JACKSON, Miss. (AP) – Mississippi Social Services Department sued retired NFL quarterback Brett Favre and three former professional wrestlers along with several other people and companies on Monday to try to recoup millions of dollars spent on social assistance to help some of the poorest people in the United States -in
The lawsuit alleges that defendants “spent” more than $ 20 million in anti-poverty money on temporary assistance for needy families.
The lawsuit was filed less than two weeks after a mother and son who ran a nonprofit group and an education company in Mississippi pleaded guilty to state criminal charges related to abuse. Nancy New, 69, and Zachary New, 39, have agreed to testify against others in what State Auditor Shad White called the largest public case of corruption in the Mississippi in two decades.
In early 2020, Nancy New, Zachary New, former executive director of the Mississippi Human Services Department, John Davis and three others were indicted in state court, and prosecutors said welfare money was improperly spent on items such as rehabilitation of drugs in Malibu, California, for former professional wrestler Brett DiBiase.
DiBiase is the defendant in a lawsuit filed Monday in Hinds District Court, as are his father and brother who were also professional wrestlers, Ted DiBiase Sr. and Ted “Teddy” DiBiase Jr.
Ted DiBiase Sr. was known as the “Million Dollar Man” while wrestling. He is a Christian evangelist and motivational speaker, and has led Heart of David Ministries Inc., which, according to the lawsuit, received $ 1.7 million in financial aid in 2017 and 2018 for mentoring, marketing and other services.
Last year, White demanded repayment of $ 77 million in misused social funds from several people and groups, including $ 1.1 million paid to Favre, who lives in Mississippi. Favre has not been charged with any criminal offense.
White said Favre was paid for the speeches, but did not show up. Favre returned the money, but White said in October that Favre still owed $ 228,000 in interest. In a post on Facebook when he repaid the first $ 500,000, Favre said he did not know that the money he received came from welfare funds. He also said his charity provided millions of dollars to poor children in Mississippi and Wisconsin.
A few months ago, the Audit Office submitted requests for the return of improperly spent Social Welfare money to the Mississippi Attorney General’s Office for execution. White said in a statement Monday that he knew the attorney general’s office would eventually file a lawsuit.
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“I applaud the team that filed this lawsuit and I am grateful that the state is taking another step toward justice for taxpayers,” White said. “We will continue to work together with our federal partners – who have had access to all our evidence for more than two years – to ensure that the case is fully investigated.”
A lawsuit filed Monday said Favre was once the largest outside investor and shareholder in Prevacus, a Florida-based company trying to develop a concussion remedy. The lawsuit alleges that in December 2018, Favre called on Prevacus CEO Jake VanLandingham to ask Nancy New to use the financial aid to invest in the company.
The lawsuit also alleges that Favre hosted a presentation of Prevacus stock sales in his home in January 2019, attended by VanLandingham, Davis, Nancy New, Zach New and Ted DiBiase Jr., and that an agreement was reached to spend “significant” cash donations to Prevacus and later to its corporate subsidiary PreSolMD Inc.
The lawsuit alleges that the shares were in the names of Nancy New and Zach New, but that there were also financial benefits from Favre, VanLandingham and the two companies. The lawsuit seeks a refund of $ 2.1 million in welfare money improperly paid to two companies in 2019.
The Associated Press on Monday called a number that was once listed for Favre Enterprises, and the recording states it is no longer in use.
Attorney General Lynn Fitch and Governor Tate Reeves said in a joint statement Monday: “Our purpose in this lawsuit is to seek justice for the breached trust of the Mississippi people and return the funds that were misused.”
In 2016, Davis was elected by the then governor to head the Human Services Department. Phil Bryant – who, like Reeves, Fitch and White, is a Republican. Davis retired in July 2019 and is awaiting trial for a criminal charge of abuse.
Brett DiBiase pleaded guilty in December 2020 on one count to making a false statement. In court documents, he said that he submitted the documents and that he received a full salary for the job he did not finish. He agreed to pay $ 48,000 in damages and his sentence was postponed.