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State adds USM volleyball project to effort to recoup misspent welfare funds

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State adds USM volleyball project to effort to recoup misspent welfare funds

After months of national coverage about how former NFL quarterback Brett Favre solicited welfare money to build a volleyball stadium at his alma mater, the state of Mississippi has filed civil charges attempting to recoup the money.

The lawsuit alleges that Favre “understood that grant funds provided by MDHS could not be used for brick-and-mortar construction” — the first time Favre has officially faced this charge.

The new allegation comes just one week after Favre filed a punchy motion to dismiss the welfare department’s civil charges against him.

Mississippi Department of Human Services filed its initial civil suit, the agency’s response to a multi-million dollar fraud and embezzlement scandal, in May. The initial complaint targeted Favre for $1.1 million he received under a “vague, illusory promise that Favre make appearances or record PSAs” and $2.1 million the athlete helped secure for a pharmaceutical venture.

But the complaint did not initially include the University of Southern Mississippi Athletic Foundation, which took $5 million in welfare money to build a volleyball stadium — billed as a “wellness center” — on its campus.

The amended complaint, filed Monday, adds the athletic foundation and sheds more light on the roles of Favre and other state officials in the scheme, including university officials who are not included as defendants. Former welfare director John Davis and nonprofit founder Nancy New have both pleaded guilty to several fraud and bribery charges in connection with the welfare scandal.

“Despite the Foundation’s expressing worries about ‘rais[ing] negative concerns’ and being ‘scared to death,’ Brett Favre urged Nancy New that it was necessary for the Foundation to ‘utilize you guys [John Davis and Nancy New] in every way,'” the filing reads.

While the new complaint increases Favre’s potential liability by $5 million, it removed the $1.1 million claim against Favre in the initial complaint because he repaid that amount to the state in 2020 and 2021.

The new filing also adds a lobbyist, two former MDHS attorneys and a virtual reality company as defendants in the lawsuit.

It does not mention former Gov. Phil Bryant or the discussions the governor had with Favre about finding funding for the volleyball stadium or Prevacus, the company purportedly developing a drug to treat concussions.

“Governor Bryant was both aware of and supported MCEC’s payments to Prevacus at issue in this lawsuit, as well as its $5 million payment to Southern Miss in connection with the construction of a wellness center,” Favre alleged in his most recent motion.

The lawsuit still names fitness trainer Paul Lacoste and his organization Victory Sports Foundation, which received $1.3 million under what former MDHS leader Davis described as “the Lt. Gov’s fitness issue,” referring to then-Lt. Gov. Tate Reeves. Now governor and in control of the suit, Reeves is also not mentioned in the amended complaint.

In the new complaint, MDHS added the following new defendants:

  • USM Athletic Foundation.
  • N3 Holdings, the company that Nancy New and her sons Zach and Jess New owned and allegedly used to personally invest in Favre’s pharmaceutical start-up companies called Prevacus and PreSolMD.
  • Lobaki, Inc. and Lobaki Foundation, a virtual reality company that received welfare funding to prop up a VR training academy.
  • JTS Enterprises, the company formed by Brian Jeff Smith, John Davis’ brother-in-law, through which he received welfare funds.
  • William Longwitz, former lawmaker and lobbyist who received nearly $320,000 in welfare funds to lobby on behalf of New’s organization.
  • Inside Capitol, LLC, Will Longwitz’s lobbying firm.
  • Jacob Black, former MDHS attorney.
  • Garrig Shields, former MDHS attorney who left the agency to work for New’s nonprofit.
  • William, Weiss, Hester and Co., PLLC, the accounting firm that conducted regular audits of the New nonprofit.

The initial complaint sought to claw back a total of about $24 million. The new complaint asserts that the two nonprofits through which most of the money was misspent — Mississippi Community Education Center and Family Resource of North Mississippi — breached their agreements with MDHS and should have to return their entire awarded amounts, $39.3 million for MCEC and $38 million for FRC. Neither nonprofit has assets totaling anywhere near those amounts.

Former U.S. Attorney Brad Pigott, the private attorney MDHS first hired to bring the suit, planned to include the volleyball project in the complaint, but Reeves’ office instructed him to remove it before filing. In July, after Pigott subpoenaed the athletic foundation for its communication with former Gov. Bryant, among other individuals, Reeves’ appointed welfare director Bob Anderson fired the attorney. At that time, Reeves said the agency was still considering more potential defendants to add to the suit, including the athletic foundation.

