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Nonprofit founder who helped officials raid Mississippi’s welfare fund becomes latest witness for the feds

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Nonprofit founder who helped officials raid Mississippi's welfare fund becomes latest witness for the feds

Federal authorities in Mississippi have added another defendant to their witness list in their prosecution of the still unfolding welfare scandal: Christi Webb, former director of the nonprofit Family Resource Center of North Mississippi.

Webb pleaded guilty Thursday to one count of theft concerning federal funds, the latest criminal charge within the scheme that began with state arrests in 2020.

As one of the leaders of a state-sanctioned initiative called Families First for Mississippi, Webb was a key figure in some of the diversion of $77 million in federal anti-poverty funds away from poor families under the administration of former Gov. Phil Bryant. Most of the money came from a flexible federal block grant called Temporary Assistance for Needy Families, or TANF.

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As part of her plea, Webb has agreed to cooperate with prosecutors in their ongoing probe into widespread corruption inside the welfare program overseen by Bryant and his appointed welfare director John Davis. Davis pleaded guilty to state and federal charges in September.

Bryant has not faced any charges, although text messages uncovered by Mississippi Today illustrate Bryant's involvement in various parts of the scheme, including the promise to “open a hole” for former NFL legend Brett Favre's pharmaceutical venture, which eventually received $2 million in stolen welfare funds. Bryant has denied any wrongdoing.

Bryant has denied any wrongdoing, saying he did not carefully read his text messages to understand what Favre was requesting.

Webb has already made allegations that the former governor manipulated welfare spending during his time in office, Mississippi Today first reported. Webb was a supporter of former Attorney General Jim Hood, Gov. Tate Reeves' Democratic opponent for governor in 2019, and had hired his wife to one of the nonprofit's local family resource centers.

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That election year, a local lawmaker threatened Webb on behalf of Bryant, Webb told Mississippi Today through her attorney Casey Lott, who currently sits on FRC's board.

Lott said the north Mississippi Republican lawmaker told Webb, “FRC will never another dollar from the state if you don't fire Debbie Hood.”

“He explicitly said, ‘I'm the governor's messenger,” Lott said.

Federal authorities have remained silent about who they are targeting in their ongoing investigation. But state officials including State Auditor Shad White, who originally investigated the case, and District Attorney Jody Owens, who secured the first indictments, say they intend to investigate “everybody top to bottom.”

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“John Davis is critical because the ladder continues to move up,” Owens said after Davis' guilty pleas.

Webb pleaded guilty to a bill of information, which occurs when a defendant waives a grand jury indictment. The single count against Webb, the first criminal charge she has faced, mirrors the bill of information Davis pleaded guilty to in September.

So far, all the charges that the U.S. Attorney's Office have filed in the welfare scandal revolve around money that flowed from the state welfare department through private nonprofits to retired professional wrestlers Teddy DiBiase Jr. and Brett DiBiase.

Lott said Webb ran her welfare grant in accordance with guidance from her attorneys and the welfare department's state plan.

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“The US attorneys will say, ‘Well, the state plan is not consistent with the TANF guidelines.' Well, that's a state problem. That's not a Christi Webb problem. She didn't create that plan. The state created that plan intentionally broad so they could use it as their slush fund,” Lott said Friday.

Lott, who had been representing Webb pro bono until recently, said he would not have advised Webb to take the plea and that he only stopped representing her after the U.S. Attorney's Office argued he had a conflict of interest. Because she could not afford one, Webb was represented in her plea by federal public defender Abby Edwards.

Officials have never alleged that Webb received misspent funds personally. The other nonprofit founder originally in the scandal, Nancy New, was accused of personally benefiting from the scheme because she funneled money to her for-profit school and agreed to accept stock in the pharmaceutical company she funded.

Forensic auditors estimated that Family Resource Center, which Webb had served as director from 2005 until stepping down as director this week, misspent at least $11.5 million worth of welfare funds from 2016 to 2019. Her federal criminal charges only a fraction of that — $700,000 in TANF funds and nearly $500,000 in federal emergency food assistance funds that Webb funneled to companies owned by retired professional wrestler Teddy DiBiase Jr.

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By agreeing with the information, Webb admits that Davis directed her to award sham contracts to DiBiase Jr., though Davis knew the wrestler was unqualified to provide welfare-related services.

