Mississippi Today
Welfare agency settles with eight defendants in fraud lawsuit
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More than two years into the litigation, the state of Mississippi has agreed to settle with eight defendants in the ongoing welfare fraud civil case for a total of about $750,000.
That’s roughly half as much as the state has spent on legal fees in the case so far.
The eight defendants, who allegedly illegally received or were liable for the misspending of a total of $1.7 million, did not admit to wrongdoing. Their settlements represent some of the smaller components of the overall welfare fraud scheme. The future repayments amount to less than 1% of the total $79 million in federal welfare funds that Mississippi Department of Human Services’ lawsuit claims were lost to malfeasance.
The defendants, date and amount of settlement, and total alleged damages are as follows:
- Chase Computer Services, August 2024, $1,000 out of $375,750
- Southtec, August 2024, $10,000 out of $19,000
- Lobaki, April 2024, $300,000 out of $795,000
- Williams, Weiss, Hester & Company, April 2024, $220,000 out of an undetermined amount
- William Longwitz and Inside Capitol, March 2024, $318,325 out of $318,325
- Rise Luxury Rehab, October 2023, $105,000 out of $160,000
- Warren Washington Issaquena Sharkey Community Action Agency, January 2023, $49,190.06 out of $49,190.06
Each of these companies received funds from the federal Temporary Assistance for Needy Families block grant, or TANF, from the two private nonprofits – Mississippi Community Education Center and Family Resource Center of North Mississippi – running a program called Families First for Mississippi. The program operators, who received as much as $40 million a year, were supposed to channel resources to help stabilize poor families and prevent child neglect but instead frittered the funds away on contracts with politically connected companies.
Mississippi Department of Human Services said it could not comment on the settlements due to Hinds County Circuit Court Judge Faye Peterson’s suppression order in the case, which has prevented parties from discussing the situation publicly. Defendants who have been released from the case are no longer bound by the gag order, and representatives of virtual reality tech firm Lobaki agreed to share their story with Mississippi Today in a piece published in April.
“We didn’t know the difference between TANF and a frickin’ turnip patch, you know?” Lobaki President Kevin Loud said at the time.
Will Longwitz, a former Madison County Court Judge, state senator and legislative lobbyist currently working as a personal injury lawyer in New Orleans, settled with MDHS in March for the total amount of TANF funds auditors say he received – $318,325.
The lawsuit alleged the nonprofits hired Longwitz’s firm Inside Capitol to lobby lawmakers on behalf of Families First, though federal regulations prohibit the use of TANF funds for lobbying activities. He registered as a lobbyist for MCEC in 2018 but reported receiving no compensation from the nonprofit, despite the six-figure income. He also reported spending zero on food, gifts or entertainment for public officials.
MCEC hired four other lobbyists during the time of the scandal, but it paid Longwitz by far the most – nearly $320,000 compared to between $21,000 and $72,000 for each of the others. The lawsuit alleged Longwitz knew the money he received came from the welfare fund.
Longwitz, who represented himself in the litigation, denied the allegations, repeating legalese and referring to himself as a releasee in an email to Mississippi Today Monday. “Releasees specifically and categorically deny any and all liability with regard to all claims and allegations, and settle the claims only to buy their peace and avoid further cost of defense,” he wrote.
Longwitz agreed to a monthly payment schedule and will have until 2033 to pay the entire amount.
Only one other defendant, Warren Washington Issaquena Sharkey Community Action Agency (WWISCAA) settled for the total amount of damages, $49,190.06, that MDHS alleges it caused. The original May 2022 lawsuit accused the nonprofit of failing to perform the services, such as academic tutoring and career skills development, it was hired to provide. Emails Mississippi Today previously obtained suggested that the organization’s partnership with Families First was a sham.
“They were absolutely doing nothing in either center,” said a social worker who was employed under the program, according to an email.
WWISCAA’s January 2023 settlement denied any wrongdoing and its director Jannis Williams declined to comment.
The Greenville-based Community Action Agency was founded in 1972 as one of the local nonprofits across the nation tasked with administering federal anti-poverty funds, primarily the Community Services Block Grant. Throughout its recent legal battle, WWISCAA seems to have maintained its normal partnership with Mississippi Department of Human Services, receiving roughly $5 million a year from the welfare agency.
