As we previously reported here on eWn, Ted DiBiase Jr. has been charged with one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds, six counts of wire fraud, two counts of theft concerning programs receiving federal funds, and four counts of money laundering.
Pwinsider has now shared additional details on the charges from the indictment, which was unsealed yesterday.
According to the indictment, DiBiase Jr. fraudulently obtained federal funds from The Emergency Food Assistance Program (TEFAP) and the Temporary Assistance for Needy Families (TANF) programs along with his co-conspirators John Davis, Christi Webb, Nancy New, and others so that he could misappropriate the money for his own personal use.
DiBiase Jr. allegedly used two companies, Priceless Ventures LLC and Familiae Orientem LLC, to obtain money from at least five “sham contracts” that were used to loot the funds from TEFAP, TANF, the Mississippi Department of Human Resources, and other federal programs. DiBiase Jr. also happens to be the manager and owner of Priceless Ventures LLC and owns 99% of Familiae Orientem LLC.
The allegations further claim that DiBiase Jr. “knowingly and willfully, that is, with the intent to further the objects of the conspiracy, conspired and agreed” to commit wire fraud and to steal from projects receiving federal funds beginning in 2019 and continuing through “in or around” 2019 and the contracts were awarded to them for the purpose of delivering social services, even though it was known that “the recipients were not qualified to provide social services and/or would not provide them.”
DiBiase Jr. allegedly received his payments in full or “almost full” regardless of whether any work had been performed, and “knowing that no work likely would ever be performed.”
DiBiase Jr. is claimed to have inappropriately used the welfare funds for a down payment on a house, including the purchase of a boat and a vehicle among other things, and that the WWE alumni never followed through with what he was originally contracted to do.
The indictment details the alleged sham contracts:
* May 15th, 2018: The Family Resource Center of North Mississippi Inc., which was provided with federal funds through the MDHS, entered into a sham contract with DiBiase via Priceless LLC for $500,000 for leadership outreach services. The contract provided two payments totaling that amount.
* Around the same time, the Mississippi Community Education Center entered into a second sham contract with Priceless for an additional $500,000 payment made, and DiBiase deposited $1,020,833.33 into a bank account for Priceless LLC on May 17th.
* May 22nd, 2018: The FRC entered into another sham contract with Priceless LLC for $497,987 to “purportedly assess the need for emergency food assistance.”
* June 26th, 2018: The FRC entered into a sham contract with DiBiase for $1 million, “purportedly to create the RISE Program to address the needs of inner-city youth.”
* October 1st, 2018: Priceless LLC signed a $250,000 agreement “for the delivery of services” for MCEC.
The wire fraud charge is in relation to DiBiase Jr. transferring funds from the account for Familiae LLC to one for K&T Management, another company that he owned, along with $401,304.37 in money transferred to buy property.
The government is currently seeking forfeiture of that property in Madison, Mississippi along with any funds that DiBiase Jr. received and profited from in relation to the alleged crimes he was involved in.
If convicted, DiBiase Jr. will face a maximum penalty of five years in prison for the conspiracy count, a maximum penalty of 20 years in prison for each wire fraud count, and a maximum penalty of 10 years in prison for each count of theft concerning programs receiving federal funds and for each count of money laundering.
According to prosecutors during the court hearing, DiBiase Jr. tested positive for Adderall and marijuana on the morning of his arrest. His lawyer cited that DiBiase Jr. had used hemp oil and taken a CBD gummy, and has been diagnosed with ADHD which is the reason for the use of Adderall. However, the lawyer admitted that his client did not have a current prescription and had used his brother’s prescription medication.
DiBiase Jr.’s next court date is on June 19th in Jackson, Mississippi.
