Mississippi has joined the list of states embroiled in major fraud scandals, as a welfare scheme trial centered around WWE stars is set to kick off this week.
The embezzlement scheme saw at least $77 million of taxpayers’ hard-earned money go toward frivolous things instead of helping those in need in America’s poorest state, according to authorities.
Instead of helping the less fortunate, cash was splurged on a lavish home in Jackson, cars, paying off a non-profit leader’s speeding ticket, and funding a new $5 million volleyball stadium at Mississippi University, among other items, authorities said.
A total of seven people have pleaded guilty to state or federal charges related to the fraud case, but one person, former pro wrestler Ted DiBiase Jr., has decided to plead not guilty and stand trial.
His brother, Brett DiBiase, 37, was also charged in the welfare-fraud scandal. Brett, who also wrestled professionally, pleaded guilty to state and federal charges.
Meanwhile, his older brother, who received the Million Dollar Championship title in 2010 from their wrestler father, Ted DiBiase Sr., is the only person indicted after he chose to fight money laundering, wire fraud, theft, and conspiracy charges.
The trial, which is set to begin Tuesday, will detail how DiBiase, 43, allegedly pocketed around $4 million in welfare dollars that he used for himself.
The fraud in Mississippi comes as similar allegations continue to sweep across Minnesota that suggest alleged scammers, most of Somali descent, are said to have spent millions meant to feed hungry children on flashy cars and swanky travels, according to court evidence obtained by CBS.
According to prosecutors, DiBiase allegedly concealed money through phony contracts with non-profit organizations, including the Mississippi Community Education Center, in a conspiracy to steal funds from welfare programs, including Temporary Assistance for Needy Families (TANF).
Prosecutors said DiBiase embezzled around $1.1 million and used the cash to buy luxurious items, including a boat and a vehicle.
Per the contracts, two companies owned by DiBiase were allegedly supposed to look into the need for emergency food aid, provide leadership outreach to the community, and help inner-city children.
But, according to the indictment reviewed by The Wall Street Journal, the married father-of-two ‘did not provide and did not intend to provide’ those assistance programs to Mississippians.
Meanwhile, DiBiase said he has brought forward ‘significant evidence that he did perform work under the relevant contracts,’ according to a November court filing obtained by the outlet.
The only person involved in the scandal who has been sentenced for his crimes is former Department of Human Services Head John Davis.
A judge decided Davis, the highest-ranking official embroiled in the conspiracy, will spend 32 years in prison for state charges. He has not yet been sentenced for his federal crimes, WLBT reported.
He was found guilty of having tens of millions of dollars go toward specific non-profits before he took the money for his own personal use.
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