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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.

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 run one of the nonprofit’s local family resource centers.

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 receive 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 Hinds County District Attorney Jody Owens, who secured the first indictments, say they intend to investigate “everybody top to bottom.”

“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.

“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 arrested 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 cover 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.

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 resident of Hinds County as unnamed co-conspirators.

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 training 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.

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.”

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.

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 sentenced and none is currently incarcerated.

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

Mississippi Today

Crystal Springs commercial painter says police damaged his eyesight

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mississippitoday.org – Mina Corpuz – 2024-11-22 12:21:00

CRYSTAL SPRINGS – Roger Horton has worked decades as a commercial painter, a skill he’s kept up with even with the challenge of having what his wife has called “one good eye.” 

It hasn’t stopped him from being able to complete detailed paint jobs and create straight lines without the help of tape. But last year following a head injury, he and others said people have been pointing out a change in his work. Horton says the sight in his right eye is clouded, like he is looking underwater.

Affected vision, short term memory and periods of irritability – potential symptoms of concussion – followed after he was arrested last September. During an encounter with several police officers, Horton alleges more than one slammed his head into a cruiser and placed handcuffs on so tight that he started to bleed. 

“(The officer) was kind of rough with me and all, and he takes my head and I said, ‘What’d I do?’” he recalled recently. 

Horton ended up being convicted of two misdemeanor charges and has paid off the fines, but a year later he still has questions about the arrest and treatment by the police. 

To date, he has not seen a doctor to evaluate his eye and check for vision or cognitive issues. Horton and his wife Rhonda don’t have a car, and transportation to doctor’s appointments in the Jackson area remains a challenge. 

The Hortons have lived in Crystal Springs all their lives, and they have lived in the home the past five years that belonged to Rhonda’s mother. 

More than a quarter of all people in Crystal Springs live below the poverty line, and that includes the couple. Rhonda Horton said it’s hard to make a living because there aren’t a lot of jobs, but they support themselves as painters. 

That’s how they met Yvonne Florczak-Seeman, who lived in Illinois and purchased her first historical property in Crystal Springs in 2019. She splits her time between the two states. 

“We painted that porch bar and the rest is history,” Rhonda Horton said, adding that they went on to complete detailed work on mantles, kitchen cabinets and a cigar room at Florczak-Seeman’s North Jackson Street residence. 

Over the years, the couple built a relationship with Florczak-Seeman, who is seeking to open a women’s empowerment center called the Butterfly Garden, in the building next to city hall. 

Yvonne Florczak-Seeman poses for a portrait at her business, The Butterfly Garden, in Crystal Springs, Miss., Tuesday, Oct. 1, 2024. Credit: Eric Shelton/Mississippi Today

Florczak-Seeman has supported the couple numerous times, including helping them pay a late water bill and offering them work. She called them talented painters and hired them again to paint the interior of the future center, located at East Railroad Avenue. 

In pieces, Rhonda Horton told Florczak-Seeman about her husband’s arrest and later the injuries she said he sustained from it. Florczak-Seeman had questions about the encounter and other potential injustices at play, so she offered to help. 

“I just want them to pay for what they’ve done not just to him, but everybody,” Rhonda Horton said. “That’s what I want, justice.” 

The Arrest

On Sept. 24, 2023, Horton was walking home from a friend’s house when officers approached him. One grabbed his arms to handcuff him, and he remembers them cutting his wrist and causing it to bleed.

Then, he said, a second officer slammed his head into the top of the police car, followed by another officer who slammed his head again. During the encounter, a bag of marijuana that Horton said he found fell out of his pocket onto the ground. 

An officer put Horton in the back of the cruiser and took him to the station where Horton asked to speak to the police chief and call his wife. He said the police took his phone and clothes.

Afterward, he was taken to the Copiah County Detention Center in Gallman. 

Police Chief Tony Hemphill disputed Horton’s allegation of mistreatment, saying he did not sustain any injuries that required hospitalization. He said Horton’s wrist was cut while he resisted arrest. 

“He was not brutalized and targeted,” Hemphill said. “If he had just complied, he wouldn’t have had to come up there (to jail) that night.”

