According to Wapt.com, a federal grand jury in Mississippi indicted Ted DiBiase Jr., a former professional wrestler from Madison, for misappropriating millions of dollars that were intended for needy families. This is the first indictment to be handed down in Mississippi’s extensive welfare fraud scandal. When DiBiase appeared in federal court on Thursday, he was in custody and appeared with shackles on his ankles, chains at his waist, and handcuffs.
The U.S. Department of Justice released a statement alleging that DiBiase fraudulently obtained federal funds from The Emergency Food Assistance Program and the Temporary Assistance for Needy Families program. The indictment accuses DiBiase, along with former Mississippi Department of Human Services Executive Director John Davis, Christi Webb, Nancy New, and others, of misappropriating the funds for their personal use and benefit.
The prosecutors alleged that Davis instructed Webb and New, the president of New Summit School, to award sham contracts to various individuals and entities. These contracts were supposedly for the delivery of social services, including at least five sham contracts awarded to DiBiase’s companies, Priceless Ventures LLC and Familiae Orientem LLC. The indictment claims that millions in federal funds from MDHS were given to DiBiase and his companies for social services that DiBiase did not provide.
According to the indictment, DiBiase used these federal funds to purchase a vehicle and a boat, and for the down payment on a house, among other expenditures. He is charged with one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds, six counts of wire fraud, two counts of theft concerning programs receiving federal funds, and four counts of money laundering. DiBiase pleaded not guilty during the hearing.
State Auditor Shad White issued a statement expressing his gratitude to the prosecutors for continuing to advance this case. He also stated that his office will continue to support their efforts with the evidence that their investigators and federal investigators have uncovered.
During the hearing, prosecutors revealed that DiBiase tested positive for marijuana and Adderall. His attorney explained that DiBiase used hemp oil and consumed a CBD gummy, which resulted in the positive marijuana test. The attorney also disclosed that DiBiase had been diagnosed with ADHD, and although his prescription had expired two years ago, he had been using his brother’s prescription.
DiBiase, who was released on bail, left the courthouse saying, “Jesus loves you, brother. God bless you, man.”
The trial is set for June 19, and if convicted, DiBiase faces a maximum penalty of five years in prison for the conspiracy count, a maximum penalty of 20 years in prison for each wire fraud count, and a maximum penalty of 10 years in prison for each count of theft concerning programs receiving federal funds and for each count of money laundering.
In addition to the criminal charges, Mississippi Department of Human Services Executive Director Bob Anderson announced that the agency has filed civil lawsuits against 38 entities connected to the $88 million fraud scheme. When asked about former Gov. Phil Bryant and NFL Hall of Famer Brett Favre, Anderson stated that he could not speak about Favre due to active litigation and had no comment on the former governor at this point. Anderson assured the public that MDHS is cooperating with the federal investigation and will support it in any way they deem appropriate. A spokesperson for Bryant released a statement refuting the allegations made against him, stating that every claim against these individuals was discovered and prosecuted as a result of an investigation that he requested from the state auditor.
