A former WWE star is accused of stealing millions in federal welfare funds that were meant for social services in what prosecutors claim is the largest public corruption case in Mississippi’s history. The allegations include the purchase of a luxury mansion costing $1 million.
Ted DiBiase Jr., the son of wrestling icon “Million Dollar Man” Ted DiBiase Sr., has found himself facing serious consequences after charges were dropped against him on Wednesday.
It’s alleged that DiBiase misused the funds to buy a $1.4 million house, a $55,000 pontoon boat, a $34,000 tractor, and a $40,000 truck, as reported by AL.com.
His lawyers argued that the evidence presented by prosecutors wasn’t strong enough to secure a conviction. However, a federal judge overseeing the case denied their request to dismiss the charges.
At 43, DiBiase finds himself in the midst of the alleged scam, having received over $3 million from John Davis, former director of the Mississippi Department of Human Services, as noted by AL.com.
Davis has already pleaded guilty to both state and federal charges related to this scandal, which involved misallocating funds from programs designed to assist the needy.
The funds were apparently divided among two other co-conspirators, Christie Webb and Nancy New, who created fake contracts with several companies, including at least five contracts linked to DiBiase’s businesses, Priceless Ventures LLC and Familiae Orientem LLC.
From 2017 to 2018, DiBiase received $3 million that was part of this scheme.
Both Webb and New have also entered guilty pleas and claimed that Davis encouraged them to funnel money to DiBiase.
Federal prosecutors accused him of “misappropriating millions of dollars from federal safety net funds intended for poor and low-income families in Mississippi.” DiBiase alleged that the funds were utilized by the state to develop an app aimed at combating poverty, as reported by WLBT.
Kevin McClendon, a creative services company owner, testified that he collaborated with DiBiase on this app, which the state paid for during its initial months of operation.
However, the app was never completed, and prosecutors determined that DiBiase broke his contract by failing to deliver the promised services.
Davis reportedly knew DiBiase was not capable of fulfilling the contract terms while still directing welfare funds meant for both of them.
The widespread fraud scheme is suspected to have disbursed around $77 million to various individuals, including notable figures like NFL Hall of Famer Brett Favre and former University of Oklahoma star Marcus Dupree.
Mississippi has initiated a lawsuit against 38 individuals to reclaim $24 million in misappropriated funds.
Another former wrestler, Brett DiBiase, has already pleaded guilty to conspiracy to defraud the U.S. and may face up to five years in prison.
Davis received a 32-year sentence for state crimes, and his federal sentencing is still pending.
DiBiase is facing 13 charges, including wire fraud and money laundering, but he will not appear as a witness in court.
He remains the only defendant contesting the allegations. If found guilty, he risks up to 120 years in prison.
