Mississippi Welfare Scandal: Ex-Wrestler’s Trial Starts Next Week
The highly anticipated trial of Ted DiBiase Jr. is set to commence next week, marking a pivotal moment in Mississippi’s welfare scandal. This case has uncovered one of the largest public embezzlement schemes in the state’s history, involving a conspiracy that implicated nearly a dozen individuals.
Trial Details and Charges
The jury selection for DiBiase’s trial is scheduled for four days from now. He is charged with money laundering, wire fraud, theft, and conspiracy. Notably, DiBiase is the only individual within the scandal who has chosen to contest these charges. There remains the possibility that he could accept a plea deal before the trial begins.
DiBiase is accused of misappropriating approximately $4 million in welfare funds. Allegations suggest he concealed these funds through fraudulent contracts, subsequently using the money for personal gain. As DiBiase prepares to enter the courtroom, he faces a unique challenge. Each of the other parties involved has already confessed and is cooperating with federal investigators to elucidate the case.
Key Individuals in the Scandal
- John Davis: Former head of the Department of Human Services, sentenced to 32 years for state crimes, with federal sentencing pending.
- Nancy New: Head of a nonprofit that received significant welfare funds, has pleaded guilty to state and federal charges. Sentencing is still unresolved.
- Zach New: Nancy New’s son, also pleaded guilty but awaits sentencing.
- Brett DiBiase: Ted’s brother, who has pleaded guilty to related charges and has not yet been sentenced.
- Christi Webb: Former director of another involved nonprofit, yet to be sentenced.
- Latimer Smith: A former DHS employee; details about his case remain sealed.
The scandal involved funneling welfare dollars to select nonprofits that subsequently diverted funds for personal use. Investigations revealed that part of these funds was used to support private businesses and even covered expenses for drug rehabilitation services in California. Nancy New was notable for founding New Summit School in northeast Jackson and running the Mississippi Community Education Center, which facilitated TANF funding distribution for families.
Potential Implications of the Trial
The proceedings against DiBiase are expected to influence the sentencing of those who have already pleaded guilty. Experts suggest that the final outcomes for cooperating witnesses will likely depend on the satisfaction level of prosecutors regarding their cooperation, rather than the jury’s decision on DiBiase’s case.
Prosecutors continue to explore whether additional evidence from cooperating witnesses implicates others in the conspiracy. Speculation has surrounded former Governor Phil Bryant and NFL legend Brett Favre, suggesting they may have played a role in the scandal. However, neither has faced criminal charges and both have taken legal action against media sources for alleged defamation.
The Mississippi welfare scandal represents a significant breach of public trust, and as the trial unfolds, the focus will remain on accountability and justice for the misuse of public funds.
