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Mississippi welfare funds scandal

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served, and in many instances did not set income level eligibility requirements for class attendees. Davis halted the department's competitive bidding process for acquiring contractors and over four years ordered the agency to grant the nonprofit organizations Mississippi Community Education Center and Family Resource Center of North Mississippi $ 65 million and $ 45 million, respectively, to fund the Families First of Mississippi program. The nonprofits received the money upfront and not as reimbursements for tasks performed, as was most common for other nonprofits who worked with the department as TANF subgrantees.
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staff and a meeting before signing an agreement with the organization. Text messages from November 2018 also revealed that Brett Favre, who had invested in the company since 2014, played a prominent role in connecting VanLandingham with Mississippi Governor Phil Bryant. Later messages Bryant not only agreed to use welfare money as a source for project grant money, but also sought to become an investor in Prevacus after his term as Governor ended. However, Bryant's ambition of becoming an investor in the company were thwarted by the arrests of John Davis and Nancy New.
197:, who initiated an investigation. Davis announced his retirement from the directorship the following month. On February 5, 2020, following the delivery of indictments in the Hinds County Circuit Court, special agents from the office of the State Auditor arrested several people whom they accused of embezzling TANF funds: John Davis, Department of Human Services employee Latimer Smith, Brett DiBiase, and Nancy New, Zach New, Anne McGrew, officials of the Mississippi Community Education Center. The defendants initially pleaded not guilty. 144:
companies Priceless Ventures LLC and Familiae Orientem were paid over $ 3 million by the organizations. During Davis' tenure, the Department of Human Services also awarded grants totaling over $ 2 million to the Heart of David Ministry, a nonprofit owned by Ted DiBiase. The Northeast Mississippi Football Coaches Association was revealed to have received $ 30,000 in welfare money in early 2019 as a donation "in consideration of ... having Ted DiBiase Jr. as banquet speaker."
92:'s involvement with the development and promotion of a concussion treatment drug, Prevasol, by the Prevacus corporation, came under scrutiny. The nonprofit Mississippi Community Education Center (MCEC) received $ 2.5 million in federal grant funds diverted from Mississippi's TANF welfare funds, as well as tens of millions in public funds as an element of the scheme. The Mississippi state auditor has termed the scheme "the largest public 62:. The federal government required the state of Mississippi to match what it spent of the grant with its own funds and stipulated that the state needed to document impoverished families who received direct cash assistance. It did not have strict reporting standards for how the state chose to use the grant otherwise. State audits regularly criticized the Department of Human Services for lax monitoring controls for federal grant spending. 119:
in the funds scheme, from the Department of Human Services would be used to divert attention and aid funding for the stadium proposal. Favre's daughter played for the school's volleyball team. In addition, Favre was paid $ 1.1 million in fees for speeches he never delivered and securing $ 2 million in public funds for a biotech venture which he already invested in.
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politically motivated. Anderson initially attributed the dismissal to Pigott's failure to inform his superiors about his plans to subpoena documents concerning the volleyball stadium from the University of Southern Mississippi before saying that the state needed a larger legal team. Pigott was replaced the following month by attorneys from the firm Jones Walker.
