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Fitness trainer says former Gov. Bryant directed welfare-funded project, sues for emotional distress

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Fitness trainer says former Gov. Bryant directed welfare-funded project, sues for emotional distress

Paul Lacoste, a trainer and one of the retired athletes ensnared in Mississippi's ongoing welfare scandal, is firing back at the 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 in the Jackson metro area, which included then-Lt. Gov. Tate Reeves and many other lawmakers.

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Lacoste's organization, Victory 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.

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Lacoste joins a growing number of defendants in the civil case — 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.

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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 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.

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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.

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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 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 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.”

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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.”

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“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

PSC axes solar programs in light of EPA funds, advocates file lawsuit

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mississippitoday.org – Alex Rozier – 2024-05-15 12:10:31

Advocates from some of the 's conservation groups — such as Audubon Delta, Mississippi Sierra Club and Steps Coalition — spoke out Wednesday against a recent decision by the Mississippi Public Service Commission to suspend several solar programs, including “Solar for Schools,” less than two years after the previous commission put them in place.

“This is particularly disappointing because the need for these incentives in the state of Mississippi is significant,” said Jonathan Green, executive director of Steps Coalition. “Energy costs in the South, and in particular the region known as the Black Belt, are higher than those in other parts of the country for a number of reasons. These regions tend to have older energy generation infrastructure, and housing that has not been weatherproofed to modern standards. For many low- to moderate-income in the state of Mississippi, energy burden and energy insecurity represent real economic challenges.”

The PSC voted 2-1 at its April docket meeting to do away with the programs, reasoning in part that new funds through the Reduction Act would be available to the state. About 10 days later, the Environmental Protection Agency awarded $62 million to the state, through the Hope Enterprise Corporation, to low-income afford adding solar power to their homes. The funds are part of the Biden Administration's Solar for All program, one of the several recent federal initiatives aimed at reducing greenhouse gas emissions.

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The PSC decision ended three programs the previous commission put in place to encourage wider adoption of solar power through the two power companies it regulates, Entergy Mississippi and : “Solar for Schools,” which allowed school districts to essentially build solar panels for free in exchange for tax credits, as well as incentives for low-income customers and battery storage.

Last Friday, the Sierra Club filed lawsuits in chancery courts in Hinds and Harrison counties against the commission, arguing the PSC broke state law by not providing sufficient reasoning or public notice before making the changes. Advocates also argued that new funding going to Hope Enterprise won't go as far without the PSC's low-income incentives.

The programs were part of a 2022 addition to the state's net metering rule, a system that allows homeowners to generate their own solar power and earn credits for excess energy on their electric bills. Mississippi's version is less beneficial to participants than net metering in most states, though, because it doesn't reimburse users at the full retail cost. Mississippi's net metering program itself is still in tact.

Northern District Commissioner Chris Brown said that, while he supported efforts to expand solar power, he didn't think programs that offer incentives from energy companies were fair to other .

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Solar panels on the roof of the performing arts center at North Forrest High School. Credit: Mike Papas / Forrest County School District

“It's the subsidy that we take issue with,” Brown said at the meeting. “It's not the solar, it's not the helping the schools. We just don't think it's good policy to spread that to the rest of the ratepayers.”

Brown and Southern District Commissioner Wayne Carr voted to end the programs, while Central District Commissioner De'Keither Stamps voted against the motion. All three are in their first terms on the PSC. Brown's position is in line with what the power companies as well as Gov. Tate Reeves have argued, which is that programs like net metering forces non-participants to subsidize those who participate.

Robert Wiygul, an attorney for the Mississippi Sierra Club, countered that argument during Wednesday's press conference, saying that net metering actually helps non-participants by adding more power to the grid and reducing the strain on the power companies' other infrastructure. Moreover, he said, the PSC hasn't offered actual numbers showing that non-participants are subsidizing the program.

“Look, if the commission wants to talk about that, we are ready to talk about it,” Wiygul said. “But what we got here is a situation where these two commissioners just decided they were going to do this. We don't even know what that claim is really based on because it hasn't been through the public notice and hasn't been through the public comment process.”

While no schools had officially enrolled in “Solar for Schools,” which went into effect in January of last year, Stamps told Mississippi that there were places in his district getting ready to participate in the very programs the PSC voted to suspend.

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Mississippi Public Service Central District Commissioner De'Keither Stamps, discusses current agency operations across the state during an interview at district headquarters, Friday, Feb. 23, 2024, in Jackson. Credit: Vickie D. King/Mississippi Today

“My issue was we should have talked to the entities that were going through the process to (understand what they were doing) to participate in the programs before you eliminate the programs,” he said.

Several school districts in the state are already using solar panels thanks to funding from a past settlement with Mississippi Power. Officials there told Mississippi Today that the extra power generated from the panels has freed up spending for other educational needs. During the public comment period for the 2022 net metering update, about a dozen school district superintendents from around the state wrote in to support the initiative. Ninety-five school districts in the state would have been eligible for the program because they receive power from Entergy Mississippi or Mississippi Power.