Two police reports from the night of the September 2023 arrest detail how officers had responded to a possible assault and were given the description of a white man. While in the area, they encountered Horton — the only person who fit that description. 

Hemphill said a mother called police after her daughter told her she was assaulted. He said officers approached Horton on the street and tried to talk with him to rule him out as a suspect. 

That’s when Horton began “fighting, pulling away, and kicking against (the officer’s) patrol vehicle, trying to run,” according to a police report from the night and Hemphill. Horton denies doing any of that. 

The next day police took Horton from the county jail to the Crystal Springs police station. There, police informed him a teenage girl reported being assaulted. After learning about the assault allegation, Horton remembered feeling shocked and saying it couldn’t be true because he was not on the street where the alleged incident took place. 

Hemphill confirmed the police investigated the assault allegation and found it not credible, meaning Horton wouldn’t face any related charges. He said he communicated this to Horton and his wife early on and since then, which the couple disputes. 

As Horton was being arrested and detained, his wife grew worried because she had just spoken with him on the phone and expected him to arrive home shortly. Rhonda Horton and her adult son started calling Roger’s phone, each not getting an answer. 

Then during one of the calls by her son, someone who did not identify himself answered Roger’s phone and said, ‘Your daddy’s dead’ and then hung up, Rhonda Horton said. 

She was starting to assume the worst had happened. Rhonda Horton wouldn’t have confirmation her husband was alive until he called from the county jail in the early morning. 

The next morning as she talked with the police chief, Rhonda Horton asked the chief about who answered the phone and told her son that Roger was dead. The chief told her the person who answered must have been from the county. 

Hemphill later told Mississippi Today that he did not know about the call and that type of behavior by his staff “is not going to be tolerated.” Similarly, Copiah County Sheriff Byron Swilley said he had not heard about it and could not say whether a member of his department made the comment to Rhonda and Roger Horton’s son. 

A Sept. 25, 2023, citation signed by Hemphill, shared with Mississippi Today, summoned Roger Horton to municipal court for the misdemeanor charges of possession of marijuana and resisting arrest and directed him not to have contact with the alleged victim in the assault case. No contact orders are typically for cases such as domestic violence and sexual assault and they are set by a judge.

LaKiedra Kangar, who works in municipal court services, said the no contact order was put in place because of the assault allegation. She confirmed Horton was not charged with the offense following the police department’s investigation of the allegation. 

Weeks passed. Roger Horton went to court for the misdemeanor charges, to which he pleaded guilty.  Felony assault charges were not part of the hearing. Municipal Court Judge Matthew Kitchens ordered Roger to pay over $900 in fines for the misdemeanors. 

Horton was able to pay for some of the fine through at least 10 hours worth of court-ordered community service, which he said involved painting buildings for the city. 

Months later after learning about Horton’s arrest and how he said the police treated him, Florczak-Seeman said she wanted to know more. Horton didn’t have access to his arrest documents, so she accompanied him and his wife to the police department to ask for them. 

The first visit, Horton asked but did not receive the arrest report. Florczak-Seeman asked if he had a fine for any of the charges, which police said Horton did even after completing some community service hours. Florczak-Seeman paid for the remaining balance and had him work for her for two days to pay that off. 

This year, they went to the police department a second time so Horton could ask for his arrest paperwork. An officer told him he didn’t need it and that the rape allegation had been investigated and found not to be credible, Horton told Mississippi Today. 

Florczak-Seeman asked why Horton couldn’t receive the report. She said Hemphill asked if she was Horton’s attorney, and Florczak-Seeman clarified she was his representative. 

The chief left for a few minutes and returned with two pieces of paper and handed them to Horton. Hemphill told Mississippi Today he did not recall whether he was the one who handed the report to Horton. 

Florczak-Seeman took the document from Horton and began to read it as they stood in the lobby. She said she was horrified to see the name of the alleged, underage victim and her address in the report.

Hemphill said the victim’s personal information should have been restricted and not doing so was an oversight. 

After reading the report, Florczak-Seeman went down the street to the mayor’s office at city hall to explain what happened, and how she believed the mayor had grounds to fire the police chief because he provided that document to Roger with the alleged victim’s information. 

