Subjects in MS Auditor Shad White’s book on Welfare Scandal challenge portrayals

When State Auditor Shad White told the Clarion Ledger in early August that his new book, “Mississippi Swindle” a personal telling of the $100 million Mississippi Welfare Scandal, was going to create waves, he wasn’t kidding.

He may not have considered, however, that some of those waves might challenge the validity of their portrayals in the book.

In more than 230 pages, White takes shots at several key players within the drama that has led local and federal prosecutors, state agencies and officials scrambling to identify, stop theft of, reclaim and prosecute those guilty of stealing Temporary Assistance to Needy Families funds.

Throughout the book, he highlights the work of his office, himself and others he worked with, and at times throws cold water on claims that former Republican Gov. Phil Bryant is as connected to the scandal as some believe.

White does not mention a Pulitzer Prize-winning series by Mississippi Today showing texts between Bryant and his former Mississippi Department of Human Services Director John Davis trying to influence and possibly broker a deal with a pharmaceutical company.

Of the people he calls out for bad behavior, animosity toward his office’s role, and alleged inaction in the case are most notably state GOP Chairman Mike Hurst and Attorney General Lynn Fitch.

Hurst and Fitch’s Chief of Staff Michelle Williams, who spoke to the Clarion Ledger about their portrayals in the book, both cast doubt on the accuracy of certain sections of the book, as well as question the motives and timing for the piece of work.

Below is what some of those mentioned in the “Mississippi Swindle” book have to say.

Mississippi GOP Chairman Mike Hurst

In his book, White describes Hurst as an egotistically motivated U.S. attorney who questioned White’s decisions at almost every point of their working together. He recounts conversations the two had behind closed doors before a meeting of investigators in which Hurst was passive aggressive with White’s decision to hand the case off to Hinds County District Attorney Jody Owens.

“Mike Hurst seemed more interested in re-litigating whether I should have given him the whole case in the beginning,” White writes in the book.

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The Clarion Ledger obtained text messages showing White’s efforts to set up a meeting with Hurt’s office to discuss what was at the time referred to as the “DHS case” in early 2020, before canceling the meeting and then bringing the case to Owens.

“The state auditor’s historical fiction novel may be entertaining, but it is certainly not truthful,” Hurst said in a written statement. “Everyone is entitled to their own opinion, but not their own facts. I have chosen over the last four years not to dwell on his decision to initially exclude the FBI and federal prosecutors from this investigation until after indictments were returned by the Hinds County District Attorney, thereby forgoing the great resources, experiences and tools of the U.S. Department of Justice and potentially limiting the scope and reach of the prosecution.”

White has for years defended the decision by saying he thought federal prosecutors would simply redo all of the state auditor’s work to identify the TANF theft and that they would take too long.

“The most important factor in the decision was speed,” White writes in the book. “I knew if we handed the case to the feds, it would be at least a year before anyone was indicted.”

In response to Hurst’s comments, White said Hurst was “not a good U.S. attorney.”

“If Mike had had his way, he would have slow-walked a prosecution and cost taxpayers millions of additional welfare dollars,” White said in a written statement to the Clarion Ledger.

Mississippi Attorney General Lynn Fitch

In the book, White paints Fitch as unambitious in regard to the case and at times points to her potential connections to defendants in the lawsuit between MDHS and those who took TANF money as a roadblock. Her office said he dripped information to them, slowing progress.

“I tried to quiet my mind when it was suggested the AG’s office was going light on Nancy because of a personal connection between New and Fitch,” White writes. “Fitch had spoken at the opening of one of Nancy’s facilities, so I knew they were acquainted.”

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White in more than five instances in the book calls out Fitch and her office for perceived delays or not taking action in the case, including to recoup property purchased with TANF dollars by the News, the family who misappropriated millions through the Mississippi Community Education Center.

Fitch’s office, through Williams, said in a written statement that White is not a serious auditor, made politically motivated decisions early on in the case and that White and Owens slowly shared evidence with the AG’s Office and others, pushing the case down the road.

“He says he wanted a show of bipartisanship, but perhaps it was because he didn’t see a Democrat district attorney who just left his job suing the State as a threat to his ambitions,” Williams writes in the statement. “When Shad White finally shared the evidence, it was in the kind of slow drip that makes successful litigation more complicated. Being methodical and strategic may seem boring to him, but to those of us who take our work seriously, it’s the only way that demonstrates respect for the people and the law.”

In response, White said her office is playing damage control.

“She knows the book tells the truth about how she failed to prosecute a soul, failed to seize any property bought with stolen welfare money, and forced the state to hire private attorneys to get the welfare money back because she won’t do her job,” White said.

Background on the Welfare Scandal

In 2020, White released an audit report showing gross misuse of TANF spending totaling more than $100 million. Since then, MDHS has filed a lawsuit to reclaim those misspent funds from people, including former Southern Miss and NFL football player Brett Favre, more than three dozen other individuals, companies and groups.

Two other defendants in the case, Nancy and Zachary New, pleaded guilty in 2022 to several charges, including bribing a public official, fraud against the government and wire fraud, among others.

Most of the crimes relating to the welfare scandal have a five-year statute of limitations for prosecution.

Clarion Ledger reporters Mary Boyte, Ross Reily and Hattiesburg American Lici Beveridge contributed to this story.

Grant McLaughlin covers state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com or 972-571-2335.