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Brett Favre’s business partner in a drug company pleaded guilty in a Mississippi federal court Wednesday for his role in a welfare scandal. The drug company had illegally received more than $2 million of federal welfare funds.
Prevacus founder Jake VanLandingham pleaded guilty to a single count of wire fraud, a charge that carries up to 20 years in prison and a fine of up to $250,000. VanLandingham was released on a $10,000 bond as he awaits sentencing.
Favre has denied any wrongdoing as his ties to the misappropriation of funds and he has not been charged criminally.
“Favre is the next to be indicted,” Matt Tympanick, a federal criminal defense attorney who is not involved in the case but has closely observed it, tells Front Office Sports. “The feds now have someone who can tie Favre to the News and can articulate the alleged scheme.”
“The News” are Nancy and Zach New, the heads of a nonprofit Mississippi Community Education Center where the Temporary Assistance for Needy Families funds were funneled through to Favre and others. John Davis, the head of Mississippi Department of Human Services when the TANF money was illegally distributed, also pleaded guilty to federal charges.
With VanLandingham’s plea, federal prosecutors have now charged seven people who were part of a scheme that saw more than $90 million in welfare money illegally diverted—federal money earmarked for the poorest residents of Mississippi, the most impoverished state in the U.S. The federal investigation remains ongoing.
“The purpose of the scheme … was for VanLandingham to unlawfully enrich himself by making materially false and fraudulent representations that he would use certain funds, including funds obtained from MDHS through MCEC, to develop a pharmaceutical treatment for concussions,” prosecutors wrote in the charging document.
The News and Davis entered into plea deals that were contingent on their cooperation with federal investigators. The plea supplement for VanLandingham—a document that typically includes a cooperation agreement—was filed under seal in U.S. District Court for the Southern District of Mississippi.
Prevacus was developing two concussion-related treatments when the company received $2.2 million in TANF funds in 2019. Favre served as a spokesperson for the company and was the largest individual investor in Prevacus, according to court records.
Text messages from Favre and VanLandingham that have been made public in a lawsuit filed by MDHS have shown their interactions with others involved in the scandal, like Davis and the News. Both Favre and VanLandingham are also defendants in that pending civil case.
“Surprise [John Davis] with a vehicle. … We could get him a Raptor,” Favre wrote in a January 2019 text to VanLandingham.
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