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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.

Crooked Letter Sports Podcast

Rusty Hampton and the glory years of sports writing

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mississippitoday.org – @MSTODAYnews – 2025-07-30 16:06:00

Rusty Hampton was the sports editor at the Clarion Ledger for 11 years and worked there for 25 years in two different stints. He talks about some of the highlights, including Mississippi State’s amazing run to the 1996 Final Four.

Also discussed: a salute to Ryne Sandberg, the SEC preseason football poll, and Konnor Griffin, the newly elevated top prospect in professional baseball.

Stream all episodes here.


This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post Rusty Hampton and the glory years of sports writing appeared first on mississippitoday.org

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Mississippi Today

JXN Water says Henifin not serious about resignation, just frustrated by Wingate

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mississippitoday.org – @alxrzr – 2025-07-30 14:53:00


JXN Water clarified that interim manager Ted Henifin is not seriously considering resignation after a dispute with U.S. District Judge Henry Wingate, who criticized Henifin over a proposed 12% rate increase. Wingate insists on locating funds from a $90 million Siemens settlement before approving higher rates, arguing it’s unfair to raise rates if money remains. Henifin contends even full settlement funds wouldn’t cover costs. The utility needs $148 million annually, including operating expenses, debt, and reserves. Rate hikes aim to cover inflation and previous underestimated revenue needs. The timing of a ruling on the increase remains uncertain.

Third-party water and sewer utility JXN Water clarified on Wednesday that its manager Ted Henifin isn’t considering a resignation following a dispute with the federal judge who appointed him to the role in 2022.

During a status conference Tuesday, Henifin told U.S. District Court Judge Henry Wingate he would weigh whether to step down after the judge pushed back on the manager over two issues, including a rate increase JXN Water first proposed five months ago to keep its daily operations funded.

“I think it has been a difficult week for JXN Water, specifically the leadership,” Aisha Carson, the utility’s communications officer, told Mississippi Today. “But I think (Henifin) is very much committed to the work we’re doing in Jackson. I just think he’s also very protective and can sometimes get frustrated by the process that decisions have to go through.”

Carson said Henifin cleared up any confusion to JXN Water staff after the status conference, adding it’s “safe to say” the manager isn’t considering resigning at this time.  

Aisha Carson, lead communications officer at JXN Water, gives a presentation during a Jackson utilities community meeting at the Mississippi E-Center at JSU in Jackson, Miss., Tuesday, Aug. 27, 2024.

“We know (the rate decision) will continue to move through the legal process, and there’s really nothing we can do about it per se,” she said. “We trust the legal process no matter how frustrating it can be. We don’t want to regress on progress. (Henifin) is still acting as the interim third-party manager, and will be for the foreseeable future unless he states otherwise.”

Wingate said at another hearing earlier this month, and reiterated Tuesday, that he wouldn’t consider the rate hike before locating every dollar from a $90 million settlement the city of Jackson executed with Siemens in 2020. The judge argued it’s unfair to ask for more from Jacksonians when there may be more money that could help JXN Water. 

“Constantly I ask the question: Where is that money? Where has it been deposited?” Wingate said. “I’ve been disturbed about this matter, highly disturbed.”

Henifin, though, has repeatedly pointed out to Wingate that even if he had every cent from the settlement – which was $60 million after the city paid its lawyer fees – the utility would still need to raise rates. Jackson City Attorney Drew Martin also suggested at the last hearing that the city has already spent almost all of the remaining settlement money. 

The third-party manager is proposing a 12% rate increase, or about $9 per month on average, it says, in addition to 4% increases from 2027 to 2029 to cover costs of inflation. It would be the second time in as many years JXN Water has raised its rates.

Federal Judge Henry T. Wingate

The utility says it needs $148 million a year in revenue, which includes $115 million for operating expenses, about $24 million for debt payments, and $9 million to build reserves. Henifin has said the utility initially underestimated how much revenue it needed due to the poor accounting it received from Jackson officials when it took over after the 2022 water crisis. 

Henifin and Wingate also butted heads after the manager sent the judge a list of names for a potential voluntary board that would be needed if JXN Water were to borrow money through bonds. While Carson, JXN Water’s spokesperson, said Henifin did so merely to show the judge what the governance structure would look like, Wingate told the manager the board selection process should be independent of Henifin. JXN Water declined to share the list of names Henifin submitted. 

It’s unclear still when Wingate will rule on Henifin’s proposal for a rate increase. During Tuesday’s status conference, Jackson’s Deputy City Attorney Terry Williamson said he’s still reviewing documents from the Siemens settlement. Wingate issued subpoenas to several parties to track the funds down, most recently on July 22. Several of those subpoenas have yet to be returned, court filings show. 

Jackson’s City Council voted in April against the water rake hike, saying the utility first needs to improve its bill collection rate of 71%. Henifin, though, maintains that even with 100% collections JXN Water would be short of its revenue needs by at least $33 million this year. He said Tuesday that it would take three years to bring it up to 95%. 

