Today, Nancy New and Zach New have been charged in federal court for money laundering, ID theft and wire fraud. The indictments say the crimes were committed while Nancy served as the President of New Learning Resources and Zach was the Vice-President.
New Learning Resources is a for-profit entity doing business as the New Learning Resources School District. They have one school, New Summit School, which is located in Jackson, Mississippi.
Last year, the Mississippi State Auditor Shad White arrested John Davis, the former Director of the Mississippi Department of Human Services (DHS); former DHS employee Latimer Smith; Dr. Nancy New, owner and Director of the Mississippi Community Education Center (MCEC) and New Learning, Inc.; Zach New, Assistant Executive Director of MCEC; Anne McGrew, accountant for MCEC; and Brett DiBiase in connection with a multimillion-dollar embezzlement scheme.
The charges included a range of violations involving fraud and embezzlement. It was considered to be the largest public embezzlement case in the state’s history. The monies were suspected to come from the Temporary Assistance for Needy Families (TANF) program that is administered by the Department of Human Services. The investigation by the auditors office concluded that the defendants used a variety of business entities and schemes to defraud the taxpayers.
State Auditor Shad White made the following statement on the 17-count federal indictment unsealed today:
“I am proud of the joint work we have done with federal investigators that led to this indictment. We are continuing to work shoulder-to-shoulder with our federal partners to advance this case, and today is another step toward justice for the taxpayers.”
You can read the full indictment here: