Mississippi Today
Fitness trainer says former Gov. Bryant directed welfare-funded project, sues for emotional distress
Fitness trainer says former Gov. Bryant directed welfare-funded project, sues for emotional distress
Paul Lacoste, a fitness trainer and one of the retired athletes ensnared in Mississippi’s ongoing welfare scandal, is firing back at the state agency suing him.
In his recent counterclaim, Lacoste alleges that someone from the state invited him to a meeting in mid-2018 to discuss awarding him a contract, and that former Gov. Phil Bryant directed the welfare agency to hire Lacoste’s organization to conduct free fitness boot camps throughout the state.
At this time, the athlete had already been putting on classes for professionals and government officials in the Jackson metro area, which included then-Lt. Gov. Tate Reeves and many other lawmakers.
Lacoste’s organization, Victory Sports Foundation, eventually received $1.3 million in funds from the federal welfare program Temporary Assistance for Needy Families, or TANF, through a private nonprofit called Mississippi Community Education Center, auditors found in 2020.
“In return for those funds, Victory Sports and Lacoste conducted fitness boot camps, none of which were designed to achieve, or did achieve, any lawful TANF purpose,” MDHS’s complaint reads. “… Lacoste and Victory Sports Foundation owe MDHS a debt of $1,309,183.”
The payments led to criminal charges against nonprofit founder Nancy New and her son Zach New, who admitted that they defrauded the government by funneling welfare money to Lacoste’s program.
But Lacoste maintains that he never knew the money he received was meant to help poor families, and now he’s alleging the former governor and federal officials were in on it.
Lacoste joins a growing number of defendants in the civil case — including Nancy New, the former welfare director’s nephew Austin Smith and former NFL quarterback Brett Favre — who are implicating Bryant. The former governor has not faced civil or criminal charges.
Mississippi Today first reported on Reeves’ connections to the fitness contract, including meetings he had with both Lacoste and former welfare director John Davis, who is awaiting sentencing in the criminal welfare fraud case. The revelations prompted Smith’s attorney to demand Reeves be added as a defendant to the lawsuit.
But Lacoste’s recent motion doesn’t mention Reeves by name, only Bryant.
Because Reeves controls the welfare department, an agency under the governor’s office, he’s also in charge of the civil suit, which targets Lacoste along with dozens of others. Lacoste also endorsed Reeves for governor in 2019.
Lacoste’s counterclaim said he’s been “ridiculed throughout the State as someone who knowingly took money from indigent people in Mississippi.”
“He did no such thing,” the filing reads. “This damage has and continues to be suffered as the proximate result of the negligence by the State through MDHS (Mississippi Department of Human Services) when MDHS negligently paid for the fitness camps with TANF funds.”
Lacoste asked the judge, Hinds County Circuit Court Judge Faye Peterson, to enter a judgment against MDHS and award him damages for emotional distress among other things.
The athlete said he attended a meeting with Bryant and Davis in mid-2018. He said representatives from the federal government, whose policies govern how states can spend their welfare funds, were in attendance.
Lacoste said Bryant and Davis told him that they wanted to hire his organization as part of the state’s initiative to reduce obesity and improve wellness for Mississippians. Though they were engaging the welfare department, Lacoste’s filing does not say that they discussed reserving the program for poor families.
“At the conclusion of the meeting, the state and federal attendees in the meeting asked Lacoste if he would be interested in providing the services on a statewide basis,” Lacoste’s counterclaim reads. “Ultimately, Governor Bryant instructed John Davis to work with Lacoste, and VSF (Victory Sports Foundation) ultimately was selected to provide the services.”
The civil charges MDHS filed against Lacoste also discuss this meeting, but in a much different tone, and omitted the fact that Bryant and federal representatives were there.
“Lacoste facilitated a meeting with Davis, during which Lacoste proposed to MDHS Executive Director John Davis that Davis steer substantial grant funds to Victory Sports (and thus to Lacoste) in exchange for Lacoste’s continuing provision of ‘fitness camps’ to elected officials, their political staffs, and fee-paying participants,” reads MDHS’s amended civil complaint.
Lacoste, Davis and Reeves then met to discuss the fitness program in early 2019 – after Lacoste’s organization entered into the contract with New’s nonprofit but before it received the bulk of the money. The agency was in financial turmoil at that time and had recently notified grantees that their funding would be cut. MDHS subgrants are conditional on money being available, so a contract itself is not always a guarantee of payment.
Lacoste told Davis that Reeves wanted to meet alone, adding, “Tate wants us all to himself.”
Two days later, Davis instructed his deputy to make covert payments to New’s nonprofit to pay for the Lacoste contract, calling it “the Lt. Gov’s fitness issue,” referring to Gov. Reeves, lieutenant governor at the time of the scandal.
State Auditor Shad White, the former Bryant campaign manager whom Bryant originally appointed to his position, questioned the payments to the Victory Sports program because “no eligibility determination was made to verify participants were TANF eligible or needy.”
But a forensic audit released in October of 2021, which MDHS has used as the basis of its civil complaint, questioned the payments to Victory Sports Foundation because they were indicative of undue influence by Davis.
“John Davis’s influence was needed for Victory Sports to be awarded a grant from MCEC,” auditors wrote.
None of the audits mentioned Bryant’s or Reeves’ involvement in securing the contract or payments for Lacoste.
MDHS’s amended complaint alleges that Davis “created a culture of secrecy and fear within the agency to cover his illegal and fraudulent misuse of the public funds entrusted to his authority.”
“He fraudulently abused his position at MDHS to ingratiate himself with these former athletes by employing them or arranging to provide them with federal TANF grant funds,” it said.