“Governor Tate Reeves tasked me with correcting the path of MDHS,” Anderson said in a statement Monday. “As part of that process, MDHS has been working hard to restore trust and put in place numerous internal controls to ensure that misspending is not repeated in the future. The rest of the task involves recovering and returning to the taxpayers the millions of dollars in misspent funds which were intended to benefit Mississippi’s needy families. We continue that task with this motion to file an amended civil complaint.”

The amended complaint alleges that in April of 2017, Favre made a “handshake agreement” with USM, where his daughter played volleyball, to personally guarantee the funds to construct a new facility for the team. He then contributed $150,000 worth of autographed merchandise and began soliciting donations from various people and companies, including the Kohler family.

“Favre, however, was unable to convince his friends and connections to donate enough money to meet his obligation to fund the construction of the volleyball facility, and he did not want to pay the costs out of his own pocket,” the complaint reads.

Favre’s attorney Eric Herschmann rejected the assertion that the athlete personally committed funds to the project, pointing to emails from USM’s athletic director at the time, Jon Gilbert, that say Favre agreed to fundraise for the project.

In July of 2017, Gilbert introduced Favre to nonprofit founder Nancy New, Favre said in his recent filing.

New, who sat on the athletic foundation board alongside Favre, and another nonprofit operator Christi Webb had just become the recipients of a massive cash flow from the welfare department. At the time, New’s nonprofit Mississippi Community Education Center already had existing leases with USM, including for a large suite at the football stadium, where the nonprofit could invite guests to watch the games.

Shortly after connecting with New, Favre met at USM with her, Gilbert, Davis, MDHS attorney Garrig Shields and former WWE wrestler Teddy DiBiase to discuss using MDHS funds on the volleyball construction.

“John Davis discussed his plan to ‘do good things for USM’ and ‘give them 4 mil’ with Christi Webb and Nancy New, both of whom enthusiastically agreed. John Davis suggested that Nancy New tell Jon Gilbert that the facility should be named after Favre,” the complaint reads. “The Foundation told Brett Favre that they were ‘very leary [sic] of accepting such a large grant,’ and suggested ‘trying to find a way for John [Davis] to allocate money to an entity that could then give to us that would pay for brick and mortar.’ Brett Favre also told Nancy New he ‘passed [this] same info[rmation] to John [Davis] and of course he [John Davis] sent back we will find a way to make it work.'”

The lawsuit alleges attorneys Shields and Black were instrumental in crafting the sham lease agreement, as well as facilitating several other allegedly fraudulent purchases.

Black was one of the employees who gathered and brought information about Davis’ alleged fraud to Gov. Bryant in June of 2019.

Favre denies any wrongdoing in the volleyball project. Longwitz, Black, Shields and a spokesperson for USM did not return calls to Mississippi Today on Monday.

“While he had helped raise funds for the facility and thereby met Davis and New, Favre, as with the transfers complained of in the Complaint, did absolutely nothing wrong in connection with the Wellness Center,” Favre’s Nov. 28 motion reads. “During Favre’s fundraising efforts, in July 2017, the Southern Miss athletic director introduced Favre to New, a Southern Miss Athletic Foundation board member, as someone who could assist Favre with the fundraising. New was well connected with numerous Mississippi officials, including Davis and then-Governor Bryant, and close friends with Governor Bryant’s wife Deborah Bryant.”

Tom Duff, current president of the Institutions of Higher Learning Board of Trustees and one of the board members who signed off on the $5 million MDHS grant to build the volleyball stadium in 2017, told Mississippi Today last month that he believed USM should return the funds.

“MDHS’s proposed amended complaint, in which MDHS has dropped its original $1.1 million claim against Brett Favre, while adding new groundless allegations about him, is as frivolous as its original complaint,” Herschmann said in a statement Monday after the state’s latest filing. “Again, MDHS omits facts key to these new allegations—including that the Mississippi Attorney General signed off on the transfers of funds from MDHS to another state entity, the University of Southern Mississippi, all with the full knowledge and consent of the Governor and other State officials.  That a private citizen, like non-lawyer Brett Favre, could have any liability under these circumstances is baseless.  Accordingly, we will oppose, on Brett’s behalf, MDHS’s motion to amend the complaint to the extent it adds these new groundless allegations. “

Editor’s note: Mississippi Today Editor-in-Chief Adam Ganucheau’s mother signed off on the language of a lease agreement to construct a University of Southern Mississippi volleyball stadium. Read more about that here.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Stories Videos