“As a result, Webb, through FRC, intentionally misapplied federal funds to various individuals and entities for social services that were not provided,” the bill of information reads. “… As a result of the actions of Webb, Davis, Person 1 (Nancy New), Person 2 (Teddy DiBiase Jr.), and others, millions of dollars in federal safety net funds were diverted from needy families and low-income individuals in Mississippi from at least 2016 to at least 2019.”

The charge comes with a maximum sentence of up to 10 years.

Webb's federal criminal exposure was foreshadowed in the September bill of information against Davis. In it, federal authorities included Webb, Nancy New, Teddy DiBiase Jr. and one other of Hinds County as unnamed co-conspirators.

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Teddy DiBiase Jr.'s brother, Brett DiBiase, a resident of Clinton, a town in Hinds County, pleaded guilty to new federal charges against him earlier this month. Brett DiBiase was also the first person to plead guilty to state charges in 2020. In addition to hundreds of thousands from the nonprofits, Brett DiBiase received a $48,000 contract directly from the welfare department for opioid addiction education he did not conduct because he was himself checked into a luxury rehab facility. Officials also paid $160,000 in welfare funds to the rehab facility for Brett DiBiase's treatment, auditors found.

The DiBiase brothers are the sons of famous retired WWE wrestler Ted “The Million Dollar Man” DiBiase Sr., whose Christian ministry Heart of David also allegedly improperly received $1.7 million in welfare funds.

Mississippi Department of Human Services is suing all three men, as well as Webb, Davis, New and dozens of others, in its large civil case that attempts to claw back the misspent money.

Teddy DiBiase Jr. and Nancy New have never been charged federally with crimes related to the welfare scandal, though federal agents did attempt to seize DiBiase's house in 2020 during their investigation. The U.S. Attorney's Office also charged Nancy New and her son Zach New in 2021 with defrauding the Mississippi Department of Education as part of a separate scheme related to their for-profit private schools.

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In early March, Teddy DiBiase Jr. and his wife Kristen DiBiase agreed with the federal government for the U.S. Marshal Service to sell their home, a nearly 6,000-square-foot, $1.5 million lakeside property in the Madison community of Reunion. After paying the remaining mortgage and any taxes on the house, the federal government will hold the assets pending the conclusion of the forfeiture case.

The court document that spells out the agreement of the sale says one reason for the sale is to prevent foreclosure. Teddy DiBiase Jr. and his LLCs collected over $3 million in revenue from the welfare fund during the scandal, much of which from Webb's nonprofit.

The admission that Webb intentionally misapplied federal welfare funds is a departure from statements Webb made through Lott in recent months.

“The DiBiase's and their organizations contracted to provide services to needy families,” Lott said in a written statement in September. “The problem is they didn't hold up to their end of the bargain. And once they refused to do everything Christi asked them to do, she refused to award any additional subgrants to those organizations. This enraged John Davis. He yelled and cursed Christi and other FRC employees for not sending them money anyway. He threatened to cut their funding if Christi didn't do what he told her to do. And when she stood her ground and did the right thing, he followed through with his threat. Christi is the only one who ever told John Davis ‘no,' and she was punished for it. She was forced to lay hundreds of people off. Those innocent people who were providing much needed services to the North Mississippi community lost their job because Christi stood up to John Davis and did the right thing. So, to say she's a ‘co-conspirator' is absurd.”

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Around the time of this squabble in March of 2019, Davis told Teddy DiBiase Jr. he had communicated with Gov. Reeves, then lieutenant governor, about the situation with Webb, according to text messages Mississippi Today obtained.

“Tate Reeves just called me said he wanted me to know they don't give two shits about the BC or Christi to keep doing what I'm doing. Boom,” Davis texted Teddy DiBiase Jr. in March of 2019. Phone records show Davis also saved Reeves number two days after this text. (Mississippi Today could not confirm what BC in his text stands for, but two sources believed it could be a typo).

Reeves's office told Mississippi Today in September that the governor did not recall calling Davis and “doesn't really know” Webb.

Webb pleaded guilty before U.S. District Court Judge Carlton Reeves, the same judge that oversaw the pleas of Nancy and Zach New, Davis and Brett DiBiase.

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Webb's sentencing is set for June 16, but like the others, her sentencing could be delayed until the prosecution is closer to a conclusion. No one criminally charged within the welfare scandal has been and none is currently .

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

These Republicans wanted a Medicaid work requirement but couldn’t get approval. So they got creative.