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In December 2018, Jake VanLandingham, the owner of a Florida-based pharmaceutical startup company that developed concussion treatments, Prevacus, was introduced to an official at the Mississippi Community Education Center by a Mississippi investor. VanLandingham had several phone calls with nonprofit
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would plead guilty in December 2020 to making fraudulent statements and paid $ 5,000 in restitution. As of September 2022, he was still not yet sentenced for his crime. In April 2022, Nancy and Zach New pleaded guilty to charges of bribery of a public official, fraud against the government, and mail
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Bryant became involved in the scheme when he alerted Mississippi State Auditor Shad White about possible fraud inside the Mississippi Department of Human Services. Text messages between Favre, Bryant, and New also revealed how the departure of John Davis, who himself was found to have been involved
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indicted MCEC founder, Nancy New, and her son Zach in the scheme. Favre had introduced MCEC's founders to top state welfare officials. A lawsuit filed against former Mississippi Governor Phil Bryant for his alleged role in the scandal resulted in the publication of a 2017 text message between Nancy
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In October 2021, the state auditor's office sent demand letters to various recipients of the misspent grant money, asking for repayment. In May 2022, the Department of Human Services filed a lawsuit against 38 defendants to claw back about $ 24 million in misspent funds. Former federal prosecutor
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appointed John Davis as the director of the Mississippi Department of Human Services. At the time, the agency was providing a record low number of recipients with direct cash assistance welfare in favor of other programs, such as job training classes. The department did not record who the classes
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On March 2, 2023, Brett DiBiase pleaded guilty to one federal charge of conspiracy to defraud the United States. On April 20, 2023, Ted DiBiase Jr. was indicted in federal court on one count of conspiracy to commit wire fraud, one count of conspiracy to commit theft concerning programs receiving
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later determined were not performed or did not serve to benefit needy Mississippians. Davis also frequently involved the DiBiases in department affairs and built a public agency motivational speaking program with Ted DiBiase Jr. that was funded by the nonprofits. From 2017 to 2019, DiBiase Jr.'s
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On September 2022, Davis was indicted in a federal court and pleaded guilty court to one count of conspiracy and one count of theft from a federally-funded program. He then pleaded guilty in state court to five counts of conspiracy and 13 counts of defrauding the government. The state court
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represented the department. The defendants included Brett Favre, Marcus Dupree, Paul Lacoste, and the DiBiases. On July 22, the director of the Department of Human Services, Bob Anderson, fired Pigott from his position as lead counsel on the state's lawsuit. Pigott alleged the decision was
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Following the arrests, the Department of Human Services announced it would require stringent documentation from subgrantees and began an internal inquiry to determine if any current agency employees were involved in the impropriety. In early May, White released the
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On June 21, 2019, following the conducting of an internal audit, concerned employees at the Department of Human Services informed Governor Bryant that agency funds may have been misspent. Bryant forwarded the information to State Auditor
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In August 2023, the Mississippi Supreme Court denied Brett Favre's request to be removed as a defendant the civil lawsuit. The decision came nearly four months after a Hinds County judge dismissed a similar request as well.
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The auditing investigations have found that the money was made available to several high profile figures for various purposes, including three retired athletes: former professional football star
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it just doesn’t match the man that I’ve known. Ted, is careful in the sense that he wouldn’t do that, he has a real love for God and his wife. He just wouldn’t do that in my honest opinion.
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On February 22, 2024 Ted's ex-agent opened up in an exclusive interview to discuss his thoughts on Ted's involvement where eWrestlingNews quoted him as saying, "
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New, operator of the nonprofit Mississippi Community Education Center, and Favre in September 2022. The message revealed former Mississippi governor
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Despite the involvement of federal funds, White did not inform any federal authorities about his office's investigation. U.S. Attorney for the
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federal funds, six counts of wire fraud, two counts of theft concerning programs receiving federal funds and four counts of money laundering.
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The Mississippi Community Education Center used TANF funds to provide $ 5 million towards the construction of a volleyball stadium at
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and some members of his government illegally diverted welfare funding to build a volleyball stadium at Favre's alma mater the
1011: 772: 567: 830: 1042: 169: 106: 439: 980: 181: 1131: 205: 374:"Concussion drug company ensnared in welfare fraud scandal plans relocation to south Mississippi 'medical city'" 1195: 605: 470: 1101:"Brett Favre will not be removed from civil lawsuit stemming from Mississippi welfare funds misuse scandal" 867: 504: 253: 800:"Former welfare agency head, others arrested for embezzling millions intended for poor Mississippians" 140: 20: 139:, and encouraged the two nonprofits to compensate them for various services which the office of the 1159:"She exposed how the nation's poorest state spent federal welfare money. Now she might go to jail" 307:"'Increasingly absurd expenditures': Newly-released audit questions $ 94 million in DHS spending" 505:"Former Gov. Phil Bryant helped secure welfare funding for USM volleyball stadium, texts reveal" 54:
annually received approximately $ 86.5 million from the United States federal government in a
743:"Bryant Texts: Favre, Partner Sought Trump's Help Funding Drug Company Named In TANF Scandal" 342: 673:"Exclusive: Ted DiBiase's Ex-Agent On Working With The WWE Legend, Ted Jr. Welfare Scandal" 8: 537:"In-Depth: How Brett Favre Secured $ 6 Million In Welfare Funds For A Volleyball Stadium" 409:"In-Depth: How Brett Favre Secured $ 6 Million In Welfare Funds For A Volleyball Stadium" 928:"Wrestler Brett DiBiase Pleads Guilty to Federal Charge in Mississippi Welfare Scandal" 610: 236: 173: 831:"Former auditors question whether Shad White was too close to investigate Phil Bryant" 708: 615: 575: 378: 270: 224:. The auditor's office deemed $ 94 million of the agency's spending questionable. 1012:"State fires attorney probing former Gov. Phil Bryant in welfare scandal lawsuit" 440:"Brett Favre's texts included in lawsuit over misspent Mississippi welfare funds" 132: 39: 773:"Phil Bryant had his sights on a payout as welfare funds flowed to Brett Favre" 42:
The reveal of the state investigation also triggered a federal investigation.