Mississippi Stories: Michael May of Lazy Acres

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mississippitoday.org – rlake – 2025-01-21 14:51:00

In this episode of Mississippi Stories, Mississippi Today Editor-at-Large Marshall Ramsey takes a trip to Lazy Acres. In 1980, Lazy Acres Christmas tree farm was founded in Chunky, Mississippi by Raburn and Shirley May. Twenty-one years later, Michael and Cathy May purchased Lazy Acres. Today, the farm has grown into a multi seasonal business offering a Bunny Patch at Easter, Pumpkin Patch in the fall, Christmas trees and an spectacular Christmas light show.  It’s also a masterclass in family business entrepreneurship and agricultural tourism.

For more videos, subscribe to Mississippi Today’s YouTube channel.


This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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On this day in 1921

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mississippitoday.org – Jerry Mitchell – 2025-01-21 07:00:00

Jan. 21, 1921

George Washington Carver Credit: Wikipedia

George Washington Carver became one of the first Black experts to testify before Congress. 

His unlikely road to Washington began after his birth in Missouri, just before the Civil War ended. When he was a week old, he and his mother and his sister were kidnapped by night raiders. The slaveholder hired a man to track them down, but the only one the man could locate was George, and the slaveholder exchanged a race horse for George’s safe return. George and his brother were raised by the slaveholder and his wife. 

The couple taught them to read and write. George wound up attending a school for Black children 10 miles away and later tried to attend Highland University in Kansas, only to get turned away because of the color of his skin. Then he attended Simpson College in Indianola, Iowa, before becoming the first Black student at what is now Iowa State University, where he received a Master’s of Science degree and became the first Black faculty member. 

Booker T. Washington then invited Carver to head the Tuskegee Institute’s Agriculture Department, where he found new uses for peanuts, sweet potatoes, soybeans and other crops. 

In the past, segregation would have barred Carver’s testimony before Congress, but white peanut farmers, desperate to convince lawmakers about the need for a tariff on peanuts because of cheap Chinese imports, believed Carver could captivate them — and captivate he did, detailing how the nut could be transformed into candy, milk, livestock feed, even ink. 

“I have just begun with the peanut,” he told lawmakers. 

Impressed, they passed the Fordney-McCumber Tariff of 1922. 

In addition to this work, Carver promoted racial harmony. From 1923 to 1933, he traveled to white Southern colleges for the Commission on Interracial Cooperation. Time magazine referred to him as a “Black Leonardo,” and he died in 1943. 

That same year, the George Washington Carver Monument complex, the first national park honoring a Black American, was founded in Joplin, Missouri.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Legislative recap: 2025 tax cut battle has been joined

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mississippitoday.org – Geoff Pender – 2025-01-20 12:00:00

After relatively brief debate and questioning given its magnitude, the state House passed the first meaningful legislation of the new session: House Bill 1, a measure that would eliminate the state income tax, trim taxes on non-prepared food and raise sales and gasoline taxes.

It would mark a sea change in state tax structure, a shift from income to consumption taxation.

“We are at a place where we can finally tell the hard-working people of Mississippi we can eliminate the tax on work,” House Ways and Means Chairman Trey Lamar, HB1’s author, told his colleagues.

The measure passed the House 88-24. It gained some Democratic support in the supermajority Republican House, with nine Democrats voting in favor, 24 against and 12 voting present.

The proposal garnered some bipartisan support because it includes at least a couple of items Democratic lawmakers have championed in the past: A gasoline tax to help fix crumbling roadways, and a reduction in the “grocery” tax, or the sales tax levied on unprepared food, of which Mississippi has the highest overall rate in the nation.

It still met with some Democratic opposition in part because it is a sea change toward more “regressive” taxation. Proponents say this is just, people should pay more for state services they use, such as roadways, and for things they buy as opposed to taxing income. Opponents say this places a proportionately higher tax burden on people of modest means.

“I would say the people hurt the most with this would be working people who have to put gas in their car to go to work or those who have to purchase materials to do a job,” House Democratic Leader Robert Johnson said.

Beyond that concern, opponents or skeptics worry that the foundation of the proposed tax overhaul would be built on shifting sands — a state economy that has been so rosy primarily from the federal government dumping billions of dollars in pandemic spending into Mississippi. With the federal spigot being cut off, some worry, the state economy could slump, and the massive tax cuts in this new plan could provide a state budget crisis, of which Mississippi has much experience, and underfunding of crucial services such as schools, roads, health care and law enforcement.