Crystal Springs Mayor Sally Garland Credit: Crystal Springs website

Mayor Sally Garland confirmed she had a conversation with Florczak-Seeman about the police chief’s employment. 

She said she reviews all complaints about city officials, and Garland said she goes to the department head to get a better understanding of the situation. If she determines there are potential grounds for termination, a hearing would be scheduled with the Board of Aldermen, and the group would vote on that decision.   

Garland did not find grounds for termination, and Hemphill remains police chief. 

A Strange Visit

The Hortons and Florczak-Seeman hadn’t given much thought about the 2023 arrest, until weeks ago when a teenaged girl suddenly showed up in Florczak-Seeman’s yard. 

At the end of September at the North Jackson Street home, Florczak-Seeman heard screaming and found the teenage girl who came onto her property. She asked what was wrong, and the teenager said she was chased by a dog, which Florczak-Seeman and Rhonda Horton did not see. 

The teenager asked for a soda, and Rhonda Horton went inside to get one. Florczak-Seeman asked where the teenager lived, and she gave an answer that Florczak-Seeman said conflicted with what two girls who were standing nearby on the public sidewalk said she told them. 

Then Florczak-Seeman asked the teenager’s name and recognized it as the name of the alleged victim on Horton’s arrest record. Immediately, Florczak-Seeman said she turned to Horton and told him to stay back, and she told the teenager to get off her property, which she did. 

At the moment, they were not able to verify whether the teenager was the alleged victim from the report. Neither the Hortons nor Florczak-Seeman had seen her before, and they only knew her name from the arrest report.

“That didn’t make sense at all,” Rhonda Horton told Mississippi Today. 

Florczak-Seeman called 911 to report the situation and ask for police to come, which they did not. Hemphill told Mississippi Today a dispatcher informed him about the call with Florczak-Seeman, including details with the teenage girl and how she wanted to report the girl for trespassing. 

Florczak-Seeman is one of the people who have noticed a difference in Horton’s vision. It’s clear when comparing the detailed and clean paint job Roger completed at her Jackson Street property in 2019 and the center where he painted last year.

During an interview at the center in October, Florczak-Seeman pointed to the ceiling and noted spots that Horton did not paint. She remembers telling him about them and realized that he couldn’t see them. 

“The spots on my ceiling are still not painted, and they’re not painted as a reminder of the injustices that happened in this situation and why I got involved,” Florczak-Seeman said. 

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

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Mississippi Today

Central, south Mississippi voters will decide judicial runoffs on Tuesday

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mississippitoday.org – Taylor Vance – 2024-11-22 11:16:00

Some Mississippi voters head to the polls Tuesday to decide who should represent them on the state’s highest courts. 

Polls will be open from 7 a.m. to 7 p.m. on Tuesday. Absentee voting has begun, and in-person absentee voting at county circuit clerk’s offices ends at noon on Saturday. 

In the Jackson Metro area and parts of central Mississippi, incumbent Supreme Court Justice Jim Kitchens will compete against Republican state Sen. Jenifer Branning of Neshoba County. In areas on the Gulf Coast, Jennifer Schloegel and Amy St. Pé will face each other for an open seat on the Court of Appeals. 

Candidates for judicial offices in Mississippi are technically nonpartisan, but political parties and trade associations often contribute money to candidates and cut ads for them, which has increasingly made  them almost as partisan as other campaigns. 

In the Central District Supreme Court race, GOP forces are working to oust Kitchens, one of the dwindling number of centrist jurists on the high Court. Conservative leaders also realize Kitchens is next in line to lead the court as chief justice should current Chief Justice Mike Randolph step down.

Kitchens is one of two centrist members of the high court and is widely viewed as the preferred candidate of Democrats, though the Democratic Party has not endorsed his candidacy. 

Kitchens, first elected to the court in 2008, is a former district attorney and private-practice lawyer. On the campaign trail, he has pointed to his experience as an attorney and judge, particularly his years prosecuting criminals and his rulings on criminal cases. 

In an interview on Mississippi Today’s ‘The Other Side’ podcast, Kitchens said his opponent, who primarily practices real estate law, would be at a “significant disadvantage” because the state Supreme Court often reviews criminal cases and major civil lawsuits that are sent to them on appeal. 