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arrested six people it accused of mishandling federal funds disbursed by the
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Gallagher, Dianne; Levenson, Eric; Sayers, Devon M. (September 14, 2022).
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United States District Court for the Southern District of Mississippi
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Scandal in the United States state of Mississippi that began in 2020
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sentenced him to 90 years in prison, with 58 of those years as a
115:] the media can find out where it came from and how much?" 646:"Explainer: Favre, other sports figures in welfare fraud case" 83: 606:"Mississippi Welfare Scandal Spreads Well Beyond Brett Favre" 180:, and funded a fitness program run by former football player 231:
fraud. Nancy New would also pleaded guilty to racketeering.
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Davis was close friends with retired professional wrestlers
954:"Former wrestler charged in Mississippi welfare fraud case" 870:. Mississippi Office of State Auditor. September 22, 2022. 273:, the outlet which broke the story, and its lead reporter, 111: 1206:
Political corruption investigations in the United States
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Pittman, Ashton; Pittman, William (September 16, 2022).
437: 187: 736: 734: 731: 70: 1211:Political corruption scandals in the United States 707:Ramseth, Luke; Bologna, Giacomo (April 19, 2020). 341:Bologna, Giacomo; Ramseth, Luke (April 19, 2020). 1156: 741:Pittman, Ashton; Pittman, William (May 4, 2023). 1187: 766: 764: 1157:Dilanian, Ken; Strickler, Laura (2024-07-02). 740: 706: 543:. Mississippi Journalism and Education Group. 534: 340: 269:Former governor Phil Bryant subsequently sued 868:"John Davis Pleads Guilty in Welfare Scandal" 862: 860: 858: 856: 761: 893:Pettus, Emily Wagster (September 22, 2022). 637: 829:Pender, Geoff; Wolfe, Anna (May 12, 2022). 828: 702: 700: 698: 603: 84:Brett Favre and Mississippi state officials 903:. NewsHour Productions. Associated Press. 853: 336: 334: 332: 75:On January 11, 2016, Mississippi Governor 643: 530: 528: 526: 1098: 952:Pettus, Emily Wagster (April 20, 2023). 695: 300: 298: 296: 294: 292: 290: 96:case in state history". A grand jury in 52:Mississippi Department of Human Services 25:Mississippi Department of Human Services 1201:Federal assistance in the United States 1053:from the original on September 20, 2022 1022:from the original on September 20, 2022 991:from the original on September 20, 2022 925: 907:from the original on September 22, 2022 810:from the original on September 20, 2022 565: 547:from the original on September 19, 2022 511:from the original on September 23, 2022 498: 496: 450:from the original on September 20, 2022 353:from the original on September 24, 2022 329: 317:from the original on September 20, 2022 56:Temporary Assistance for Needy Families 1188: 960:from the original on November 24, 2023 951: 892: 791: 709:"Emails tie Bryant, Farve to Prevacus" 670: 523: 468: 419:from the original on 18 September 2022 403: 401: 343:"How a drug company got welfare money" 1138:from the original on December 2, 2023 1129: 1071: 1040: 1009: 978: 874:from the original on October 29, 2022 797: 770: 683:from the original on 25 February 2024 652:from the original on October 19, 2022 502: 481:from the original on October 31, 2022 371: 304: 287: 264: 1111:from the original on August 14, 2023 1099:Gonzalez, Isabel (August 10, 2023). 