The largest hurdle Republican House leaders face in seeing their tax plan through to law is not in garnering bipartisan support. It’s internecine disagreement with the Senate Republican leadership, which still appears to harbor abovementioned concerns about overhauling tax structure in uncertain economic times and betting on growth to cover massive tax cuts.

Senate leaders have said they want to enact more tax cuts, but their plan has not yet been released. Lt. Gov. Delbert Hosemann has provided some details of what he wants to see, but it would appear he wants a more cautious approach on cuts. He has not publicly opined on the tax increases in the House plan.


“Have you ever worn a belt and suspenders, lady? It’s a belt and suspenders approach.” — Rep. Trey Lamar, R-Senatobia, to Rep. Omeria Scott, D-Laurel, during floor debate on Lamar’s bill to eliminate the state income tax and raise other taxes.

“No. I have not worn a belt and suspenders. I don’t know anyone who has worn a belt and suspenders,” Scott replied.

House will renew push to legalize mobile sports betting

House Gaming Committee Chairman Casey Eure, R-Saucier, told Mississippi Today he plans on taking another crack at legalizing mobile sports betting in the state. In 2024, the House and Senate passed versions of legislation to permit online sports betting, but never agreed on a final proposal. Some lawmakers raised concerns that gambling platforms would have no incentive to partner with smaller casinos, and most of the money would instead flow to the Mississippi Gulf Coast’s already bustling casinos. Proponents say legalization would undercut the influence of illicit offshore sports betting platforms.

“I’ve been working on this bill for many years and I’m just trying to satisfy any concerns that the Senate may have so we can pass this and start collecting the tax dollars that the state deserves and not allowing everyone to place bets with these offshore accounts,” Eure said. “I feel like the state is losing between $40-$80 million a year in tax revenue.”

Sports wagering has been permitted in the state for years, but online betting has remained illegal amid fears the move could harm the bottom line of the state’s brick-and-mortar casinos. Mobile sports betting is legal in 30 states and Washington, D.C.,  according to the American Gaming Association. — Michael Goldberg


Hosemann makes Senate committee chair changes

Republican Lt. Gov. Delbert Hosemann last week named new chairmen of committees, after former state Sen. Jenifer Branning was sworn into office as a new justice on the Mississippi Supreme Court. 

Sen. Chuck Younger, a Republican from Columbus, previously led the Senate Agriculture Committee and will replace Branning as chairman of the Transportation Committee. Sen. Neil Whaley, a Republican from Potts Camp, previously led the Senate Wildlife, Fisheries and Parks Committee, but will now lead the Senate Agriculture Committee. 

Here are the other changes to Senate committees: 

Sen. Ben Suber, a Republican from Bruce, will be the new chairman of the Senate Wildlife, Fisheries and Parks Committee 

Sen. Bart Williams, a Republican from Starkville, is the new chairman of the Senate Public Property Committee

Sen. Scott DeLano, a Republican from Gulfport, will lead the Senate Technology Committee 

Sen. Robin Robinson, a Republican from Laurel, will chair the Senate Labor Committee 

Sen. Angela Turner Ford, a Democrat from West Point, will lead the Senate Drug Policy Committee.  — Taylor Vance


What’s in a name? Democratic Rep. Scott hopes GOP majority will pass ‘Donald J. Trump Act’ bills

Perhaps tired of seeing many measures she authors ignored or shot down in flames by the Republican supermajority in the Mississippi Legislature, Democratic Rep. Omeria Scott of Laurel is trying a new strategy: naming bills after Republican President-elect Trump.

For this session, Scott has authored: House Bill 61, the “Donald J. Trump Voting Rights Restoration Act;” House Bill 62, the “Donald J. Trump Ban-The-Box Act … to prohibit public employers from using criminal history as a bar to employment;” and House Bill 249, the “Donald J. Trump Early Voting Act.” — Geoff Pender


More bills filed to criminalize abortion

Since the 2022 Dobbs Supreme Court decision overturned the constitutional right to an abortion, Mississippi lawmakers have proposed bills to criminalize workarounds to the state’s strict abortion ban – including criminalizing the abortion pill and out-of-state abortions. The 2025 legislative session is no exception. 

Rep. William Tracy Arnold, R-Booneville, filed House Bill 616 that would make it a felony to manufacture or make accessible medication abortion. Anyone convicted of the crime would be subject to a fine between $1,000 and $5,000, as well as imprisonment between two and five years. Last year, about 250 Mississippians each month requested medication abortion from Aid Access, the only online telemedicine service supplying medication abortion via mail in the U.S. 