“I’m sure she has an academic knowledge about the circuit courts that she perhaps learned in law school or perhaps has been to some seminars, but she does not have the hands-on trial experience that I have,” Kitchens said. “And that’s so important to the work that I do.” 

Branning, a private-practice attorney, was first elected to the Legislature in 2015. She has led the Senate Elections and Transportation committees. During her time at the Capitol, she has been one of the more conservative members of the Senate leadership, voting against changing the state flag to remove the Confederate battle emblem, voting against expanding Medicaid to the working poor and supporting mandatory and increased minimum sentences for crime.

While campaigning for the judicial seat, she has pledged to ensure that “conservative values” are always represented in the judiciary, but she has stopped short of endorsing policy positions — which Mississippi judicial candidates are prohibited from doing. 

Branning declined an invitation to appear on Mississippi Today’s podcast. 

“Mississippians need and deserve Supreme Court justices that are constitutionally conservative in nature,” Branning said in a recent interview with radio station SuperTalk Mississippi. “And by that, I mean justices that simply follow the law. They do not add or take away.”

The two candidates have collectively raised around $187,00 and spent $182,00 during the final stretch of the campaign, according to campaign finance reports filed with the Secretary of State’s office. 

Since she initially qualified in January, Branning has raised the most amount of money at $879,871, with $250,000 of that money coming from a loan she gave her campaign. She spent around $730,000 of that money. Several third party groups have supported her campaign. 

Kitchens has raised around $514,00 since he qualified for reelection. He’s spent roughly $436,000 of that money, and some of his top contributors have been trial attorneys. 

For the open Court of Appeals seat, Schloegel and St Pe, two influential names on the Gulf Coast, are working to turn out their voters in a close election. 

Schloegel is a Chancery Court judge in Harrison, Hancock and Stone counties. St. Pé  is an attorney in private practice, a municipal court judge in Gautier, and a city attorney for Moss Point. 

Schloegel has raised roughly $214,000 since she qualified, and has spent almost that same amount of money this election cycle. St. Pé has raised around $480,000 this year and spent approximately $438,067 during that timeframe. 

Whoever wins the race, it ensures that a woman will fill the open seat. After the election, half of the judges on the 10-member appellate court will be women, the most number of women who have served on the court at one time. 

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 1961

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mississippitoday.org – Jerry Mitchell – 2024-11-22 07:00:00

Nov. 22, 1961

Credit: Courtesy: Georgia Tourism & Travel

Five Black students, made up of NAACP Youth Council members and two SNCC volunteers from Albany State College, were arrested after entering the white waiting room of the Trailways station in Albany, Georgia. 

The council members bonded out of jail, but the SNCC volunteers, Bertha Gober and Blanton Hall declined bail and “chose to remain in jail over the holidays to dramatize their demand for justice,” according to SNCC Digital Gateway. The president of Albany State College expelled them. 

Gober became one of SNCC’s Freedom Singers and wrote the song, “We’ll Never Turn Back,” after the 1961 killing of Herbert Lee in Mississippi. The tune became SNCC’s anthem. 

After her release from jail, Gober joined other students, and police arrested her and other demonstrators. Back in the same jail, she sang to the police chief and mayor to open the cells, “I hear God’s children praying in jail, ‘Freedom, freedom, freedom.’” 

Albany State suspended another student, Bernice Reagon, after she joined SNCC. She poured herself into the civil rights movement and later formed the Grammy-nominated a cappella group Sweet Honey in the Rock to educate and empower the audience and community. 

“When I opened my mouth and began to sing, there was a force and power within myself I had never heard before,” a power she said she did not know she had. 

Other members of the Freedom Singers included Cordell Reagon, Bernice Johnson, Dorothy Vallis, Rutha Harris, Bernard Lafayette and Charles Neblett. On the third anniversary of the sit-in movement in 1963, they performed at Carnegie Hall. 

“This is a singing movement,” SNCC leader James Forman told a reporter. “The songs help. Without them, it would be ugly.” 

Today, the Albany Civil Rights Institute houses exhibits on these protesters, Martin Luther King Jr. and others who joined the Albany Movement.

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

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