Mississippi Today and Clarion Ledger report on who knew that Mississippi welfare money was being funneled to a biomedical start-up company. Who incited it? And who stands to gain from the deal? In February, the state auditor held an inquiry into welfare embezzlement. Only two people were indicted: Nancy New and Zach. They funneled $2 million to a Florida-based concussion drugs company. Nancy New now claims that someone else was involved in the scheme. This is the latest story in a series of investigations by Mississippi Today, the Clarion Ledger and Clarion Ledger into a wide-ranging welfare scandal. Authorities claim that state officials and contractors illegally spent or questionably spent millions meant for poor Mississippians. Six people were indicted. Nancy New was the founder of a private company that was largely funded by state welfare agency block grants. Prosecutors claim that the mother of the nonprofit founded and her son committed a crime by sending more than $2 million in block grants to Prevacus, PreSolMD and related companies that state leaders wanted to lure to Mississippi. Her son Zach New and she pleaded not guilty. Nancy New was not allowed to speak publicly since February, when she was indicted. Clarion Ledger and Mississippi Today reporters approached her Friday, November 6. Nancy New, who will be appearing in court on April 5, spoke for approximately 40 minutes with reporters. Most questions were not answered by her. When asked if she was instructed to pay the founder of the startup, New replied, “absolutely.” Nancy New repeatedly admitted that someone had told her to direct money for the development concussion treatment treatments. She refused to say who or what the directive came from. Nancy New was asked about her relationship with Jake Vanlandingham (florida neuroscientist), and she replied, “Let’s just say that I didn’t know him.” Vanlandingham met several times in Mississippi before Nancy New and her husband allegedly sent him welfare money. Mississippi Today and Clarion Ledger reached people who had met or were due to meet Vanlandingham, such as former Gov. Phil Bryant and retired quarterback Brett Favre were the state’s top welfare officers John Davis and Teddy DiBiase Jr. Former pro wrestler Teddy DiBiase Jr. told reporters this week that they didn’t instruct Nancy New to give money Vanlandingham and his companies. Both Favre and Bus Cook, his agent, are Prevacus investors. They did not immediately respond when we asked them for comment. Bryant, Favre, and DiBiase were not charged with any crime in connection to the welfare scam. After DiBiase’s brother Brett used welfare money to fund luxury drug rehab in Malibu, a grand jury indicted Davis for embezzlement. This is separate from the Prevacus payments. Davis has pleaded guilty. According to Mississippi Today’s March email calendar, emails show that Davis organized meetings between Vanlandingham, Nancy New, and one Bryant and Favre requested. This meeting was to have taken place at Nancy New’s office in January 2019. Davis’ close friend DiBiase revealed details of a second meeting at Favre’s house in December 2018 or January 2019. This meeting was never published. According to Scott Gilbert, DiBiase, it was a pitch meeting. Gilbert stated that his client remembered meeting six people at Favre’s south Mississippi home: Favre, Cook, Davis Nancy New, Vanlandingham, Davis, Nancy New and Nancy New. Gilbert stated in writing that it was obvious to Teddy (DiBiase), during the meeting, that Prevacus people were pitching John Davis state money for funding. “This was not an open forum where they were pitching investors to a bunch. Teddy does not believe John Davis, DHS executive director, would have attended the meeting. Prevacus, at or around the time, created an investment pitch document stating that the company was expecting to receive $1.95million from DHS. The Clarion Ledger, Mississippi Today and Mississippi Today have recently obtained this document. It does not mention Nancy New or her nonprofit, the Mississippi Community Education Center. Vanlandingham stated that he had signed a deal to the Mississippi Community Education Center. He also said that the funds were at least partially funded by the Mississippi Department of Human Services. This is despite Davis’ participation in meetings. Vanlandingham stated that the money was meant to be used to fund clinical trials for a nasal spray to reduce swelling from head injuries. Vanlandingham believed that the Mississippi state government and the nonprofit were inextricably synonymous. Nancy New, however, seemed to be Davis’ boss. Clarion Ledger reported that he listed the state welfare agency as a potential future funding source in an additional pitch. In the May audit report, however, the state auditor stated that Prevacus’ agreement was in fact entered into by Nancy New and Zach New individually. This distinction supports the auditor’s claim that the News stole the funds. Vanlandingham refused to share the contract. The auditor’s office maintained that it was confidential because of ongoing criminal investigations. According to Bryant, discussions revolved around the possibility of the state partnering with the company in order to move and manufacture the concussion drug at Tradition. Tradition is a new medical facility on the Gulf Coast. Bryant was invited to a dinner by the company in December 2018. This was a month before illegal payments started flowing to Prevacus. Bryant stated that Prevacus recruiting was an important part of his economic development strategy. While he has called Prevacus a “good prospect”, he has repeatedly stressed that he did not direct anyone to give welfare money the company. Bryant stated in a written statement that he did not direct, instruct or order the spending of Temporary Assistance for Needy Families funding through the Department of Human Services to give complete clarity to current and future media reports. Bryant appointed Davis as the Human Services agency’s head in 2016. According to the annual state audit, it was during Davis’ tenure that the agency spent tens of million of welfare dollars in error. Sometimes, the director was alleged to have had unilateral control over federal grants flowing through his agency. The state audit questions spending by agency agencies of $94 million, including luxury vehicles, lobbying for private companies, and celebrity contracts for services not performed. However only a small fraction of the questioned spending has led to criminal charges. Prevacus, a concussion research company, and PreSolMD, its affiliate, are the most significant alleged theft. These payments continued until October 2019, after Davis’s departure. Many seemingly unwise purchases may not have been illegal because the state can spend federal welfare grants as it pleases. New said to Mississippi Today and Clarion Ledger that she was not allowed to talk publicly about the case or provide any new information until the Mississippi Department of Human Services has completed an audit of the agency’s and nonprofit’s spending under Davis’ administration. The DHS’s new leadership recently ordered a forensic auditor to examine spending under Davis. This will provide a more detailed accounting on agency misspends and is expected be completed in May. New stated that she believes the forensic audit would significantly contradict the narrative in the 104-page state auditor’s report._x000D