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Ted DiBiase Jr.’s federal welfare fraud trial continued this week in Jackson, Mississippi, with jurors hearing damaging testimony from two key witnesses who have already pleaded guilty in the state’s sprawling welfare scandal.
According to reports from Mississippi Today and WBLT Channel 3 in MS, Nancy New, founder of the Mississippi Community Education Center (MCEC), testified that she directed millions of dollars in public welfare funds to the former WWE performer at the direction of then-Mississippi Department of Human Services (MDHS) director John Davis. New told the court she was “simply told to sign” the first contract with DiBiase and admitted the agreements were fraudulent, a key reason she entered a guilty plea in both state and federal court.
According to testimony, DiBiase received more than $3.9 million in contracts through MCEC and the Family Resource Center of North Mississippi (FRC). On May 17, 2018 alone, DiBiase reportedly received more than $1 million, including two $250,000 checks from FRC, a $500,000 check from MCEC, and a monthly stipend exceeding $20,000.
New and Christi Webb, the former director of FRC, both testified that DiBiase did not perform the work required under the contracts and did not provide documentation showing how the funds were spent.
Webb, who also pleaded guilty in connection with the case, told jurors she was pressured by Davis to continue funneling money to DiBiase’s company, Priceless Ventures. She testified that DiBiase provided virtually no services in exchange for the payments, aside from submitting a list of food pantries, which she said she threw away.
Webb described emotional pressure from Davis, claiming he once told her, “The only way I can have friends is to give them money,” while insisting she continue funding DiBiase. She also alleged Davis retaliated against her nonprofit by cutting its budget after she attempted to stop payments to the former wrestler. Davis, who has also pleaded guilty, has disputed parts of that account.
DiBiase’s defense team have argued he was a legitimate independent contractor who performed services under valid agreements. They maintain the contracts did not require him to submit detailed spending reports and that he did not steal any funds. Defense attorneys also attempted to challenge Webb’s credibility, pointing to inconsistencies in her recollection of events.
DiBiase's defense team also attempted to have videos of DiBiase speaking with football legend Brett Farve introduced as evidence that he had done the contracted work. Prosecutors argued that there was no way to prove when the videos were produced and by who. The Court agreed with the Prosectuion, so a piece of evidence DiBiase believed would help his case has been prevented from being introduced.
DiBiase is facing charges of conspiracy, wire fraud, theft, and money laundering. If convicted, he faces up to 20 years in prison per wire fraud count, 10 years per theft and money laundering count, and five years for conspiracy.
He is the only defendant in Mississippi’s high-profile welfare scandal to go to trial, as seven others. including Davis, New, and Webb, have already entered guilty pleas.
The trial is ongoing.
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