Former WWE wrestler Ted DiBiase Jr. indicted in Mississippi welfare fraud case

Former WWE superstar Ted DiBiase Jr. has been indicted in Mississippi on charges that he misappropriated millions of dollars in federal safety-net funds intended for needy families and low-income individuals.

DiBiase, 40, of Madison, Miss., is alleged to have fraudulently obtained federal funds – including from The Emergency Food Assistance Program and the Temporary Assistance for Needy Families program.

Last year, the Mississippi Department of Human Services filed a civil suit against DiBiase, his father, WWE Hall of Famer Ted DiBiase Sr., known in his pro-wrestling days as “The Million Dollar Man,” retired NFL star Brett Favre and others to recover more than $20 million that had allegedly been misappropriated from the TANF program.

In the indictment made public today, prosecutors allege that John Davis, the executive director of the Mississippi Department of Human Services, directed MDHS to subgrant the funds to two nonprofit organizations, Family Resource Center of North Mississippi Inc. and Mississippi Community Education Center, which were operated by Christi Webb and Nancy New, respectively.

Davis then is alleged to have directed Webb and New to award sham contracts to various individuals and entities purportedly for the delivery of social services, including at least five sham contracts that were awarded to DiBiase Jr.’s companies, Priceless Ventures LLC and Familiae Orientem LLC.

Prosecutors say that, under these sham contracts, FRC and MCEC provided millions of dollars in federal funds from MDHS to DiBiase Jr. and his companies for social services that he did not provide and did not intend to provide.

DiBiase Jr. then 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.

DiBiase Jr. 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.

If convicted, he 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.