In the settlements so far, Chase Computer Services, owned by Christopher Scott Chase, received the best deal by dollar amount.
MDHS claimed the nonprofits hired the tech company to develop software to track outputs and performance of the Families First program, but that it never provided the service, and it should repay the agency $375,750.
The company denied the allegations. The parties settled for just $1,000 last week. According to his LinkedIn page, Chase has worked as a senior developer at the Tupelo-based American Family Association since 2023, and the Chase Computer Services website says it is no longer accepting new clients. Chase did not respond to an email from Mississippi Today.
The lawsuit similarly accused Southtec of not completing all of the work – installing internet network and phone systems in Families First offices – that it was prepaid to conduct. MDHS claimed Southtec caused $19,000 in damages related to overages on a hotspot that it was using on Family Resource Center’s dime. They settled for $10,000 this month.
The vendor whose welfare payments raised some of the first red flags in the welfare fraud investigation – Rise Luxury Rehab – settled with MDHS back in October. For four months in 2019, former MDHS Director John Davis instructed Mississippi Community Education Center to pay $40,000 a month for his friend Brett DiBiase to be treated at the luxury rehab facility in Malibu. The company agreed to pay back $105,000 of the total $160,000 it received. Its lawyer did not return an email.
MDHS had alleged in the lawsuit that Williams, Weiss, Hester & Company, the accounting firm in charge of auditing Mississippi Community Education Center’s finances, had completed a “bogus” audit in 2017 that concealed the nonprofit’s use of TANF funds.
The lawsuit asked for damages, which would have been determined at trial, totaling the amount of the nonprofit’s misspending that the agency would have allegedly caught if the firm had performed a proper audit. MDHS settled with the accounting firm in April for $220,000.
In an emailed statement to Mississippi Today, firm owner Doug Hester maintained that his company had not committed professional malpractice.
“Unfortunately, obtaining vindication in a lawsuit of this magnitude with this many parties is extremely expensive and time consuming, so WWH made a business decision to settle the case and buy its peace rather than continue with a lengthy and expensive court battle,” Hester wrote.
Mississippi Community Education Center, its founder Nancy New, and her son Zach New also filed their own lawsuit against Williams, Weiss, Hester & Company in 2021 claiming that they relied on the accounting firm to ensure the nonprofit was spending its funds properly and that the accounting errors caused the News to be charged criminally. The News dropped the case in February.
Judge Peterson signed orders dismissing Chase Computer Services and Southtec from the case last week. She dismissed Lobaki and Williams, Weiss, Hester & Company from the case in April. Warren Washington Issaquena Sharkey Community Action Agency was removed from the lawsuit when the state filed its amended version in December of 2022. The court file does not yet contain orders of dismissal for William Longwitz, Inside Capitol, or Rise Luxury Rehab.
Mississippi Department of Human Services has paid Jones Walker, the law firm bringing the litigation, nearly $1.5 million in TANF funds since 2022, according to the state’s public accounting database. The stated purpose of the lawsuit is to clawback the misspent TANF funds.
Thirty-eight defendants remain, including Brett Favre and the University of Southern Mississippi Athletic Foundation, who together allegedly worked to channel $5 million in welfare funds to build a volleyball stadium on the college campus. They’ve also denied wrongdoing.
MDHS claims Favre is also on the hook for $2.1 million that the New nonprofit funneled to pharmaceutical companies that he sponsored. An alleged co-conspirator in that scheme, Jake Vanlandingham, pleaded guilty to a federal wire fraud charge last month.
Some of the defendants facing the biggest alleged damages, such as Davis and nonprofit operators Nancy New and Christi Webb, have already pleaded guilty to criminal charges related to the scheme and will likely have to pay restitution for their crimes.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1898
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Feb. 22, 1898
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Frazier Baker, the first Black postmaster of the small town of Lake City, South Carolina, and his baby daughter, Julia, were killed, and his wife and three other daughters were injured when a lynch mob attacked.
