A former WWE star is facing the possibility of decades in prison after being accused of playing a role in what officials have described as Mississippi's largest-ever public corruption scheme.
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Ted DiBiase Jr., 43, is alleged to have misused millions of dollars in federal welfare funds that were intended for social services.
According to reports, prosecutors claim DiBiase used the money to fund a lavish lifestyle. This included the purchase of a million-dollar home and other luxury items.
WWE Star Arrested in Major Welfare Fraud Case
Per court documents, cited by AL.com, DiBiase faces multiple charges, including money laundering, theft, wire fraud, and conspiracy.
Investigators allege that companies linked to DiBiase received funds through what have been described as "sham contracts" arranged by individuals overseeing welfare programs.
The programs in question reportedly include the Emergency Food Assistance Program and Temporary Assistance for Needy Families.
"The indictment says co-conspirator John Davis, former director of the Mississippi Department of Human Services, would direct his department to subgrant the funds to two nonprofit organizations -- Family Resource Center of North Mississippi and Mississippi Community Education Center -- which were operated by co-conspirators Christi Webb and Nancy New, respectively," AL.com's Heather Gann wrote.
"Davis would then direct Webb and New to award "sham contracts" to individuals and entities supposedly for social services, including at least five such contracts issued in 2017 and 2018 to Priceless Ventures LLC and Familiae Orientem LLC, two companies operated by DiBiase."
Millions Allegedly Spent on Luxury Purchases
Prosecutors allege that DiBiase used the funds to purchase a $1.4 million home, along with other high-value items including a $55,000 pontoon boat, a $34,000 Kubota tractor and a $40,000 truck.
If convicted, DiBiase could face significant prison time. According to the U.S. Attorney's Office, each wire fraud charge carries a maximum sentence of 20 years, while theft and money laundering charges each carry up to 10 years. The conspiracy charge carries a potential five-year sentence.
The case has already seen several key figures plead guilty, including former Mississippi Department of Human Services director John Davis and DiBiase's brother, Brett DiBiase.
The wider scheme is believed to involve approximately $77 million in misdirected welfare funds distributed to various individuals, including celebrities and athletes.
Among those alleged to have been connected to the case are DiBiase's father, WWE Hall of Famer Ted DiBiase, as well as NFL Hall of Famer Brett Favre, former college football star Marcus Dupree and NFL linebacker Paul Lacoste.
To date, the State of Mississippi has filed lawsuits against up to 38 individuals in an effort to recover around $24 million in misspent funds as the investigation continues to unfold.
