One of the defendants in a civil lawsuit brought by the state of Mississippi seeking recovery of Temporary Assistance for Needy Families (TANF) misappropriations has filed suit against Governor Tate Reeves. Austin Smith argues that the Governor violated state law by using TANF funds to pay private law firms because “the Attorney General is authorized to sue on behalf of state agencies,” he wrote in a 14-page complaint filed in Hinds County Circuit Court. Defendant Reeves can only sue “if the Attorney General declines to defend as requested.” Smith is the nephew of former Mississippi Department of Human Services Commissioner John Davis. Davis was a key figure in the largest fraud scheme in state history, which amounted to more than $77 million and funneled money to politically connected powerful people rather than some of the poorest people in the poorest state in the country. Smith’s attorney, Jim Wide, said the state is suing Smith to recover more than $400,000 in computer service contracts he received from Davis. Wide said the state is arguing Smith was not entitled to the contract. At a hearing Monday, Hinds County Circuit Judge Winston Kidd heard arguments from both sides after Reeves’ attorneys filed a motion to dismiss Smith’s lawsuit against the governor. Attorney Rex Shannon, who represents the governor, told the judge that Smith’s claims are legally insufficient and that the lawsuit should be dismissed because he lacks a claim against the governor. Shannon argued that state and federal law allows TANF funds to be used to cover legal costs and losses. Shannon also said that current DHS Secretary Bob Anderson, not the governor, contracted with law firm Jones Walker to litigate the lawsuit against Smith, NFL Hall of Famer Brett Favre, the University of Southern Mississippi Athletic Foundation and dozens of other defendants. Wide said the state has already paid Jones Walker more than $1 million. Wide told Kidd that Attorney General Lynn Fitch should use her own budget or funds specifically appropriated by the Legislature to pay for private attorney fees in the TANF fraud case, not federal welfare funds intended for the state’s poor residents. “While the Governor’s Office does not typically comment on pending litigation, the lawsuit currently before the court is completely without merit,” Deputy Chief of Staff Corey Custer said in a statement. The judge granted Wide’s request to amend her original complaint to add Anderson and Fitch as defendants. Kidd said he would issue a ruling within 10 days.
Jackson, Mississippi —
One of the defendants named in a civil lawsuit filed by the state of Mississippi to recoup wasteful spending of Temporary Assistance for Needy Families (TANF) has filed his own lawsuit against Governor Tate Reeves.
Austin Smith, according to a 14-page complaint filed in Hinds County Circuit Court, argues that the governor violated state law by using Temporary Assistance for Needy Families funds to pay a private law firm because “the Attorney General is authorized to sue on behalf of state agencies.” Defendant Reeves can only sue “if the Attorney General declines to represent him when requested.”
Smith is the nephew of former Mississippi Department of Human Services Commissioner John Davis, who was the central figure in the largest fraud scheme in state history involving more than $77 million that went to politically connected power brokers rather than some of the poorest people in the nation’s poorest state.
Smith’s attorney, Jim Wide, said the state is suing Smith to recover more than $400,000 for computer services contracts he received from Davis. Wide said the state is arguing that Smith was not qualified to receive the contracts.
At a hearing Monday, Hinds County Circuit Judge Winston Kidd heard arguments from both sides after Reeves’ attorneys filed a motion to dismiss Smith’s lawsuit against the governor.
Rex Shannon, an attorney representing the governor, told the judge that Smith’s arguments are legally insufficient and that the lawsuit should be dismissed because he has not satisfied his claim against the governor against the state.
Shannon argued that state and federal law allows the state to use TANF funds to cover legal costs and losses. He said current DHS Secretary Bob Anderson, not the governor, hired the law firm Jones Walker to file the lawsuit against Smith, NFL Hall of Famer Brett Favre, the University of Southern Mississippi Athletic Foundation and dozens of other defendants. Wide said the state has already paid more than $1 million to Jones Walker.
Wide told Kidd that Attorney General Lynn Fitch must use her own budget, or funds specifically appropriated by Congress, to pay for private attorney fees in TANF fraud cases, rather than using federal welfare dollars intended for the state’s poor.
“While the Governor’s Office does not typically comment on pending litigation, the lawsuit currently being filed in court is completely without merit,” Deputy Chief of Staff Corey Castor said in a statement.
The judge granted Waid’s request to amend his original complaint and add Anderson and Fitch as defendants. Kidd said he would rule on the case within 10 days.