Editor’s Note: The following report is based on ongoing trial testimony and evidence presented in federal court. All defendants are presumed innocent until proven guilty in a court of law.
New details have emerged in the ongoing welfare fraud trial of former professional wrestler Ted DiBiase Jr., as reported by 16 WAPT News Jackson, which has provided extensive coverage from the federal courthouse. Intimate text messages shared in court between the defendant, his brother Brett DiBiase, and the former director of the Mississippi Department of Human Services (MDHS), John Davis, have now been entered into evidence. These communications provide a rare look into the personal dynamics that prosecutors allege allowed for the misappropriation of millions of dollars in federal welfare funds intended for the state’s most vulnerable citizens.
Evidence of an Intimate Bond
The prosecution presented the text messages to demonstrate what they described as an “almost romantic-like relationship” between John Davis and the DiBiase brothers. These messages suggest that the professional boundaries typically expected of a high-ranking state official and a government contractor were virtually non-existent.
In a series of messages from 2018, Brett DiBiase expressed deep emotional attachment to Davis. One text from Brett to Davis stated: “I don’t know where I stand with you… Every time I think of you I want to be with you”. To this, the former Human Services director responded: “I love you. I love you. I love you”. Another message sent by Brett read: “It’s only when I’m with you I feel safe enough to sleep”. During his testimony, Davis admitted to the jury that he “got very close to Brett” during the period in question.
The evidence further detailed a July 2018 exchange involving the defendant, Ted DiBiase Jr.. In these messages, Davis told the former wrestler: “I will freaking die for you”. DiBiase Jr. responded: “It would be my honor to die for you, bro”. Prosecutors contend that this intense personal loyalty was the primary driver behind the massive infusion of cash to the DiBiase family.
Allegations of Pressured Contracts
According to the reporting from 16 WAPT News, Davis’s testimony revealed the extent to which he utilized his authority to benefit the DiBiases. He admitted to the jury that, because of this special bond, he pressured nonprofit leaders to award lucrative contracts to Ted DiBiase Jr.. Specifically, Davis pressured New School Summit founder Nancy New and Family Resource Center director Christi Webb to grant DiBiase Jr. a $497,987 contract and a separate half-million-dollar contract through New’s nonprofit organization.
The prosecution highlighted that these contracts were awarded despite what they characterized as a significant lack of oversight. Testimony indicated that DiBiase Jr. “showed no receipts or any documents on how the money was spent”. Nevertheless, Davis testified he “kept pushing to make sure DiBiase Jr. got more contracts”.
The Use of “Sham Contracts”
The core of the government’s case involves approximately $2.9 million that was allegedly funneled to DiBiase Jr. through what investigators have described as “sham contracts”. These agreements were purportedly for social services, such as motivational speaking and leadership training, but the prosecution argues they were merely a vehicle to embezzle federal funds.
The funds, derived from the Temporary Assistance for Needy Families (TANF) program, were allegedly used to support a lifestyle of luxury. Prosecutors assert that DiBiase Jr. utilized the money to purchase a new car, a new boat, and a personal residence in the city of Madison. This alleged misuse of funds stands at the center of the largest public embezzlement case in Mississippi history.
Broader Context and Prior Pleas
The trial of Ted DiBiase Jr. is a major component of a much larger investigation into the MDHS welfare scandal. In 2023, his brother, Brett DiBiase, pleaded guilty to one count of conspiracy to defraud the United States, acknowledging his role in the scheme to divert TANF funds. This guilty plea has remained a foundational element of the prosecution’s narrative as they proceed against Ted Jr..
As the trial continues, 16 WAPT News Jackson remains on-site to monitor testimony from key witnesses and the introduction of further evidence. The court is expected to hear more about the specific mechanisms allegedly used to bypass state accounting procedures and the full extent of the relationship between state officials and the nonprofits that managed the federal grants.
