Ted DiBiase Jr. Acquitted in Mississippi TANF Welfare Fraud Case
A federal jury in Jackson, Mississippi, on Friday acquitted former WWE wrestler Ted “Teddy” DiBiase Jr. on 13 counts of conspiracy, wire fraud, theft and money laundering tied to Mississippi’s massive welfare-misuse scandal. Prosecutors had alleged DiBiase fraudulently obtained millions in federal anti-poverty funds—largely from Temporary Assistance for Needy Families (TANF) and the Emergency Food Assistance Program—for sham contracts and then spent some of the money on a vehicle, boat and a home down payment, while his companies received more than $2 million for services such as leadership outreach and inner-city youth programs that were allegedly never provided. U.S. Attorney Baxter Kruger said he still believed in the government’s case but respected the jury’s verdict, and DiBiase’s lawyers did not immediately comment. DiBiase is the only criminal defendant in the scandal to go to trial; former state Human Services director John Davis, several nonprofit executives and DiBiase’s brother, ex-wrestler Brett DiBiase, have all pleaded guilty in related schemes that auditors say diverted more than $77 million in TANF money away from Mississippi’s poor. The acquittal does not end DiBiase’s legal exposure—he, his brother, their father Ted DiBiase Sr., retired NFL quarterback Brett Favre, and former Gov. Phil Bryant are among dozens of defendants in a separate state civil lawsuit seeking to recover over $20 million in allegedly misspent funds—highlighting how accountability for the welfare scandal is splitting between successful plea deals and at least one failed criminal prosecution.
📌 Key Facts
- A federal jury on March 20, 2026, found Ted DiBiase Jr. not guilty on 13 federal counts including conspiracy, wire fraud, theft and money laundering.
- Prosecutors alleged DiBiase’s companies received more than $2 million in contracts funded by TANF and the Emergency Food Assistance Program for services that were never performed.
- Mississippi’s state auditor says more than $77 million in TANF funds were misspent in the broader welfare scandal, for which former MDHS director John Davis, nonprofit leaders and Brett DiBiase have pleaded guilty.
- DiBiase Jr., his brother, their father Ted DiBiase Sr., Brett Favre and former Gov. Phil Bryant are defendants in an ongoing Mississippi civil suit seeking to claw back over $20 million in alleged improper payments.
📊 Relevant Data
In Mississippi, approximately 80.4% of adult TANF recipients are Black, compared to 37.8% of the state's population being Black as of 2020.
Characteristics and Financial Circumstances of TANF Recipients, Fiscal Year 2020 — Administration for Children and Families, U.S. Department of Health and Human Services
The poverty rate among Black residents in Mississippi is approximately 31.6%, compared to about 12% for White residents, contributing to higher TANF participation rates among Black families.
Poverty by Race 2026 — World Population Review
Mississippi's TANF program reaches only 3 families for every 100 families in poverty, one of the lowest ratios in the U.S., meaning the $77 million misspent could have supported many more needy families.
TANF Cash Assistance Should Reach Many More Families in Mississippi to Alleviate Hardship — Center on Budget and Policy Priorities
Improper payments, including fraud, in federal welfare programs are estimated at 7.3% of total payments, indicating that while fraud occurs, it is not the norm in welfare administration.
Welfare Fraud — Federal Safety Net
📰 Source Timeline (1)
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