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mississippitoday.org – Adam Ganucheau – 2024-04-18 09:34:11

When the North Carolina legislative ends, Jim Burgin, a conservative Republican state senator who serves as chair of his state's Senate Care Committee, will go back to his daily as a businessman.

The owner of an insurance company and a partner in a local car dealership group, Burgin fully understands the virtue of hard work. That's why when Medicaid expansion, the federal program that 10 states including Mississippi have refused to pass, came up for debate in his legislature over the past few years, he wasn't immediately sold.

“I don't think we ought to have any kind of government program that people stay on the rest of their lives,” Burgin told Mississippi Today in an interview this . “Like most of my Republican colleagues, I wanted to put a work requirement in. But we realized the feds would never approve it, so we had to think about what we really wanted to do as it related to work.”

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Many Mississippi Republican lawmakers currently face the same dilemma. Though Medicaid expansion is being seriously considered here for the first time, Senate Republicans, led by Lt. Gov. Delbert Hosemann, appear convinced that the only way the state should expand Medicaid is if a work requirement is in place. But with the federal government shot down 13 states' previous efforts to implement a work requirement, Mississippi Today reached out to leaders in North Carolina, the most recent Republican-led state to expand, to see how they came to an agreement.

READ MORE: Mississippi lawmakers look to other states' Medicaid expansions. Is North Carolina, Arkansas, Georgia worth copying?

Burgin and his colleagues, knowing the feds wouldn't allow the work requirement, went to the drawing board to determine if they could come up with a Medicaid expansion bill that still promoted work without requiring it. They started with a “trigger law,” of sorts, to mandate that if the federal government ever changed their policy on allowing states to implement a work requirement, North Carolina would move immediately to adopt one. They also added a separate trigger that the state to immediately drop out of the expansion program if Congress ever defunded it or changed its funding structure.

They also developed some creative ideas for spending the additional federal dollars the state would receive from the expansion program that were designed to promote work. Shortly after they expanded Medicaid, the North Carolina lawmakers designated hundreds of millions in expansion “signing bonus” funds on mental health reform. The state's mental health system was in crisis with major funding concerns, so Republicans appropriated $835 million — all money they got from the feds to expand Medicaid — to rebuild the crumbled system.

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“That's going to help so many hospitals and law enforcement who often had nothing to do with mentally ill people but take them to emergency rooms, whether those people had health insurance or not,” Burgin said. “Hospitals will never have to treat or pay for care for people in those situations in ERs ever again.”

Additionally, North Carolina Republicans in the coming weeks will work on getting the federal government to grant a waiver to spend federal Medicaid dollars on providing free community college — and workforce skills training — to North Carolinians enrolled in the Medicaid expansion program. Additionally, some Republicans want to add child care vouchers to that list of offerings.

“This is all to get people and to keep them working and ultimately to get them off Medicaid,” Burgin said. “Even though it can't be a requirement, we're promoting work. We want to make it easier and better for people to get work that they won't want to stay on Medicaid. They'll want a job and hopefully eventually get on a group health plan through their employer.”

So what ultimately convinced Burgin, who wanted the work requirement all along, to move forward on expansion even without it?

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“Billions of dollars,” he said plainly. “Look, I'm a business guy. I don't spend money, I invest money. I looked at (Medicaid expansion) as a great investment. I had a fiduciary responsibility to my constituents to take that money. So we wrote a bill that said that if the feds changed the work requirement, if they change anything, we can add it here or opt out of our program altogether.

“I just couldn't turn down billions of dollars that we needed in so many areas,” Burgin said. “And we get to spend that on a wide variety of things, and all of it is designed to get people across this state working.”

READ MORE: Mississippi leaving more than $1 billion per year on table by rejecting Medicaid expansion


North Carolina state Rep. Donny Lambeth, R-Forsyth, speaks to reporters following the House Health Committee meeting at the Legislative Office Building in Raleigh, N.C., on Tuesday, Feb. 14, 2023. Lambeth is a primary sponsor of a bill that the committee approved that would expand Medicaid to hundreds of thousands of low-income adults through the 2010 Affordable Care Act. (AP Photos/Gary D. Robertson)

Republican state Rep. Donny Lambeth was the primary author of what became North Carolina's Medicaid expansion program.

For years before an expansion program actually passed, Lambeth filed numerous expansion bills that included work requirements.