Davis, who is cooperating with the prosecution in its ongoing investigation, has not made any public comments regarding the involvement of Bryant or Reeves.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1997
Dec. 22, 1997
The Mississippi Supreme Court upheld the conviction of white supremacist Byron De La Beckwith for the 1963 murder of Medgar Evers.
In the court’s 4–2 decision, Justice Mike Mills praised efforts “to squeeze justice out of the harm caused by a furtive explosion which erupted from dark bushes on a June night in Jackson, Mississippi.”
He wrote that Beckwith’s constitutional right to a speedy trial had not been denied. His “complicity with the Sovereignty Commission’s involvement in the prior trials contributed to the delay.”
The decision did more than ensure that Beckwith would stay behind bars. The conviction helped clear the way for other prosecutions of unpunished killings from the Civil Rights Era.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Medicaid expansion tracker approaches $1 billion loss for Mississippi
About the time people ring in the new year next week, the digital tracker on Mississippi Today’s homepage tabulating the amount of money the state is losing by not expanding Medicaid will hit $1 billion.
The state has lost $1 billion not since the start of the quickly departing 2024 but since the beginning of the state’s fiscal year on July 1.
Some who oppose Medicaid expansion say the digital tracker is flawed.
During an October news conference, when state Auditor Shad White unveiled details of his $2 million study seeking ways to cut state government spending, he said he did not look at Medicaid expansion as a method to save money or grow state revenue.
“I think that (Mississippi Today) calculator is wrong,” White said. “… I don’t think that takes into account how many people are going to be moved off the federal health care exchange where their health care is paid for fully by the federal government and moved onto Medicaid.”
White is not the only Mississippi politician who has expressed concern that if Medicaid expansion were enacted, thousands of people would lose their insurance on the exchange and be forced to enroll in Medicaid for health care coverage.
Mississippi Today’s projections used for the tracker are based on studies conducted by the Institutions of Higher Learning University Research Center. Granted, there are a lot of variables in the study that are inexact. It is impossible to say, for example, how many people will get sick and need health care, thus increasing the cost of Medicaid expansion. But is reasonable that the projections of the University Research Center are in the ballpark of being accurate and close to other studies conducted by health care experts.
White and others are correct that Mississippi Today’s calculator does not take into account money flowing into the state for people covered on the health care exchange. But that money does not go to the state; it goes to insurance companies that, granted, use that money to reimburse Mississippians for providing health care. But at least a portion of the money goes to out-of-state insurance companies as profits.
Both Medicaid expansion and the health care exchange are part of the Affordable Care Act. Under Medicaid expansion people earning up to $20,120 annually can sign up for Medicaid and the federal government will pay the bulk of the cost. Mississippi is one of 10 states that have not opted into Medicaid expansion.
People making more than $14,580 annually can garner private insurance through the health insurance exchanges, and people below certain income levels can receive help from the federal government in paying for that coverage.
During the COVID-19 pandemic, legislation championed and signed into law by President Joe Biden significantly increased the federal subsidies provided to people receiving insurance on the exchange. Those increased subsidies led to many Mississippians — desperate for health care — turning to the exchange for help.
White, state Insurance Commissioner Mike Chaney, Gov. Tate Reeves and others have expressed concern that those people would lose their private health insurance and be forced to sign up for Medicaid if lawmakers vote to expand Medicaid.
They are correct.
But they do not mention that the enhanced benefits authored by the Biden administration are scheduled to expire in December 2025 unless they are reenacted by Congress. The incoming Donald Trump administration has given no indication it will continue the enhanced subsidies.
As a matter of fact, the Trump administration, led by billionaire Elon Musk, is looking for ways to cut federal spending.
Some have speculated that Medicaid expansion also could be on Musk’s chopping block.
That is possible. But remember congressional action is required to continue the enhanced subsidies. On the flip side, congressional action would most likely be required to end or cut Medicaid expansion.
Would the multiple U.S. senators and House members in the red states that have expanded Medicaid vote to end a program that is providing health care to thousands of their constituents?
If Congress does not continue Biden’s enhanced subsidies, the rates for Mississippians on the exchange will increase on average about $500 per year, according to a study by KFF, a national health advocacy nonprofit. If that occurs, it is likely that many of the 280,000 Mississippians on the exchange will drop their coverage.
The result will be that Mississippi’s rate of uninsured — already one of the highest in the nation – will rise further, putting additional pressure on hospitals and other providers who will be treating patients who have no ability to pay.
In the meantime, the Mississippi Today counter that tracks the amount of money Mississippi is losing by not expanding Medicaid keeps ticking up.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1911
Dec. 21, 1911
Josh Gibson, the Negro League’s “Home Run King,” was born in Buena Vista, Georgia.
When the family’s farm suffered, they moved to Pittsburgh, and Gibson tried baseball at age 16. He eventually played for a semi-pro team in Pittsburgh and became known for his towering home runs.
He was watching the Homestead Grays play on July 25, 1930, when the catcher injured his hand. Team members called for Gibson, sitting in the stands, to join them. He was such a talented catcher that base runners were more reluctant to steal. He hit the baseball so hard and so far (580 feet once at Yankee Stadium) that he became the second-highest paid player in the Negro Leagues behind Satchel Paige, with both of them entering the National Baseball Hame of Fame.
The Hall estimated that Gibson hit nearly 800 homers in his 17-year career and had a lifetime batting average of .359. Gibson was portrayed in the 1996 TV movie, “Soul of the Game,” by Mykelti Williamson. Blair Underwood played Jackie Robinson, Delroy Lindo portrayed Satchel Paige, and Harvey Williams played “Cat” Mays, the father of the legendary Willie Mays.
Gibson has now been honored with a statue outside the Washington Nationals’ ballpark.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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