Jacob VanLandingham, the CEO of a biotech company with ties to the largest public corruption case in Mississippi’s history, pleaded guilty on Wednesday to one count of wire fraud. The charges stem from allegations of improperly using welfare funds intended for developing a concussion drug.
Court Proceedings
VanLandingham entered his guilty plea at a hearing before U.S. District Judge Carlton W. Reeves in Jackson, Mississippi. The court has not yet set a sentencing date. VanLandingham faces potential penalties of up to 20 years in prison and a $250,000 fine.
Misuse of Welfare Funds
The Mississippi Department of Human Services alleges that $2.1 million in welfare money was used to buy stock in VanLandingham’s Florida-based companies, Prevacus and PreSolMD, for Nancy New and her son, Zachary New. The News ran nonprofit groups that received welfare funds from Human Services. According to prosecutors, the Mississippi Community Education Center, operated by the News, provided approximately $1.9 million, including federal funds from the Temporary Assistance to Needy Families (TANF) program, to Prevacus. Instead of being used for the intended purpose of developing a pharmaceutical concussion treatment, a significant portion of these funds was misappropriated by VanLandingham for personal expenses, including gambling and paying off personal debts.
Involvement of Former NFL Star Brett Favre
Former NFL star Brett Favre is named in the Human Services lawsuit as the “largest individual outside investor” in Prevacus. Favre, who has not been charged with any wrongdoing, stated that he invested $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.