Henifin also said Tuesday that the city itself owes about $4.6 million in water bills, and Wingate said the Jackson Zoo owes $2 million. 

Reporter Maya Miller contributed to this story.

This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post JXN Water says Henifin not serious about resignation, just frustrated by Wingate appeared first on mississippitoday.org



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

This article presents a factual and balanced report on the ongoing dispute between JXN Water’s manager Ted Henifin and Federal Judge Henry Wingate regarding water rate increases and financial transparency. The language remains neutral, simply relaying statements from both parties and relevant officials without editorializing or taking sides. It highlights differing viewpoints on the utility’s financial needs and the judge’s insistence on accountability. The coverage focuses on procedural and financial details, maintaining an objective tone without promoting any ideological agenda, consistent with straightforward, centrist reporting.

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Mississippi Today

JPS superintendent visits on first day of school

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mississippitoday.org – @devnabose – 2025-07-28 14:16:00


Students in Jackson Public Schools returned to class Monday with enthusiasm and some new policies. Superintendent Errick L. Greene greeted students, emphasizing his commitment to being visible and supportive. High schoolers, including seniors like Rakeem Burney, expressed excitement about the new year. The district has implemented a stricter cellphone ban to reduce bullying and improve communication. Greene’s focus this year includes academic excellence, safer schools, and stronger family communication. At North Jackson Elementary, teachers introduced young students to classroom routines and expectations, building relationships from day one. The energy and optimism marked a hopeful start for the district’s 2025-26 school year.

As teenagers flooded into Callaway High School on Monday morning, one shirt that read “last first day” drew the attention of Jackson Public Schools administrators greeting students at the door.

“Last first day!” cheered Superintendent Errick L. Greene, prompting a smile from the senior striding past.

Across the city, students went back to school Monday for the start of the new year. For some, it was their first day in a classroom. For others, like Rakeem Burney, it would be the last time they celebrated the first day of grade school. 

“It’s my senior year, but it hasn’t really hit me yet,” he said, dressed sharply in sparkling white sneakers. “I’m just excited to meet all my teachers and embark on this journey and everything this year will bring. The fact that the superintendent came, too, means a lot to me.”

That was the goal, Greene said. By showing up on the first day, he wanted to show students his support and commitment to them.

“This is where the magic happens,” he said. “For all of the back of the office things I have to do, the most important thing is to be here, to observe what’s going on but also to be visible with scholars and team members. They need to know I’m part of this work on the ground.

“This fills my cup.”

The energy was high at Callaway — volunteers and cheerleaders shook pompoms as students meandered through hallways, greeting one another and checking out their schedule for the year — but district changes were also apparent.

As some students entered the high school with cell phone imprints clearly visible in their jean pockets, administrators warned them to put their devices in their backpacks, out of reach. 

Phones were already banned at JPS schools, but the board approved a stricter policy over the summer in an effort to curb bullying, violence and miscommunication with parents. 

It’s part of Greene’s vision for the school year — a safer, more scholastically successful and well-staffed district. He said academic excellence remains a top focus for JPS, but there’s also work to be done around district culture. That includes supporting teachers and strengthening communication with families.

And the work starts from day one, he said.

Just down the block at North Jackson Elementary School, preschoolers were learning for the first time how to behave in a classroom. Greene joined them later that morning, stacking rainbow blocks on a brightly colored rug, while principal Jocelyn Smith circled the classroom, troubleshooting and smiling at the young students.

Despite her cheeriness, by 9 a.m. on Monday, Smith had been awake for hours. 

“The first day for me is just like for the children,” said Smith, who’s been working in education for three decades. “I couldn’t sleep last night. I was too excited to see the children.”

For the elementary students, the first day is essential to the rest of the year, she said.

“They get an introduction to the curriculum … they learn our procedures and how to be safe,” she said. “But most of all, they start learning our expectations for them, and they start to build a relationship with their teachers.”

In a different classroom up the hall, Rakesia Gray was figuring out what her third graders would be interested in reading this year. She passed out a worksheet, and asked her students to circle the topics they liked best. 

“On the first row, tell me which one you’d rather read out,” she said. “Polar bears or penguins?”

The room was silent. Students shyly glanced at each other.

“Come on now,” Gray said, laughing. “Y’all have gotta talk to me!”

This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post JPS superintendent visits on first day of school appeared first on mississippitoday.org



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

This article presents straightforward, fact-based reporting on the first day of school in Jackson Public Schools, highlighting the superintendent’s involvement and district policies without promoting a particular political viewpoint. The tone is neutral and focused on community and educational themes, with no ideological framing favoring left or right perspectives. It covers administrative actions and student experiences in an objective manner, providing balanced context on policy changes like the cellphone ban and emphasizing educational goals. The coverage reflects standard local news reporting rather than advancing any ideological stance.

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