Nancy and Zach New plead guilty to multiple counts under state welfare plan

JACKSON, Miss. (WLBT) – A mother-son duo involved in the biggest welfare fraud case in state history have pleaded guilty to multiple state charges, just a day after pleading guilty to charges in federal court.

On Friday, Nancy and Zach New filed motions to plead guilty in Hinds County Circuit Court.

Zach New has agreed to plead guilty to four counts of bribing a public official, two counts of fraud against the government and five counts of wire fraud.

Nancy New also pleads guilty to four counts of bribing a public official, two counts of fraud against the government, six counts of wire fraud and one count of violating the Racketeer Influenced Organizations Act and corrupt.

The state recommends that Zach New be sentenced to 75 years in prison, with 17 years to be served. The prosecutors of the Republic also recommend the condemnation of the court of Nancy New to 99 years of prison of which 25 to serve.

Additionally, it is recommended that all sentences be served concurrently with federal sentences and that all time served be in a federal prison.

However, the state is asking the court that no sentences be issued until both men have been convicted in federal court, documents show.

In addition to a potential prison sentence, Zach and Nancy New will each have to pay $3,656,000 in restitution and “cooperate fully with the state in prosecuting my co-defendants.”

The petitions arrive a day after the two pleaded guilty to numerous charges in federal court.

The News has been accused of embezzling millions of dollars in public relief funds, investing much of it in private companies. Funds have also been used to pay for addiction treatment services in California.

Nancy New was the founder of the popular New Summit School in northeast Jackson and owned the Mississippi Community Education Center, a nonprofit organization responsible for distributing TANF funding to families on behalf of the Department of Social Services of the Mississippi.

Earlier this week, additional charges were brought against former DHS executive director John Davis. He now faces 20 felony counts, following a new indictment by a Hinds County grand jury.

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