Helping a minor receive an abortion would also be criminalized under House Bill 148 filed by Rep. Mark Tullos, R-Raleigh. That would include transporting a minor out of state to undergo an abortion, as well as helping a minor procure a medication abortion – both of which would be punishable by not less than 20 years in prison or a fine of not less than $50,000. — Sophia Paffenroth


$1.1 billion

The estimated net annual cost of the House plan to eliminate the state income tax and raise sales taxes, once fully phased in. Proponents say economic growth would allow the state budget, currently about $7 billion a year, to absorb the cut. Eliminating the income tax would cost the state $2.2 billion in revenue, but the House plan would raise about $1.1 billion in other taxes in offset.

0

The amount of income tax Mississippians would pay after a 10-year phased in elimination of the state income tax. With previous cuts being phased in, state income taxes next year will already be reduced to 4%, among the lowest rates in the nation.

8.5 %

The new Mississippi sales tax, up from current 7%, under the House tax plan assuming most local governments would not opt out of adding a new 1.5% local sales tax.

13 cents more a gallon

The cost of the House’s proposed new 5% gasoline tax, based on last week’s average cost of gasoline in Mississippi of $2.62. The new 5% tax would be on top of the flat 18.4 cents a gallon current state excise on gasoline.

4%

The tax on unprepared food once a reduction of the current 7% would be phased in over a decade under the House plan. The state would over time reduce its sales tax on such groceries to 2.5%, but local governments would add a 1.5% sales tax to such items unless they opt out.

Lawmakers must pass new legislation to improve access to prenatal care

Lawmakers will file another bill this session to help low-income pregnant women get into the doctor earlier – after the federal government rejected the program set up under last year’s law, because of discrepancies between what was written into state law and federal regulations for presumptive Medicaid eligibility. Read the story.


Proposal: eliminate income tax, add 5% tax on gas, allow cities, counties to levy local sales tax

House leaders last week unveiled a sweeping tax cut proposal that would eventually abolish the state income tax, slash taxes on groceries, increase local sales taxes and shore up funds for state and local road work. Read the story.


A new Mississippi law aims to limit jailing people awaiting mental health treatment. Is it working?

Officials say a new law to decrease the number of people being jailed solely because they need mental health treatment has led to fewer people with serious mental illness detained in jails – but the data is contradictory and incomplete. Lawmakers plan legislation to make more counties report the data. Read the story.


How soon we forget: Mississippi House push for record tax cuts revives fear of repeat budget crises

Eight years ago, from a combination of dozens of tax cuts the Legislature approved and a slumping economy, the state saw a budget crisis that resulted in severely underfunded schools, government layoffs, a near halt to building new roads and highways and problems maintaining the ones we have, too few state troopers on the highways and cuts to most major state services. Read the story.


NAACP legislative redistricting proposal pits two pairs of senators against each other

The Mississippi chapter of the ACLU has submitted a proposal to the courts to redraw the state’s legislative districts that creates two new majority-Black Senate districts and pits two pairs of incumbent senators against one another. Read the story.


Legislation to send more public money to private schools appears stalled as lawmakers consider other changes

Some top lawmakers in Mississippi’s Republican-controlled Legislature are prepared to make it easier for students to transfer between public schools but remain skeptical of sending more public money to private schools. Read the story.


House passes $1.1 billion income tax elimination-gas and sales tax increase plan in bipartisan vote

A bill that phases out the state income tax, cuts the state grocery tax and raises sales taxes and gasoline taxes passed the House of Representatives with a bipartisan vote on Thursday. Read the story.


Tate Reeves and other top Mississippi Republicans owe thanks to President Joe Biden

The tremendous cash surpluses that some state Republicans cite when defending their plan to eliminate the state’s income tax would not exist if not for the billions of dollars in federal funds that have been pumped into the state during Biden’s presidential tenure. Read the story.


Podcast: Mississippi transportation director discusses proposed new gasoline tax

Mississippi Department of Transportation Director Brad White tells Mississippi Today’s Geoff Pender and Taylor Vance he’s staying “in his lane” and out of the politics of a House tax overhaul that would eliminate the income tax and raise sales and gasoline taxes, but that he’s pleased lawmakers are trying to address the long running need for a steady new stream of money to help cover highway maintenance needs. Listen to the podcast.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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