When President William McKinley appointed Baker the previous year, local whites began to attack Baker’s abilities. Postal inspectors determined the accusations were unfounded, but that didn’t halt those determined to destroy him.
Hundreds of whites set fire to the post office, where the Bakers lived, and reportedly fired up to 100 bullets into their home. Outraged citizens in town wrote a resolution describing the attack and 25 years of “lawlessness” and “bloody butchery” in the area.
Crusading journalist Ida B. Wells wrote the White House about the attack, noting that the family was now in the Black hospital in Charleston “and when they recover sufficiently to be discharged, they) have no dollar with which to buy food, shelter or raiment.
McKinley ordered an investigation that led to charges against 13 men, but no one was ever convicted. The family left South Carolina for Boston, and later that year, the first nationwide civil rights organization in the U.S., the National Afro-American Council, was formed.
In 2019, the Lake City post office was renamed to honor Frazier Baker.
“We, as a family, are glad that the recognition of this painful event finally happened,” his great-niece, Dr. Fostenia Baker said. “It’s long overdue.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Memorial Health System takes over Biloxi hospital, what will change?
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by Justin Glowacki with contributions from Rasheed Ambrose, Javion Henry, McKenna Klamm, Matt Martin and Aidan Tarrant
BILOXI – On Feb. 1, Memorial Health System officially took over Merit Health Biloxi, solidifying its position as the dominant healthcare provider in the region. According to Fitch Ratings, Memorial now controls more than 85% of the local health care market.
This isn’t Memorial’s first hospital acquisition. In 2019, it took over Stone County Hospital and expanded services. Memorial considers that transition a success and expects similar results in Biloxi.
However, health care experts caution that when one provider dominates a market, it can lead to higher prices and fewer options for patients.
Expanding specialty care and services
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One of the biggest benefits of the acquisition, according to Kristian Spear, the new administrator of Memorial Hospital Biloxi, will be access to Memorial’s referral network.
By joining Memorial’s network, Biloxi patients will have access to more services, over 40 specialties and over 100 clinics.
“Everything that you can get at Gulfport, you will have access to here through the referral system,” Spear said.
One of the first improvements will be the reopening of the Radiation Oncology Clinic at Cedar Lake, which previously shut down due to “availability shortages,” though hospital administration did not expand on what that entailed.
“In the next few months, the community will see a difference,” Spear said. “We’re going to bring resources here that they haven’t had.”
Beyond specialty care, Memorial is also expanding hospital services and increasing capacity. Angela Benda, director of quality and performance improvement at Memorial Hospital Biloxi, said the hospital is focused on growth.
“We’re a 153-bed hospital, and we average a census of right now about 30 to 40 a day. It’s not that much, and so, the plan is just to grow and give more services,” Benda said. “So, we’re going to expand on the fifth floor, open up more beds, more admissions, more surgeries, more provider presence, especially around the specialties like cardiology and OB-GYN and just a few others like that.”
For patient Kenneth Pritchett, a Biloxi resident for over 30 years, those changes couldn’t come soon enough.
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Pritchett, who was diagnosed with congestive heart failure, received treatment at Merit Health Biloxi. He currently sees a cardiologist in Cedar Lake, a 15-minute drive on the interstate. He says having a cardiologist in Biloxi would make a difference.
“Yes, it’d be very helpful if it was closer,” Pritchett said. “That’d be right across the track instead of going on the interstate.”
Beyond specialty services and expanded capacity, Memorial is upgrading medical equipment and renovating the hospital to improve both function and appearance. As far as a timeline for these changes, Memorial said, “We are taking time to assess the needs and will make adjustments that make sense for patient care and employee workflow as time and budget allow.”
Unanswered questions: insurance and staffing
As Memorial Health System takes over Merit Health Biloxi, two major questions remain:
- Will patients still be covered under the same insurance plans?
- Will current hospital staff keep their jobs?
Insurance Concerns
Memorial has not finalized agreements with all insurance providers and has not provided a timeline for when those agreements will be in place.
In a statement, the hospital said:
“Memorial recommends that patients contact their insurance provider to get their specific coverage questions answered. However, patients should always seek to get the care they need, and Memorial will work through the financial process with the payers and the patients afterward.”
