The founder of a chain of private schools in Mississippi is stepping away from the business after her indictment in the largest alleged embezzlement scheme on state records, according to the company.
Nancy New was one of six people accused last week of stealing at least $4.15 million in Mississippi welfare money from a nonprofit she founded.
New also founded New Learning Resources, a private company that operates several private schools across the state. The company announced Wednesday that New was stepping down and an interim director would be announced shortly.
“It is our goal to continue providing the same innovative learning opportunities that our students, their parents, and the community deserve and expect without disruption. We have no plans to close or suspend operations of any schools,” the company said in a press release Wednesday. “The New family is currently transitioning out of the day-to-day operations,” the company said in a press release Wednesday.”
New is listed as the president and director of New Learning Resources in state records. Her son Zach New, who also one of the six people indicted, is the company’s vice president and secretary.
The alleged fraud and embezzlement involved the Mississippi Community Education Center, a nonprofit run by the News that largely acts as a middleman for distributing federal money.
New Learning Resources also receives millions in government money, though nowhere in public documents do prosecutors allege that any of the money is tainted.
New Learning Resources has received more than $12 million through the Mississippi Department of Education over the past five years, according to state records. That money is a mixture of private school vouchers, dyslexia scholarship students, and other state and federal money.
An MDE spokesman said the agency is conducting a precautionary review of millions that it has directed to New Learning Resources.
The schools operated by New Learning Resources include New Summit School in Jackson, North New Summit School in Greenwood, Oxford University Academy in Oxford, South New Summit School in Hattiesburg, Spectrum Academy in Jackson, and an online school called the New Learning Resources Online.
During the 2019 campaign, then-Lt. Gov. Tate Reeves filmed a campaign ad at the New Summit School in Jackson, according to Mississippi Today, which also reported that the News contributed $5,000 to his campaign.
Reeves addressed the campaign money and commercial at the Thursday news conference. He maintained the school does good work and its “teachers and students didn’t deserve to be caught up in all of this.”
The governor pledged to move any campaign money from the News or others involved in the alleged scheme to a separate account. The money will then be given back to taxpayers or to a charity. He said he had met Nancy New on “several occasions.”
“I don’t want the campaign to hold onto that money for a second longer than we have to,” Reeves said.
For more information see the Clarion Ledger’s report: https://www.clarionledger.com/story/news/politics/2020/02/12/mississippi-embezzlement-scandal-nancy-new-leaving-private-schools/4742004002/
