The Mississippi Department of Human Services is trying to recover millions of misspent welfare dollars that were intended to help some of the poorer people in the US.
More than $20 million in money from the Temporary Assistance for Needy Families anti-poverty program was misappropriated.
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, a suit was filed. Nancy New, 69, and Zachary New, 39, agreed to testify against others in what state Auditor Shad White has called Mississippi's largest public corruption case in the past two decades.
In early 2020, Nancy New, Zachary New, former Mississippi Department of Human Services executive director John Davis and three other people were charged in state court, with prosecutors saying welfare money had been misspent on items such as drug rehabilitation in Malibu, California, for a former pro wrestler.
Ted DiBiase Jr., his father and brother were also pro wrestlers.
The Million Dollar Man was Ted DiBiase Jr. According to the lawsuit, he ran Heart of David Ministries Inc., which received more than one million dollars in welfare grant money for mentorship, marketing and other services.
White demanded the repayment of $77 million of misspent welfare funds from several people and groups, including $1.1 million that was paid to the quarterback. There was no criminal wrongdoing on the part of Favre.
White said that Favre was paid for speeches but didn't show up. White said in October that he still owed $228,000 in interest. When he repaid the first half a million dollars, he said he didn't know the money came from welfare funds. He said his charity gave millions of dollars to poor children in Mississippi and Wisconsin.
The auditor's office turned over the demands for repayment of misspent welfare money to the Mississippi attorney general's office. White said in a statement that he knew the attorney general would file suit.
White said he was grateful the state was taking another step toward justice for the taxpayers.
According to the lawsuit filed Monday, one time, the largest individual outside investor and stockholder of Prevacus was the man who was now known as the man with the golden arm, the man with the vikings. The suit said that in December of last year, Prevacus CEO Jake VanLandingham was urged to ask Nancy New to use welfare grant money to invest in the company.
The suit said that an agreement was reached to spend welfare grant money after a Prevacus stock sales presentation at his home in January 2019.
The stock was in the names of Nancy New and Zach New but was also for the benefit of the two companies, according to the suit. The two companies are being sued for the improper payment of $2.1 million in welfare grant money.
A recording said the number was no longer in service after the Associated Press called it.
The purpose of the suit is to seek justice for the broken trust of the people of Mississippi and recover funds that were misspent.
The Department of Human Services was headed by Davis. Phil Bryant is a Republican. Davis retired in July and is awaiting trial on criminal charges.
In December 2020, DiBiase pleaded guilty to one count of making a false statement. He said in court documents that he received full payment for work that he did not complete. His sentencing was deferred after he agreed to pay $48,000 in restitution.
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