Mississippi Today
Welfare agency settles with eight defendants in fraud lawsuit
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
Mississippi-born dancer comes home with ballet company to share her passion
Mary Kate Shearer’s vision for her future leaped nearly as high as the dancers did that summer afternoon she saw her first ballet onstage. She was only 3 years old, knocking on 4, at the time, and maybe mature enough for a USA International Ballet Competition matinee in her mom’s view.
“I bought tickets way at the back, in case we needed to sneak out,” her mother Janet Shearer recalled. No need, as it turned out. “She was rapt … just so attentive through the whole thing.
“When we walked out of Thalia Mara Hall that afternoon, she looked up and said, ‘Mommy, I want to do that.’”
“Since then, I have not stopped,” Mary Kate Shearer said, “except when injury forced me to.” The young dancer is now a company member of Chattanooga Ballet (CHA Ballet), a small regional company bound for Jackson as part of its Art/Motion tour Friday and Saturday, Jan. 24-25. The homecoming highlights Shearer in performance, with the opportunity, too, to share her newfound love of teaching.
The weekend’s two performances in Jackson showcase works by legends in contemporary ballet — a rare treat for area dance fans — and newer works as well. The flirty, energetic “Tarantella” by New York City Ballet co-founder George Balanchine and the deeply romantic “Sea Shadow” by Joffrey Ballet co-founder Gerald Arpino are key showpieces on a program that also features the new “Intersections of Life” by Dance Theatre of Harlem member Ingrid Silva, and “Copacetic,” a fun and jazzy work choreographed by Chattanooga Ballet Artistic Director Brian McSween. This is CHA Ballet’s 50th anniversary season. Shows will also include contemporary ballet performances by Belhaven University dance students (“In One Accord,” choreographed by Belhaven dance alum Rachel Bitgood) and by Mississippi Metropolitan Ballet (“Timelapse” by Andrew Brader).
Performances will be held at 7:30 p.m. Friday, Jan. 24, and at 2 p.m. Saturday, Jan. 25, at Belhaven University Bitsy Irby Visual Arts and Dance Center’s Studio Theatre.
CHA Ballet’s tour includes master classes for local dance students Saturday morning, with intermediate and advanced sessions for ages 12-15 at 9 a.m. and for advanced students ages 16 and older at 10:30 a.m. Find tickets to CHA Ballet performances and master classes and more information at https://givebutter.com/Belhaven. Advance purchase is recommended; parking is available in the lot behind the building.
The tour’s Jackson leg is sponsored by Janet Shearer Fine Art. “I wanted Mary Kate to come home and dance so that family and friends can see her locally, but more importantly, what Chattanooga Ballet does, serving communities with world-class dance,” Janet Shearer said.
The daughter of Janet and Dale Shearer grew up in Ridgeland, developing the passion she pegged as a pre-schooler through lessons with the Madison-based Mississippi Metropolitan Ballet and summer camp training. Shearer, 26, graduated from Indiana State University and its Jacobs School of Music’s dance department in May 2021 and joined CHA Ballet just months later as one of its seven professional dancers.
“She’s a very determined and dynamic dancer, and highly intelligent,” CHA Ballet CEO/Artistic Director McSween said of Shearer, also praising her range across contemporary, modern and classical works and even character roles. “She’s a great technician. She’s an even better artist.”
“I love to dance and I think it’s incredible that I get to do that as my job,” Shearer said.
When company director McSween floated the possibility of a Jackson tour, she thought it was a fantastic idea.
“That would be so much fun, for a lot of reasons,” she said. “It’ll be really cool because I haven’t had the opportunity to teach in Jackson much at all. … Since I’ve been at Chattanooga Ballet, teaching is a part of my job that I’ve fallen in love with in a way that I didn’t really expect. So, I’m excited to share with my hometown this newfound love of sharing my knowledge about my art form, not just performing.”
In classes, she continues ballet’s strong oral tradition of passing down instruction from one generation to the next. In Chattanooga, she embraces teaching 8-, 9- and 10-year-olds.
“Something about that age group — it’s their first year where they come to ballet twice a week, and they’re not self-conscious yet, so they’re still just so excited and wanting to try new things. It’s just been really cool to share my knowledge with the next generation of future dancers and dance lovers,” Shearer said.
She recalls her own childhood ballet classes at MMB, and some of the imagery MMB Artistic Associate Crystal Skelton used to describe steps.
“It’s still stuff I tell my students now, like talking about our hip bones as the headlights of our car, and making sure they’re staying facing forward all the time at the barre, and things like that,” Shearer said. “Young, young dancers can say, ‘I don’t know what my hip bones are, but I know what the headlights of a car look like.’”