1080:from the original on August 12, 2023 749:from the original on October 4, 2023 644:Hunzinger, Erica (October 3, 2022). 493: 246: 188:Auditing and criminal investigations 19:In February 2020, the office of the 841:from the original on August 8, 2022 671:Lowson, Thomas (22 February 2024). 398: 13: 597: 503:Wolfe, Anna (September 13, 2022). 252:Brad Pigott and the office of the 176:, owned by former football player 170:University of Southern Mississippi 107:University of Southern Mississippi 14: 1222: 779:from the original on July 3, 2024 719:from the original on July 3, 2024 386:from the original on July 3, 2022 122: 798:Wolfe, Anna (February 5, 2020). 604:MacFarquhar, Neil (2022-09-22). 469:Burgis, Ben (October 31, 2022). 71:Department funding of nonprofits 1171:from the original on 2024-07-02 1150: 1123: 1092: 1072:Selbe, Nick (August 10, 2023). 1065: 1041:Wolfe, Anna (August 18, 2022). 1034: 1003: 972: 945: 934:from the original on 2023-03-16 919: 886: 822: 664: 626:from the original on 2022-09-22 586:from the original on 2022-09-27 220:of the department for the 2019 206:Federal Bureau of Investigation 1130:Wolfe, Anna (April 24, 2023). 1049:. Nonprofit Mississippi News. 1018:. Nonprofit Mississippi News. 987:. Nonprofit Mississippi News. 926:Pittman, Ashton (2023-03-02). 837:. Nonprofit Mississippi News. 806:. Nonprofit Mississippi News. 559: 462: 431: 372:Wolfe, Anna (April 10, 2020). 365: 313:. Nonprofit Mississippi News. 65: 1: 1010:Wolfe, Anna (July 22, 2022). 771:Wolfe, Anna (April 4, 2023). 566:Vrentas, Jenny (2022-09-26). 280: 45: 254:Mississippi Attorney General 7: 979:Wolfe, Anna (May 9, 2022). 305:Wolfe, Anna (May 4, 2020). 154: 10: 1227: 930:. Mississippi Free Press. 745:. Mississippi Free Press. 210:federal inspector general 141:Mississippi State Auditor 21:Mississippi State Auditor 163: 277:, alleging defamation. 50:By the late 2010s, the 1076:. Sports Illustrated. 541:Mississippi Free Press 413:Mississippi Free Press 1134:. Mississippi Today. 775:. Mississippi Today. 507:. Mississippi Today. 415:. 17 September 2022. 34:and former wrestlers 1196:Crime in Mississippi 956:. Associated Press. 648:. Associated Press. 715:. pp. 1A, 6A. 713:The Clarion-Ledger 677:eWrestlingNews.com 611:The New York Times 572:The New York Times 347:The Clarion-Ledger 265:Defamation lawsuit 237:suspended sentence 174:Flora, Mississippi 131:and his two sons, 1047:Mississippi Today 1016:Mississippi Today 985:Mississippi Today 835:Mississippi Today 804:Mississippi Today 379:Mississippi Today 311:Mississippi Today 271:Mississippi Today 247:Civil proceedings 1218: 1180: 1179: 1177: 1176: 1154: 1148: 1147: 1145: 1143: 1127: 1121: 1120: 1118: 1116: 1096: 1090: 1089: 1087: 1085: 1069: 1063: 1062: 1060: 1058: 1038: 1032: 1031: 1029: 1027: 1007: 1001: 1000: 998: 996: 976: 970: 969: 967: 965: 949: 943: 942: 940: 939: 923: 917: 916: 914: 912: 890: 884: 883: 881: 879: 864: 851: 850: 848: 846: 826: 820: 819: 817: 815: 795: 789: 788: 786: 784: 768: 759: 758: 756: 754: 738: 729: 728: 726: 724: 704: 693: 692: 690: 688: 668: 662: 661: 659: 657: 641: 635: 634: 632: 