Tag: Fraud

Report: Former Jets QB Brett Favre tied up in Mississippi welfare fraud scheme

Brett Favre reportedly earned more than $1 million for appearances he never made in his home state of Mississippi.

Hall of Fame and former Jets quarterback Brett Favre allegedly earned $1.1 million from the state of Mississippi for appearances he never made as part of a much larger welfare fraud scheme, according to a state audit.

The audit alleges that the Mississippi Department of Human Services spent over $94 million in welfare money on inappropriate expenditures such as Favre’s “appearances,” cars, sponsoring baseball tournaments and hiring family members by funneling federal welfare grant funds into two non-profits. Those two organizations then spent the money.

The Mississippi Community Education Center, one of the two non-profits at the heart the scandal, reportedly paid Favre Enterprises $500,000 in December 2017 and $600,000 in June 2018 for appearances, promotions, autographs and speaking engagements. The audit concluded Favre “did not speak nor was he present for those events.”

Favre, who grew up in Mississippi and played football at Southern Miss, has not commented on the allegations and isn’t facing criminal charges.  

2 former Texans indicted on charges of defrauding NFL’s health-care plan

Two former Houston Texans were indicted on charges by a federal grand jury in a scheme to defraud the NFL’s health-care plan.

Two former Houston Texans players have been indicted on charges of defrauding the NFL’s health-care plan.

According to USA TODAY’s Kevin Johnson, former Texans safety C.C. Brown and defensive back Fred Bennett were among 10 former NFL  players a federal grand jury charged with defrauding the NFL’s Gene Upshaw NFL Player Health Reimbursement Account Plan — the retiree health care benefits plan. The other eight players include Clinton Portis, John Eubanks, Tamarick Vanover, Robert McCune, James Butler, Correll Buckhalter, Etric Pruitt, and Carlos Rogers.

In addition, the U.S. Department of Justice announced it will seek charges against former NFL receivers Reche Caldwell and Joe Horn. However, it appears that Horn is cooperating with the feds.

According to the indictments, nearly $4.0 million in false or fradulent claims were submitted to the plan, and nearly $3.5 million was paid out from June to December of 2018.

“Ten former NFL players allegedly committed a brazen, multimillion-dollar fraud on a health care plan meant to help their former teammates and other retired players pay legitimate, out-of-pocket medical expenses,” Assistant Attorney General Brian Benczkowski said in a press conference via Touchdown Wire’s Doug Farrar. “Today’s indictments underscore that, whoever you are, if you loot health care programs to line your own pockets, you will be held accountable by the Department of Justice.”

All 10 defendants are charged with one count of conspiracy to commit wire fraud and health care fraud based on the accusations that they faxed reimbursement forms for such things ranging from muscle timulator pule massagers to CryoSauna tanks. In addition, there are nine separate counts of wire fraud and nine different counts of health care fraud.

Counts 1-10 can be penalized by imprisonment for not more than 20 years, a fire of $250,000 or twice the gross gain or loss, and also supervised release for not more than three years.

Counts 11-19 can be penalized by imprisonment for not more than 10 years, a fine of $250,000 or twice the gross gain or loss, and supervised release for not more than three years.

Allegedly the players fabricated letters from health care providers regarding the use of the medical equipment, concocted fake prescriptions that were allegedly signed by health-care provides, and even created fake invoices for medical equipment as a proof of purchase.

According to the release via CNN, McCune and Buckhalter even called the health benefits phone line impersonating other former players to check the status of the claims.

More indictments could be on the way as several of the players named allegedly reached out to other ex-players to be a part of the scheme with kickbacks up to $10,000.

A money judgement has been weighed against Brown, Bennett, and the other defendants. That means if the equipment in question can’t be located, is in possession of a third party, or has diminished in value, “the Unites States of America shall be entitled to forfeiture of substitute property.”

Former employee sues promoter Greg Cohen for $1.5 million

Promoter Greg Cohen has at least one legal wrangle to sort out before he heads to federal prison. Clifford Mass seeks $1.5 million

Promoter Greg Cohen has at least one legal wrangle to sort out before he heads to federal prison.

Clifford Mass, a former employee of Cohen’s promotional company, is seeking more than $1.5 million in damages from Cohen for breach of contract, unpaid wages, breach of fiduciary duties, misrepresentation and fraud over an investment agreement that has not been fulfilled. The suit was filed in the U.S. District Court of the Southern District of New York on Jan. 31 of last year. The parties are expected to settle at a conference scheduled for Dec. 4.

Cohen was sentenced last week to six months in federal prison for wire fraud unrelated to boxing. He had 60 days to turn himself in.

According to Mass’ complaint, in March 2015 he invested $250,000 in Greg Cohen Promotions for a 5 percent financial stake. The arrangement called for Mass to “receive a 25 percent preferred return of the Promotional Profits until (he) received his $250,000.00 investment back” in addition to receiving “5 percent of the Promotional Profits in perpetuity.” Promotional profits are defined as revenue generated from not only GCP-promoted events, but also cases in which GCP fighters participated in events organized by other promoters. Cohen’s best known fighter is heavyweight contender Jarrell Miller (co-promoted by Dmitry Salita), who received a six-month ban in New York after testing positive for PEDs ahead of his projected fight against Anthony Joshua last summer.

Mass was employed by GCP from April 2015 to February 2018, or up until he filed his claim. His official title at GCP was Vice President of Business Development. According to the complaint, Mass was described at one point on the GCP website as “Right-hand man to Greg Cohen. … He works closely with Greg in talent acquisition, relationship management, strategic planning and various day-to-day aspects of the business.”

Mass claims that ever since he entered into the investment agreement, he has not received his cut from more than 40 GCP events and others staged by outside promoters, which include, but are not limited to, the following:

July 29, 2017 bout featuring Jarrell Miller
Nov. 11, 2017 bout featuring Jarrell Miller
Dec. 19, 2016 bout featuring Mason Menard
April 8, 2016 bout featuring Eric Hunter
March 5, 2016 bout featuring Antoine Douglas
Dec. 5, 2014 bout featuring Dennis Hogan
April 15, 2014 featuring Tony Louis

Mass is also looking to recover $14,000 he says he loaned to Cohen in January 2016. Mass says Cohen “demanded” the loan and that it would be repaid in two months. Mass arranged to wire the loan out of “concern for retribution.”

The lawsuit comes to light as Cohen stares down a six-month prison sentence for wire fraud after accepting $200,000 from an unnamed party for an investment that was never made.