WASHINGTON (TNND) — The federal trial of former World Wrestling Entertainment star Ted DiBiase Jr. began Tuesday, January 6, stemming from his alleged role in a massive Mississippi welfare fraud scheme involving more than $77 million in federal funds.
DiBiase Jr., 43, was indicted in April 2023 along with several others accused of misusing money from the Temporary Assistance for Needy Families (TANF) program and the Emergency Food Assistance Program. Prosecutors say the funds were intended to support low-income families but were instead diverted for personal use.
According to investigators, DiBiase conspired with former Mississippi Department of Human Services Executive Director John Davis, as well as nonprofit leaders Christi Webb of the Family Resource Center of North Mississippi Inc. and Nancy New of the Mississippi Community Education Center.
Prosecutors allege Davis directed Webb and New to knowingly funnel federal funds through sham contracts, including awarding at least five fraudulent contracts to companies controlled by DiBiase. Authorities say DiBiase used the misappropriated funds to purchase a boat, a vehicle, and to make a down payment on a home.
The Justice Department has charged DiBiase with one count of conspiracy to commit wire fraud and theft involving federal programs, six counts of wire fraud, two counts of theft concerning programs receiving federal funds, and four counts of money laundering.
If convicted, DiBiase faces up to five years in prison on the conspiracy charge, up to 20 years for each wire fraud count, and up to 10 years for each theft and money laundering count.
Several co-conspirators — including Webb, Davis, Nancy New, and New’s son, Zachary New — have already pleaded guilty. While Webb, Nancy New, and Zachary New have not yet been sentenced, Davis is currently serving a 32-year prison sentence for his role in the scheme.
