Ted dibiase arriving at the "be A STAR" Summer Event at Andaz Hotel on August 11, 2011 in Los Angeles, CA (Photo from Shutterstock)
- The U.S. Department of Justice unsealed a federal indictment in April 2023 charging the WWE star for his role in allegedly misappropriating millions of dollars in federal welfare funds.
Former professional wrestler Ted DiBiase, Jr. will stand trial in Mississippi for his alleged role in the state’s largest public welfare embezzlement scheme using Temporary Assistance for Needy Families, or TANF, funds totaling upwards of $77 million.
DiBiase’s is the first case to go to trial in the scheme, which was first reported nearly six years ago.
The U.S. Department of Justice unsealed a federal indictment in April 2023 charging the WWE star for his role in allegedly misappropriating millions of dollars in federal safety-net funds intended for needy families and low-income individuals in Mississippi.
DiBiase 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.
He has previously pleaded not guilty and has been free on bond for nearly three years ahead of the federal trial.
If convicted, the Justice Department said 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.
According to court documents, DiBiase, along with co-conspirators John Davis, Christi Webb, Nancy New, and others, are alleged to have fraudulently obtained federal funds – including from The Emergency Food Assistance Program (TEFAP) and the TANF program – that they misappropriated for their own personal use and benefit.
The Justice Department alleges that Davis, then-executive director for the Mississippi Department of Human Services (MDHS), directed the state agency to subgrant the funds to two non-profit organizations, Family Resource Center of North Mississippi Inc. (FRC) and Mississippi Community Education Center (MCEC), which were operated by Webb and New, respectively.
Davis then allegedly directed Webb and New to award sham contracts to various individuals and entities purportedly for the delivery of social services, including at least five contracts that were awarded to DiBiase’s companies, Priceless Ventures LLC and Familiae Orientem LLC.
The Justice Department further alleges that FRC and MCEC provided millions of dollars in federal funds from MDHS to DiBiase and his companies for social services that DiBiase did not provide and did not intend to provide.
DiBiase allegedly used these federal funds to buy a vehicle and a boat, and for the down payment on the purchase of a house, among other expenditures.
Other figures in the scheme have pleaded guilty to state and/or federal charges, including Davis, Nancy and Zach New, Ted’s brother Brett DiBiase, Ann McGrew, Jacob Van Landingham, and Webb.
Davis is serving a 32-year sentence for state charges and is awaiting sentencing for the federal charges. All others continue to await their sentencing.
Frank Corder