MMB Artistic Director Jennifer Beasley recalled Shearer’s dedication, strong work ethic and her sponge-like eagerness to learn. “I always knew she could have a career in professional ballet if she wanted it. … I’m really excited to see her dance — I haven’t in a little while, and I’m most excited because our students get to meet her and take class and see that dancing professionally is attainable if that is something they want to pursue. Seeing her, being from here and from the school, is going to be great for them.”
Belhaven University Dance Department Chair and Dean of the School of Fine Arts Krista Bower welcomed the opportunity for her students, too, in classes, demonstrations and Q&A with McSween and Shearer. “That’s a great opportunity for the Belhaven dance students to hear about pathways to a professional career, and it’s wonderful for them to get to see a professional dance performance right here in Jackson.”
For Shearer, the tour’s hometown spotlight weaves artistry and memory in a reach back to her roots and a reach out to young dancers who may want to follow in her footsteps. Her self-described strengths and personality that come through in her dance easily trace back to her earliest intro to the art form. “I love to jump , so that’s one thing,” she said with a chuckle. “So, I’m very dynamic in that way.
“I really try and show the audience that I’m up there having fun, and I think that comes through onstage — that I love what I’m doing and I want other people to feel that love, too.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1955
Jan. 23, 1955
Leontyne Price became the first Black American to sing opera on television, appearing in the title role of Puccini’s “Tosca.” It was the culmination of a childhood dream for the Laurel, Mississippi, native after going on a school trip at age 14 and hearing Marian Anderson sing.
“The minute she came on stage, I knew I wanted to walk like that, look like that, and if possible, sound something near that,” she said.
When she performed alongside a White tenor, many NBC affiliates in the South refused to air the broadcast. But 11 years later, her hometown and many other radio stations across the South carried her live performance in “Antony and Cleopatra.”
With her soaring soprano, she became the first woman to open the new Met at Lincoln Center in 1966. She has received the Presidential Medal of Freedom, Kennedy Center Honors and 19 Grammy Awards. In 2017, she was inducted into The Performing Arts Hall of Fame at Lincoln Center alongside the likes of Louis Armstrong, Plácido Domingo and Yo-Yo Ma. Her interview in the documentary, The Opera House, prompted The New York Times to rave, “Leontyne Price, Legendary Diva, Is a Movie Star at 90.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Bill to revise law for low-income pregnant women passes first legislative hurdle
Low-income women would be able to access free prenatal care faster under a bill that passed the House Medicaid committee Wednesday.
The same law passed the full Legislature last year, but never went into effect due to a discrepancy between what was written into state law and federal regulations for the program, called Medicaid pregnancy presumptive eligibility.
House Medicaid Chair Missy McGee, R-Hattiesburg, author of the bill, revised last year’s bill to remove the requirement women show proof of income. She is hopeful the policy will garner the same support it did last year when it overwhelmingly passed both chambers.
“CMS (The Centers for Medicare and Medicaid Services) had some issues that they really did not approve of in our law, and after we talked it through we realized that the changes they wanted to make do no harm to the intent of the Legislature, do no harm to the law itself, do not add any costs to the fiscal note of the program,” McGee said during the committee meeting.
Changes include that a pregnant woman will only have to attest to her income – not provide paystubs – and will not have to provide proof of pregnancy.
McGee’s bill also makes changes to the time frame for presumptive Medicaid eligibility. Last year’s legislation said women would only be eligible for 60 days under the policy, with the hopes that by the end of those 60 days her official Medicaid application would be approved. Federal guidelines already have a different timeframe baked in, which state lawmakers have included in this bill.
The federal timeframe, now congruent with McGee’s bill, says a pregnant woman will be covered under presumptive eligibility until Medicaid approves her official application, however long that takes – as long as she submits a Medicaid application before the end of her second month of presumptive eligibility coverage.
“Let’s say a woman comes in for January 1 and is presumed eligible. She has until February 28 to turn her application in,” McGee said, adding that if Medicaid took a month to approve her application, the pregnant woman would continue to be covered through March.
Eligible women will be pregnant and have a household income up to 194% of the federal poverty level, or about $29,000 annually for an individual.
The bill does not introduce an additional eligibility category or expand coverage. Rather, it simply allows pregnant women eligible for Medicaid to get into a doctor’s office earlier. That’s notable in Mississippi, where Medicaid eligibility is among the strictest in the country, and many individuals don’t qualify until they become pregnant.
An expectant mother would need to fall under the following income levels to qualify for presumptive eligibility in 2025:
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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