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“I was a big advocate for work requirements because, well, I felt like it was just one of those things,” Lambeth said. “We shouldn't want to just add more people to Medicaid rolls. You have to figure out how to help them and get them off Medicaid and into the workforce. But when we talked to people in Washington, it was obvious there was no way, if we went through all the trouble to get votes and get it passed, we would get a work requirement.”

READ MORE: How Medicaid expansion could have saved Tim's leg — and changed his life

So Lambeth, like Burgin, went to the drawing board. They wrote into their expansion plan a provision similar to red-state Montana: State government agencies would work with private partners who had experience with job training to create a program that would pay for Medicaid enrollees to get job training. They couldn't require people to participate, but they could make it worth their while.

“We looked at what other Republican states that had expanded had done,” Lambeth said. “What we came up with in lieu of the work requirement was an optional jobs training program. The idea was that even though you've got the vast majority of people on Medicaid working, they're working in low-income jobs. They couldn't afford health insurance even though they worked.  The theory is that if you take advantage of expansion dollars from the federal government with a job training program like this, you can go back and further your education. You can then get a better job, have a higher standard of living, get off Medicaid and be able to afford your health insurance.”

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Peg O'Connell, a health care advocate and consultant who for several years led North Carolina's push to expand Medicaid, explained how the jobs training program worked in Montana before her state included it in its program.

“A man had been a hit-or-miss carpenter and really wanted a commercial drivers license,” O'Connell said. “So the Montana caseworker under their expansion program helped get him his CDL. They paid for him to take the classes as well as lodging when he had to travel to take his exams, and they even bought him a pair of work boots. This man is now doing what he wants to be doing, he's got full-time employment with health insurance, and he has worked himself off the Medicaid program. That's the idea behind our program here.”

Lambeth, like Burgin, is a small business owner. He owns a logistics contracting company, and he “can't afford to offer my employees health insurance,” he said.

“Are there some quote-unquote deadbeats, people who are not working, playing off the system? Sure,” Lambeth said. “But we were able to identify the farmers in the east part of the state, small, mom-and-pop businesses that were growing at significant rates but couldn't quite afford to offer health insurance, hard-working people who desperately wanted and needed health insurance but couldn't afford it. We saw that the vast majority of these people are working, and the ones who weren't working, we felt like if we could get them training or education and child care, that would help get them off Medicaid.

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“If we're really all about getting people working, then let's figure out ways to work within the system, draw down those billions of dollars, and use them to get them working,” he continued. “It was really that simple.”

READ MORE: Gov. Roy Cooper, the most recent state leader to expand Medicaid, has advice for Mississippi lawmakers


Burgin and Lambeth both supported work requirements but saw they wouldn't get approval from the federal government. They listened to their constituents, they considered the heart of their desire to get North Carolinians working and they found creative solutions.

As Mississippi lawmakers consider Medicaid expansion over the next few days, what advice might the North Carolina Republicans offer to their counterparts here in the Magnolia State?

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“You tell any of the hardest nos, the most conservative ones, that if they have any doubts, give them my number. My cell is 919-207-7263,” Burgin said. “I'll be happy to answer any question they may have and to them about why this is so beneficial. I've been tracking Mississippi. I testified the other day to Kansas lawmakers. We've already talked to folks in Georgia, Florida, Kansas and now Mississippi. All of these holdout states are looking at the same thing saying, ‘We've put it off. Why did you do it?' For me and my Republican colleagues, it came down to a business decision. How could we, in good faith, leave billions on the table?”

Lambeth answered the question with an anecdote.

“I heard from just dozens and dozens of North Carolinians while we were debating this,” Lambeth said. “But I got one letter, in particular, from a Christmas tree farmer in Ash County. She couldn't afford health insurance, and she was worried they were going to lose their farm because of out-of-pocket medical bills they had.

“These are real people. They're not the traditional Medicaid where they're poor and not to improve their lives. They are hard-working people just not able to afford health insurance. I promise the average Mississippian is not much different than the average North Carolinian in that way. Why would we be in the positions we're in and not help them? I mean really, why?”

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READ MORE: The Christian argument for Medicaid expansion

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

On this day in 1959

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mississippitoday.org – Jerry Mitchell – 2024-04-18 07:00:00

April 18, 1959

The Youth March for Integrated Schools on Oct. 25, 1958. A second march followed on April 18, 1959. Credit: Courtesy of National Archives

About 26,000 took part in the Youth March for Integrated Schools in Washington, D.C. They heard speeches by Martin Luther King Jr., A. Phillip Randolph and NAACP leader Roy Wilkins. 

