Biotech company’s CEO pleads guilty in Mississippi welfare fraud case

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JACKSON, Miss. (AP) — The chief executive officer of a biotech company with ties to the largest public corruption case in Mississippi history pleaded

JACKSON, Miss. — The chief executive officer of a biotech company with ties to the largest public corruption case in Mississippi history pleaded guilty Wednesday to one count of wire fraud for improperly using welfare funds intended to develop a concussion drug.

A lawsuit filed by the state Department of Human Services alleges that $2.1 million of welfare money paid for stock in VanLandingham’s Florida-based companies, Prevacus and PreSolMD, for Nancy New and her son, Zachary New, who ran nonprofit groups that received welfare money from Human Services. Former NFL star Brett Favre is named in the Human Services lawsuit as the “largest individual outside investor” of Prevacus. Favre, who has not been charged with wrongdoing, has said he put $1 million of his own money into VanLandingham’s companies, which were developing a nasal spray to treat concussions and a cream to prevent or limit them.

Nancy New and Zachary New previously pleaded guilty to state charges of misusing welfare money, including on lavish gifts such as first-class airfare for Davis. Nancy New, Zachary New and Davis all agreed to testify against others.

 

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Biotech company's CEO pleads guilty in Mississippi welfare fraud caseThe chief executive officer of a biotech company with ties to the largest public corruption case in Mississippi history has pleaded guilty to one count of wire fraud for improperly using welfare funds intended to develop a concussion drug.
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