Former commissioner Brent Bailey, who lost a close reelection bid in November to Stamps, was an advocate for the schools program that the PSC created while he was there. At the April docket meeting, he pleaded with the new commission to reconsider, arguing that the new federal funding won't have the same impact without those programs.

“My ask is to at least give this program a chance, see where it goes, and hear from stakeholders that have participated,” Bailey said. The solar programs, he added, weren't just about expanding renewable energy, but taking advantage of a growing economy around solar power as well: “We can just stand by and watch it go by, or we can participate in this and bring economic to the state.”

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

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Crooked Letter Sports Podcast

Podcast: In or out (of the NCAA Tournament)?

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College 's regular season is in its last , which means baseball bracketology is a popular activity. needs to finish strong to become a Regional host. Southern Miss probably has already punched its ticket as a 2- or 3-seed. , playing its best baseball presently, needs victories, period. Meanwhile, the State High School softball tournament is this week in Hattiesburg, and the state baseball tournament to Trustmark Park in Pearl next week.

Stream all episodes here.


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

Did you miss our previous article…
https://www.biloxinewsevents.com/?p=358148

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Mississippi Today

Reeves again blocks funds for LeFleur’s Bluff project in Jackson

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mississippitoday.org – Bobby Harrison – 2024-05-15 10:02:34

For the third consecutive year legislative efforts to direct money to renovate LeFleur's Bluff in have been stymied, thanks in large part to Gov. Tate Reeves.

Earlier this , the Republican governor vetoed a portion of a bill that directed $14 million to the office of Secretary of State Michael Watson for work on developing and improving a nature trail connecting parks and museums and making other tourism-related improvements in the LeFleur's Bluff area.

It is not clear whether the could take up the veto during the 2025 session, which begins in January, though, that's not likely. The Legislature had the option to return to Jackson Tuesday to take up any veto, but chose not to do so.

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Of the project, Watson said, “Our office was approached late in the session about helping with a project to revitalize LeFleur's Bluff. As Mississippi's state land commissioner, I was more than happy to lead this effort not just because it's a natural fit for our office, but also because I believe Mississippi needs a thriving capital city to retain our best and brightest. Investing state funds in state property on a project to enhance the quality of life in Jackson makes good sense.

“Unfortunately, some only support it when it equates to campaign contributions. Sadly, through the line-item veto of the appropriation, will once again wait another year for the to benefit from state investments for the greater public good.”

READ MORE: Gov. Reeves warns Mississippi: Challenge my vetoes, and it could jeopardize hundreds of projects

Various groups, such as representatives of the Mississippi Children's and many other community have been working on the project for years. The area already is the home of the Children's Museum, Museum of Natural History, Mississippi Sports Hall of Fame and Museum and a state park.

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The issues with LeFleur's Bluff first arose in 2022 when Reeves vetoed a $14 million appropriation that in part was designed to redesign and create a new golf course in the area. Previously, there had been a nine-hole, state-owned golf course operated by the Department of Wildlife, Fisheries and Parks at LeFleur's Bluff State Park.

In 2022, the LeFleur's Bluff project was one of literally hundreds of projects funded by the Legislature – many of which was tourism projects like LeFleur's Bluff. The governor only vetoed a handful of those projects.

When issuing the LeFleur's  Bluff veto, Reeves said the state should not be involved in funding golf courses.

Then last year $13 million was directed to the Department of Wildlife, Fisheries and Parks to spend on the LeFleur's Bluff project. But legislative leaders said state money would not go toward a golf course.

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Lawmakers opted to transfer the project to the Secretary of State's office late in the 2024 session, apparently in part because they felt the Department of Wildlife, Fisheries and Parks had not made enough of an effort to begin the project.

Lynn Posey, executive director of Wildlife, Fisheries and Parks, said that before moving forward with the project, “We felt like we needed to do engineering work and see what the situation was. We never got a to move forward” because the Legislature redirected the money.

Posey said an engineer's report was needed because “it is a unique piece of land.” He said much of the land is prone to flooding.

He said before that work could begin the Legislature switched the authority to the Secretary of State's office. Posey was appointed to his current position by Reeves, whose office had no comment on the veto.

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Lt. Gov. Delbert Hosemann said after the governor's veto, “Projects like the LeFleur's Bluff development are critical to the Capital City, the wider metropolitan area, and our state. Public parks add to the quality of life for our citizens. I am hopeful the individuals involved in this project, including those at the Mississippi Children's Museum, will continue their work to improve this state asset.” 

While the Constitution instructs the governor to provide to the Legislature a reason for any veto, Reeves did not do so this year when vetoing the money going to the Secretary of State's office.

On Monday, the governor also vetoed a portion of another bill dealing with appropriations for specific projects. But in this case, the veto was more of a technicality. The bill was making corrections to language passed in previous sessions. In that language were five projects the governor vetoed in 2022.

The language, as it was written, would not have revived those previously vetoed projects, the governor said. But Reeves said he vetoed the five projects out of caution. He did the same in 2023 when those five projects, which included money appropriated in 2022 for the Russell C. Davis Planetarium in Jackson, were carried forward in a bill also making corrections to previously passed legislation.

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

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