Back in 2021, the DiBiase family was ordered to repay millions of dollars to the state of Mississippi for their part (along with NFL quarterback Brett Favre and many others) in an embezzlement scheme where more than 77 million dollars of federal funds intended for needy families was instead illegally spent or misappropriated.
Earlier today, a federal indictment was unsealed that revealed Ted DiBiase Jr. is charged with six counts of wire fraud and four counts of money laundering, among other things. Each wire fraud charge comes with a maximum penalty of 20 years in prison, whereas each money laundering charge comes with a maximum penalty of 10 years in prison.
You can read the full list of charges against the former WWE star below:
A federal indictment was unsealed today in Mississippi charging a former professional wrestler with misappropriating millions of dollars in federal safety-net funds intended for needy families and low-income individuals in Mississippi.
According to court documents, Theodore Marvin DiBiase Jr., 40, of Madison, 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 Temporary Assistance for Needy Families (TANF) program – that they misappropriated for their own personal use and benefit.
Davis was the executive director of the Mississippi Department of Human Services (MDHS). As part of the alleged scheme, after federal funds were issued to MDHS, Davis directed MDHS to subgrant the funds to two nonprofit 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 sham contracts that were awarded to DiBiase’s companies, Priceless Ventures LLC and Familiae Orientem LLC.
As further alleged in the indictment, under these sham contracts, 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.
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. 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.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi, Special Agent in Charge Jermicha Fomby of the FBI Jackson Field Office, Special Agent in Charge Tamala Miles of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Dax Roberson of the Department of Agriculture Office of Inspector General (USDA-OIG), and Special Agent in Charge James E. Dorsey of the IRS Criminal Investigations (IRS-CI) Atlanta Field Office made the announcement.
The FBI, HHS-OIG, USDA-OIG, and IRS-CI are investigating the case.
Trial Attorney Adrienne E. Rosen of the Criminal Division’s Money Laundering and Asset Recovery Section, Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Dave Fulcher and John Meynardie for the Southern District of Mississippi are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Allegedly stealing millions of dollars away from people in need in order to buy yourself a boat and a house is a total scumbag move, if that’s indeed what happened.
We’ll bring you more on this story as we have it, Cagesiders.