Former Wrestler Charged in Mississippi Welfare Fraud Case

JACKSON, Miss. (AP) — Corporations run by a former professional wrestler obtained “sham contracts” in Mississippi and misspent thousands and thousands of {dollars} of welfare cash that was supposed to assist a few of the neediest individuals within the U.S., based on a brand new federal indictment.

The indictment of former wrestler Ted “Teddy” DiBiase Jr., 40, of Madison, Mississippi, was unsealed Thursday, two days after it was issued by a grand jury in Jackson.

It’s the newest growth in a sprawling Mississippi corruption case involving rich and well-connected individuals receiving contracts from the state Division of Human Companies from 2016 to 2019.

DiBiase was a WWE wrestler within the 2000s and 2010s. The indictment accuses him and co-conspirators, together with former Mississippi Division of Human Companies director John Davis, of fraudulently acquiring federal cash and utilizing it for their very own profit.

In keeping with the indictment, Davis directed funds from The Emergency Meals Help Program (TEFAP) and the Momentary Help for Needy Households (TANF) program to 2 nonprofit organizations — Household Useful resource Heart of North Mississippi Inc. and Mississippi Group Schooling Heart.

Davis directed the organizations’ administrators to award contracts in 2017 and 2018 to DiBiase’s firms, Priceless Ventures LLC and Familiae Orientem LLC, for social providers that the businesses didn’t present, the indictment stated.

“DiBiase allegedly used these federal funds to purchase a car and a ship, and for the down fee on the acquisition of a home, amongst different expenditures,” the Justice Division stated in a information launch Thursday.

The Related Press left a telephone message with DiBiase’s lawyer Thursday, searching for touch upon the indictment.

DiBiase is charged with one depend of conspiracy to commit wire fraud and to commit theft regarding applications receiving federal funds, six counts of wire fraud, two counts of theft regarding applications receiving federal funds and 4 counts of cash laundering.

If convicted, he would resist 5 years in jail for the conspiracy depend, as much as 20 years for every wire fraud depend and as much as 10 years for every depend of theft regarding applications receiving federal funds and for every depend of cash laundering, the Justice Division stated.

Davis pleaded guilty final 12 months to prices tied to welfare misspending in state’s largest public corruption case.

The welfare misspending scandal has ensnared high-profile figures, together with retired NFL quarterback Brett Favre, who is just not dealing with felony prices however is amongst greater than three dozen defendants in a civil lawsuit that the present Human Companies director filed to attempt to recuperate a few of the welfare cash wasted whereas Davis was in cost.

Mississippi has ranked among the many poorest states within the U.S. for many years, however solely a fraction of its federal welfare cash has been going towards direct help to households. As an alternative, the Mississippi Division of Human Companies allowed well-connected individuals to use up tens of thousands and thousands of welfare {dollars} from 2016 to 2019, based on the state auditor and state and federal prosecutors.

Momentary Help for Needy Households cash helped pay for pet initiatives of the rich, together with $5 million for a volleyball area that Favre supported at his alma mater, the College of Southern Mississippi, Mississippi Auditor Shad White stated. Favre’s daughter performed volleyball on the college beginning in 2017.

Copyright 2023 The Associated Press. All rights reserved. This materials will not be revealed, broadcast, rewritten or redistributed.