We asked Memorial Health System how the insurance agreements were handled after it acquired Stone County Hospital. They said they had “no additional input.”
What about hospital staff?
According to Spear, Merit Health Biloxi had around 500 employees.
“A lot of the employees here have worked here for many, many years. They’re very loyal. I want to continue that, and I want them to come to me when they have any concerns, questions, and I want to work with this team together,” Spear said.
She explained that there will be a 90-day transitional period where all employees are integrated into Memorial Health System’s software.
“Employees are not going to notice much of a difference. They’re still going to come to work. They’re going to do their day-to-day job. Over the next few months, we will probably do some transitioning of their computer system. But that’s not going to be right away.”
The transition to new ownership also means Memorial will evaluate how the hospital is operated and determine if changes need to be made.
“As we get it and assess the different workflows and the different policies, there will be some changes to that over time. Just it’s going to take time to get in here and figure that out.”
During this 90-day period, Erin Rosetti, Communications Manager at Memorial Health System said, “Biloxi employees in good standing will transition to Memorial at the same pay rate and equivalent job title.”
Kent Nicaud, President and CEO of Memorial Health System, said in a statement that the hospital is committed to “supporting our staff and ensuring they are aligned with the long-term vision of our health system.”
What research says about hospital consolidations
While Memorial is promising improvements, larger trends in hospital mergers raise important questions.
Research published by the Rand Corporation, a nonprofit, nonpartisan research organization, found that research into hospital consolidations reported increased prices anywhere from 3.9% to 65%, even among nonprofit hospitals.
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The impact on patient care is mixed. Some studies suggest merging hospitals can streamline services and improve efficiency. Others indicate mergers reduce competition, which can drive up costs without necessarily improving care.
When asked about potential changes to the cost of care, hospital leaders declined to comment until after negations with insurance companies are finalized, but did clarify Memorial’s “prices are set.”
“We have a proven record of being able to go into institutions and transform them,” said Angie Juzang, Vice President of Marketing and Community Relations at Memorial Health System.
When Memorial acquired Stone County Hospital, it expanded the emergency room to provide 24/7 emergency room coverage and renovated the interior.
When asked whether prices increased after the Stone County acquisition, Memorial responded:
“Our presence has expanded access to health care for everyone in Stone County and the surrounding communities. We are providing quality healthcare, regardless of a patient’s ability to pay.”
The response did not directly address whether prices went up — leaving the question unanswered.
The bigger picture: Hospital consolidations on the rise
According to health care consulting firm Kaufman Hall, hospital mergers and acquisitions are returning to pre-pandemic levels and are expected to increase through 2025.
Hospitals are seeking stronger financial partnerships to help expand services and remain stable in an uncertain health care market.
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Source: Kaufman Hall M&A Review
Proponents of hospital consolidations argue mergers help hospitals operate more efficiently by:
- Sharing resources.
- Reducing overhead costs.
- Negotiating better supply pricing.
However, opponents warn few competitors in a market can:
- Reduce incentives to lower prices.
- Slow wage increases for hospital staff.
- Lessen the pressure to improve services.
Leemore Dafny, PhD, a professor at Harvard and former deputy director for health care and antitrust at the Federal Trade Commission’s Bureau of Economics, has studied hospital consolidations extensively.
In testimony before Congress, she warned: “When rivals merge, prices increase, and there’s scant evidence of improvements in the quality of care that patients receive. There is also a fair amount of evidence that quality of care decreases.”
Meanwhile, an American Hospital Association analysis found consolidations lead to a 3.3% reduction in annual operating expenses and a 3.7% reduction in revenue per patient.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Adopted people face barriers obtaining birth certificates. Some lawmakers point to murky opposition from judges
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When Judi Cox was 18, she began searching for her biological mother. Two weeks later she discovered her mother had already died.
Cox, 41, was born in Gulfport. Her mother was 15 and her father didn’t know he had a child. He would discover his daughter’s existence only when, as an adult, she took an ancestry test and matched with his niece.
It was this opaque family history, its details coming to light through a convergence of tragedy and happenstance, that led Cox to seek stronger legal protections for adopted people in Mississippi. Ensuring adopted people have access to their birth certificates has been a central pillar of her advocacy on behalf of adoptees. But legislative proposals to advance such protections have died for years, including this year.