631: 601: 595: 594: 592: 591: 563: 557: 556: 554: 552: 532: 521: 520: 518: 516: 500: 491: 490: 488: 486: 466: 460: 459: 457: 455: 435: 429: 428: 426: 424: 405: 396: 395: 393: 391: 369: 363: 362: 360: 358: 338: 327: 326: 324: 322: 302: 1226: 1225: 1221: 1220: 1219: 1217: 1216: 1215: 1186: 1185: 1184: 1183: 1174: 1172: 1155: 1151: 1141: 1139: 1128: 1124: 1114: 1112: 1097: 1093: 1083: 1081: 1070: 1066: 1056: 1054: 1039: 1035: 1025: 1023: 1008: 1004: 994: 992: 977: 973: 963: 961: 950: 946: 937: 935: 924: 920: 910: 908: 891: 887: 877: 875: 866: 865: 854: 844: 842: 827: 823: 813: 811: 796: 792: 782: 780: 769: 762: 752: 750: 739: 732: 722: 720: 705: 696: 686: 684: 669: 665: 655: 653: 642: 638: 629: 627: 602: 598: 589: 587: 564: 560: 550: 548: 533: 524: 514: 512: 501: 494: 484: 482: 467: 463: 453: 451: 436: 432: 422: 420: 407: 406: 399: 389: 387: 370: 366: 356: 354: 339: 330: 320: 318: 303: 288: 283: 267: 249: 190: 166: 157: 133:Ted DiBiase Jr. 125: 86: 73: 68: 48: 40:Ted DiBiase Jr. 17: 12: 11: 5: 1224: 1214: 1213: 1208: 1203: 1198: 1182: 1181: 1149: 1122: 1091: 1064: 1033: 1002: 971: 944: 918: 885: 852: 821: 790: 760: 730: 694: 663: 636: 596: 558: 522: 492: 461: 430: 397: 364: 349:. p. 6A. 328: 285: 284: 282: 279: 266: 263: 248: 245: 189: 186: 165: 162: 156: 153: 124: 123:DiBiase family 121: 85: 82: 72: 69: 67: 64: 47: 44: 15: 9: 6: 4: 3: 2: 1223: 1212: 1209: 1207: 1204: 1202: 1199: 1197: 1194: 1193: 1191: 1170: 1166: 1165: 1160: 1153: 1137: 1133: 1126: 1110: 1106: 1102: 1095: 1079: 1075: 1068: 1057:September 20, 1052: 1048: 1044: 1037: 1026:September 20, 1021: 1017: 1013: 1006: 995:September 20, 990: 986: 982: 975: 959: 955: 948: 933: 929: 922: 911:September 23, 906: 902: 901: 896: 889: 873: 869: 863: 861: 859: 857: 840: 836: 832: 825: 814:September 20, 809: 805: 801: 794: 778: 774: 767: 765: 748: 744: 737: 735: 723:September 20, 718: 714: 710: 703: 701: 699: 682: 678: 674: 667: 651: 647: 640: 625: 621: 617: 613: 612: 607: 600: 585: 581: 577: 573: 569: 562: 551:September 20, 546: 542: 538: 531: 529: 527: 510: 506: 499: 497: 480: 476: 472: 465: 449: 445: 441: 434: 418: 414: 410: 404: 402: 385: 381: 380: 375: 368: 357:September 24, 352: 348: 344: 337: 335: 333: 321:September 20, 316: 312: 308: 301: 299: 297: 295: 293: 291: 286: 278: 276: 272: 262: 258: 255: 244: 240: 238: 232: 229: 228:Brett DiBiase 225: 223: 219: 213: 211: 207: 203: 198: 196: 185: 183: 179: 178:Marcus Dupree 175: 171: 161: 152: 150: 145: 142: 138: 137:Brett DiBiase 134: 130: 120: 116: 114: 113: 108: 104: 99: 95: 91: 81: 78: 63: 61: 57: 53: 43: 41: 37: 36:Brett DiBiase 33: 28: 26: 22: 1173:. 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Index

Mississippi State Auditor
Mississippi Department of Human Services
Brett Favre
Brett DiBiase
Ted DiBiase Jr.
Mississippi Department of Human Services
Temporary Assistance for Needy Families
block grant
Phil Bryant
Brett Favre
embezzlement
Hinds County
Phil Bryant
University of Southern Mississippi
sic
Ted DiBiase
Ted DiBiase Jr.
Brett DiBiase
Mississippi State Auditor
University of Southern Mississippi
Flora, Mississippi
Marcus Dupree
Paul Lacoste
Shad White
United States District Court for the Southern District of Mississippi
Federal Bureau of Investigation
federal inspector general
Single Audit
fiscal year
Brett DiBiase

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