In advance of the march, false accusations were made that Communists had infiltrated the group. In response, the put out a statement: “The sponsors of the March have not invited Communists or communist . Nor have they invited members of the Ku Klux Klan or the White Citizens' Council. We do not want the participation of these groups, nor of individuals or other organizations holding similar views.” 

After the march, a delegation of students went to present their demands to President Eisenhower, only to be told by his deputy assistant that “the president is just as anxious as they are to see an America where discrimination does not exist, where equality of is available to all.” 

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King praised the students, saying, “In your great movement to organize a march for integrated schools, you have awakened on hundreds of campuses throughout the a new spirit of social inquiry to the benefit of all Americans.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Bill would limit how long those convicted could seek relief, even if wrongfully convicted

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Legislation being debated in a conference committee would restrict how “Goon Squad” victims and others can get relief if they have been wrongfully convicted.

House Bill 1253 would impose a one-year limitation on newly discovered evidence.

The bill passed the House. The Senate passed an amended version. The House invited conference. Conferees are Kevin Horan, Lance Varner and Celeste in the House and Joey Fillingane, Daniel Sparks and Derrick Simmons in the Senate.

“It would impact the constitutional right to access the courts in Mississippi by any inmate — innocent persons and Goon Squad victims included,” Krissy Nobile, director of the Mississippi Office of Capital Post-Conviction Counsel, said of HB 1253. “It is terrible legislation that is detached from how the legal system actually works.”

Lynn Fitch's office, which has been pushing for the passage, defends the bill.

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“HB 1253 streamlines the pathway to justice and closure for victims of and families of homicide victims, restoring some balance to the post-conviction appellate process,” said Fitch's chief of staff, Michelle Williams.It would be a wonderful way to mark Crime Victims' Rights Week next week with passage of this important legislation.”

The bill is being touted as a way to streamline appeals of those who have been convicted, but defense lawyers worry that this change may erode constitutional rights.

In January 2023, five deputies for the Rankin County Sheriff's Department and a Richland officer, who were part of a “Goon Squad” operation, broke into a house without a warrant, tortured two Black men, Michael Corey Jenkins and Eddie Terrell Parker, threatened to use a sex toy on them and shoved a gun in Jenkins' mouth and shot him. To conceal their crimes, they destroyed surveillance footage, planted false evidence and lied to investigators.

Last month, a federal judge sentenced those to between 18 and 40 years in prison. They received similar sentences in court.

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But an investigation by the Mississippi Center for Investigative at Mississippi and The New York Times uncovered allegations that torture, coerced statements and false incident reports involving, not only these six officers, but more than a dozen others with cases that may stretch back two decades. Some of those interviewed alleged that deputies also planted evidence and filed false charges against them.

Rankin County District Attorney Bubba Bramlett has said his office is examining pending cases involving these six officers. In any cases where their testimony was essential or the integrity of the investigation may have been compromised, those cases are being dismissed, he said.

But Bramlett has declined to explain how far back his office will look, and questions remain about how many of those arrested by the Rankin County Sheriff's Department on drug charges have been either wrongfully charged or convicted.

State Public Defender Andre de Gruy sees problems with this legislation for cases involving claims of wrongful convictions.

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“For this [Goon Squad] scandal, it would be one year from passage,” said State Public Defender Andre de Gruy. “Future scandals might be harder to predict, and a lawyer miscalculating and not filing on time would not be an excuse.”

Nobile said a one-year window is hardly enough time to develop new evidence and file a petition. “The discovery of new evidence and the in forensic sciences sometimes takes years to develop,” she said.

For instance, the last five people exonerated from Mississippi's death row were wrongfully imprisoned for 22 years on average, she said.

If this new bill had been the law, she said these five people might have been executed, only for them to be exonerated after their deaths.

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Nobile said the has recently decided that it has no power to recognize constitutional rights after someone is convicted, even if those rights are violated.

“My concern about the core constitutional rights is that they deserve to be protected because they are, by their very nature, in the state and-or federal constitution,” she said. “When a person's criminal case is infected with constitutional defects, especially when a verdict is made unsafe as a result, finality is not a legitimate interest. In that , finality is a fiction, and all that exists is an interest in expediency.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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