Cox said the failure is an example of discrimination against adopted people in Mississippi — where adoption has been championed as a reprieve for mothers forced into giving birth as a result of the state’s abortion ban.
“A lot of people think it’s about search and reunion, and it’s not. It’s about having equal rights. I mean, everybody else has their birth certificate,” Cox said. “Why should we be denied ours?”
Mississippi lawmakers who have pushed unsuccessfully for legislation to guarantee adoptees access to their birth certificate have said, in private emails to Cox and interviews with Mississippi Today, that opposition comes from judges.
“There are a few judges that oppose the bill from what I’ve heard,” wrote Republican Sen. Angela Hill in a 2023 email.
Hill was recounting opposition to a bill that died during the 2023 legislative session, but a similar measure in 2025 met the same fate. In an interview this month, Hill said she believed the political opposition to the legislation could be bound up with personal interest.
“Somebody in a high place doesn’t want an adoption unsealed,” Hill said. “I don’t know who we’re protecting from somebody finding their birth parents,” Hill said. “But it leads you to believe some people have a very strong interest in keeping adoption records sealed. Unless it’s personal, I don’t understand it.”
In another 2023 email to Cox reviewed by Mississippi Today, Republican Rep. Lee Yancey wrote that some were concerned the bill “might be a deterrent to adoption if their identities were disclosed.”
The 2023 legislative session was the first time a proposal to guarantee adoptees access to their birth certificates was introduced under the state’s new legal landscape surrounding abortion.
In 2018, Mississippi enacted a law that banned most abortions after 15 weeks. The state’s only abortion clinic challenged the law, and that became the case that the U.S. Supreme Court used in 2022 to overturn Roe v. Wade, its landmark 1973 ruling that established a nationwide right to abortion.
Roe v. Wade had rested in part on a woman’s right to privacy, a legal framework Mississippi’s Solicitor General successfully undermined in Dobbs v. Jackson Women’s Health Organization. Before that ruling, anti-abortion advocates had feared allowing adoptees to obtain their birth certificates could push women toward abortion rather than adoption.
Abortion would look like a better option for parents who feared future contact or disclosure of their identities, the argument went. With legal access to abortion a thing of the past in Mississippi, Cox said she sees a contradiction.
“Mississippi does not recognize privacy in that matter, as far as abortions and all that. So if you don’t acknowledge it in an abortion setting, how can you do it in an adoption setting?” Cox said. “You can’t pick and choose whether you’re going to protect my privacy.”
Opponents to legislation easing access to birth certificates for adoptees have also argued that such proposals would unfairly override previous affidavits filed by birth parents requesting privacy.
The 2025 bill, proposed by Republican Rep. Billy Calvert, would direct the state Bureau of Vital Records to issue adoptees aged 21 and older a copy of their original birth certificate.
The bill would also have required the Bureau to prepare a form parents could use to indicate their preferences regarding contact from an adoptee. That provision, along with existing laws that guard against stalking, would give adoptees access to their birth certificate while protecting parents who don’t wish to be contacted, Cox said.
In 2021, Cox tried to get a copy of her birth certificate. She asked Lauderdale County Chancery Judge Charlie Smith, who is now retired, to unseal her adoption records. The Judge refused because Cox had already learned the identity of her biological parents, emails show.
“With the information that you already have, Judge Smith sees no reason to grant the request to open the sealed adoption records at this time,” wrote Tawanna Wright, administrator for the 12th District Chancery Court in Meridian. “If you would like to formally file a motion and request a hearing, you are certainly welcome to do so.”
In her case and others, judges often rely on a subjective definition of what constitutes a “good cause” for unsealing records, Cox said. Going through the current legal process for unsealing records can be costly, and adoptees can’t always control when and how they learn the identity of their biological parents, Cox added.
After Cox’s biological mother died, her biological uncle was going through her things and came across the phone number for Cox’s adoptive parents. He called them.
“My adoptive mom then called to tell me the news — just hours after learning I was expecting my first child,” Cox said.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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