Mississippi TANF Welfare Scandal

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.