Accountant Anne McGrew gets one-year sentence in Mississippi welfare scheme

Hinds County Circuit Judge Adrienne Wooten sentenced Anne McGrew, 69, to one year in prison Monday for her role in Mississippi’s welfare fraud scheme. McGrew, the accountant for the Mississippi Community Education Center, pleaded guilty in 2021 to conspiracy, related to moving federal funds and altering records to conceal illegal transfers, according to court records.

The scheme involved misappropriating tens of millions of dollars from a federal anti-poverty program. Funds were diverted to benefit friends, family, and high-profile athletes, prosecutors said. McGrew faced a maximum sentence of five years but was sentenced to one year, with the possibility of parole after serving about three months under state guidelines, followed by four years of house arrest.

During the sentencing, Wooten questioned both sides about why McGrew continued to cover for her boss, Nancy New, the founder of the nonprofit, despite knowing money was being misused. Assistant District Attorney Jamie McBride explained that New used federal grant money to keep her now-closed private school open. McGrew said she believed she was doing her job and that New was controlling. “I thought we were doing some good,” McGrew told the court.

McGrew also helped authorities build their case against higher-level scheme members, including New and former Mississippi Department of Human Services Director John Davis. District Attorney Jody Owens credited her cooperation with helping expose the fraud, noting she did not benefit financially from the scheme. McGrew has been at home with an ankle monitor since her plea, but Wooten clarified that this supervision did not count as time served toward her sentence.

Character witnesses, including McGrew’s brother-in-law, described her as unassuming and rule-following. He argued she should not have held the CPA role, but the judge responded that personality was not a factor in sentencing. Wooten emphasized that the case was different from typical embezzlement, as it involved victims who were deprived of welfare benefits due to the misappropriation. The court’s focus was on making sure funds reached those in need.

The sentencing of McGrew and six others was delayed until the federal investigation concluded. The case also involved Ted “Teddy” DiBiase Jr., a former pro wrestler, who was acquitted in March after being accused of misusing over $3 million in welfare funds. The district attorney’s office has been in contact with federal officials regarding sentencing schedules for the remaining defendants, who include several who pleaded guilty to federal or state charges. McGrew was the only defendant charged solely by the state.

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