CRIMINAL CAPITALI$M
One man's plea deal may shed light
on Brett Favre's possible ties to a
$70 million Mississippi welfare scam
In a development that could impact Pro Football Hall of Fame quarterback Brett Favre, a key figure in an unfolding Mississippi welfare misappropriation scandal entered into a plea deal with state and federal prosecutors Thursday.
In a deal announced by the U.S. Department of Justice, John Davis, the former director of the Mississippi Department of Human Services, entered a guilty plea Thursday for his role in a scheme that misdirected more than $70 million in welfare funds earmarked to support the state’s neediest residents. In exchange for the plea, Davis is expected to cooperate with investigators who are seeking additional indictments in the scam.
Davis' cooperation is believed to be key for state and federal prosecutors, who are seeking information on other possible individuals involved in the various stages of misdirecting funds. Those under investigation include multiple unnamed (for now) co-conspirators with Davis.
Favre has come under media scrutiny for nearly $8.1 million in welfare funds that were allegedly doled out to entities tied to the former NFL star. Of that sum, $1.1 million directly went to Favre for public speaking appearances that he allegedly didn’t make, along with $5 million to the construction of a volleyball building at Favre’s alma mater, the University of Southern Mississippi, and another $2 million to a pharmaceutical startup that Favre has been tied to as an investor.
Favre repaid the $1.1 million for the uncompleted speaking engagements — although not the accrued interest that prosecutors sought — and his lawyer has denied the former NFL quarterback knew welfare funds were being tapped for any of his endeavors. With his plea agreement, Davis could answer any questions for prosecutors about Favre’s level of knowledge or influence, as well as shed light on any meetings regarding the funds that went to entities tied to the former NFL star.
According to the DOJ's announcement, Davis directed his office to provide “federal funds to two nonprofit organizations and then directed the two organizations to fraudulently award contracts to various entities and individuals for social services that were never provided.”
As part of his plea, Davis is expected to reveal how that alleged fraud was established and the precise individuals who benefitted. Such cooperation is considered a massive coup for state and federal prosecutors, who charged Davis as a central facilitator in the misappropriation scam. Davis had been indicted on two dozen charges for his role in the misappropriations and would have faced a potential of nearly 50 years in prison had he been convicted on all counts. Instead, with his cooperation and plea agreement to a handful of charges, he’s expected to face only a fraction of that time behind bars in exchange for cooperation that could implicate other figures.
Davis’ guilty plea is the second major agreement reached in the case by prosecutors, following nonprofit manager Nancy New, who was indicted and in April pleaded guilty to 13 felonies related to the investigation. New was accused of fronting a nonprofit that was utilized as a pipeline to move welfare funds to various projects in an enterprise that state and government authorities historically describe as a “welfare for the well-connected” plot.
Aside from Favre, prosecutors are also investigating former Mississippi governor Phil Bryant. Published reports by Mississippi Today detailed alleged texts linking Bryant, Davis, New and Favre to funds that were sought for the volleyball building project at Southern Miss. Among those materials, Bryant allegedly directed Favre in how to write a funding proposal that would be approved by the Mississippi Department of Human Services. Bryant has denied any recollection of using welfare funds for inappropriate projects.
Former top Mississippi health official pleads guilty to fraud
A former top Mississippi health official pleaded guilty on Thursday to conspiracy to defraud the state of millions of dollars in federal funds as part of a scandal that also involved former NFL quarterback Brett Favre.
A Justice Department release states that John Davis, who served as the executive director of the Mississippi Department of Human Services, and co-conspirators illegally took funds from two welfare programs — Temporary Assistance for Needy Families and the Emergency Food Assistance Program — for their own personal use.
Davis directed the state human services department to provide federal funds to two nonprofit organizations, which he then told to award contracts to multiple entities and people for social services that were never provided, the release states.
Davis also had the nonprofits make complete or almost-complete payments to those contracts near the start of the contract periods, knowing that no major service would be provided, according to the Justice Department.
Favre received a letter from the state auditor’s office in October to request the repayment of money he received as part of the scheme. Nine other individuals also received the letter.
Favre reportedly was improperly paid $1.1 million in welfare funds from December 2017 to June 2018. He repaid $600,000 in October, but the state auditor said he still owed $228,000 in interest.
Texts between Favre and former Mississippi Gov. Phil Bryant (R) revealed last week that they communicated ways to use at least $5 million in welfare funds for a new volleyball center at the University of Southern Mississippi, his alma mater.
Davis pleaded guilty to one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds and one count of theft concerning programs receiving federal funds.
Sentencing is scheduled for Feb. 2, 2023, and he could face up to five years for the count of conspiracy and 10 years for the count of theft.
For the latest news, weather, sports, and streaming video, head to The Hill.
No comments:
Post a Comment