JACKSON, Miss. — Companies run by a former skilled wrestler acquired “sham contracts” in Mississippi and misspent thousands and thousands of {dollars} of welfare cash that was supposed to assist a few of the neediest folks within the U.S., based on a brand new federal indictment.

The indictment of former wrestler Ted “Teddy” DiBiase Jr., 40, of Madison, Mississippi, was unsealed Thursday, two days after it was issued by a grand jury in Jackson.

It is the newest improvement in a sprawling Mississippi corruption case involving rich and well-connected folks receiving contracts from the state Department of Human Services from 2016 to 2019.

DiBiase was a WWE wrestler within the 2000s and 2010s. The indictment accuses him and co-conspirators, together with former Mississippi Department of Human Services director John Davis, of fraudulently acquiring federal cash and utilizing it for their very own profit.

According to the indictment, Davis directed funds from The Emergency Food Assistance Program (TEFAP) and the Temporary Assistance for Needy Families (TANF) program to 2 nonprofit organizations - Family Resource Center of North Mississippi Inc. and Mississippi Community Education Center.

Davis directed the organizations’ administrators to award contracts in 2017 and 2018 to DiBiase’s firms, Priceless Ventures LLC and Familiae Orientem LLC, for social providers that the businesses didn't present, the indictment stated.

“DiBiase allegedly used these federal funds to buy a vehicle and a boat, and for the down payment on the purchase of a house, among other expenditures,” the Justice Department stated in a information launch Thursday.

The Associated Press left a cellphone message with DiBiase’s lawyer Thursday, searching for touch upon the indictment.

DiBiase is charged with one rely of conspiracy to commit wire fraud and to commit theft regarding applications receiving federal funds, six counts of wire fraud, two counts of theft regarding applications receiving federal funds and 4 counts of cash laundering.

If convicted, he would resist 5 years in jail for the conspiracy rely, as much as 20 years for every wire fraud rely and as much as 10 years for every rely of theft regarding applications receiving federal funds and for every rely of cash laundering, the Justice Department stated.

Davis pleaded responsible final yr to fees tied to welfare misspending in state’s largest public corruption case.

DiBiase’s brother, former professional wrestler Brett DiBiase, has pleaded responsible to state and federal fees tied to the case.

The welfare misspending scandal has ensnared high-profile figures, together with retired NFL quarterback Brett Favre, who shouldn't be dealing with prison fees however is amongst greater than three dozen defendants in a civil lawsuit that the present Human Services director filed to attempt to get better a few of the welfare cash wasted whereas Davis was in cost.

Mississippi has ranked among the many poorest states within the U.S. for many years, however solely a fraction of its federal welfare cash has been going towards direct help to households. Instead, the Mississippi Department of Human Services allowed well-connected folks to burn up tens of thousands and thousands of welfare {dollars} from 2016 to 2019, based on the state auditor and state and federal prosecutors.

Temporary Assistance for Needy Families cash helped pay for pet tasks of the rich, together with $5 million for a volleyball area that Favre supported at his alma mater, the University of Southern Mississippi, Mississippi Auditor Shad White stated. Favre’s daughter performed volleyball on the faculty beginning in 2017.

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