A high-profile trial set to begin this week in Mississippi will lay bare one of America's most brazen welfare fraud scandals, where authorities allege at least $77 million in taxpayer funds meant for the needy was siphoned off for luxury lifestyles.
The Lavish Spending of Welfare Millions
Instead of aiding residents in the nation's poorest state, prosecutors claim the embezzled cash from the Temporary Assistance for Needy Families (TANF) programme funded a litany of personal extravagances. These included a lavish home in Jackson, expensive cars, the payment of a non-profit leader's speeding ticket, and a contribution towards a new $5 million volleyball stadium at the University of Southern Mississippi.
The scheme's central figure heading to trial is Ted DiBiase Jr., 43, a former professional wrestler and son of WWE legend the 'Million Dollar Man'. DiBiase Jr. has pleaded not guilty to charges of money laundering, wire fraud, theft, and conspiracy. He stands accused of personally pocketing approximately $4 million in welfare dollars.
Prosecutors allege he funnelled money through phony contracts with non-profit organisations, including the Mississippi Community Education Center. His companies were supposedly contracted to provide emergency food aid and community outreach but, according to an indictment, he 'did not provide and did not intend to provide' those services.
A Web of Guilty Pleas and Sentences
While DiBiase Jr. contests the charges, six others have already pleaded guilty. This includes his brother, Brett DiBiase, 37, also a former wrestler, who admitted to state and federal charges.
The only person sentenced so far is John Davis, the former head of the Mississippi Department of Human Services. As the highest-ranking official involved, he received a 32-year prison sentence on state charges and awaits sentencing for federal crimes. He was found guilty of directing tens of millions to specific non-profits before misusing the funds.
Nancy New, who ran the non-profit Mississippi Community Education Center, and her son Zach also pleaded guilty three years ago and await sentencing. They are accused of diverting millions to private businesses and even paying for drug rehabilitation services in California. New's school for special needs students has since closed.
National Calls for Tighter Welfare Controls
With the trial commencing, Mississippi's Republican State Auditor, Shad White, has intensified his call for Congress to tighten restrictions on TANF. He argues the programme 'was shot through with fraud' not only in Mississippi but elsewhere in the United States.
White specifically referenced a separate, ongoing alleged fraud scheme in Minnesota, where federal funds meant to feed children were allegedly spent on luxury cars and travel. In that case, at least 78 people have been charged in connection with a plot involving the non-profit Feeding Our Future.
Scrutiny on welfare spending has amplified nationally, with recent fraud uncovered in states including California, New York, and Georgia. The Mississippi trial, detailing how millions for the vulnerable funded wrestlers' luxuries, is set to become a stark symbol of systemic failure.
