Ted DiBiase, sons Ted & Brett sued by Mississippi for misued federal funds

Ted DiBiase and his sons Ted Jr. and Brett DiBiase have been sued by the state of Mississippi as the state seeks to reclaim $24 million dollars of misused federal funds meant for welfare.

Mississippi Today (h/t WLOX) is reporting that the DiBiase family have been named in a civil lawsuit by the Mississippi Department of Human Services. 38 people overall are being sued over squandering welfare money meant to address poverty in the state.

The lawsuit alleges that Nancy New and her son Zack New used their nonprofit to illegally funnel 'tens of millions' of dollars into other nonprofits. John Davis, who was then the director of the Mississippi Department of Human Services, befriended Ted DiBiase Jr. and elevated him within the department to receive payment from two of the New nonprofits totaling over $3 million dollars in anti-poverty funds. The funds were meant to “address the multiple needs of inner-city youth” despite DiBiase Jr. possessing no qualifications to provide those services in relation to the federal grant called Temporary Assistance for Needy Families, or TANF. 

Davis was reindicted in March on bribery and conspiracy charges. Nancy and Zack New, who recently pleaded guilty on seperate federal charges for using public school funds for their private school, have recieved plea deals in the state welfare fraud case and are cooperating with prosecutors.

Ted DiBiase Jr., the lawsuit alleges, later urged Davis to divert $1.7 million to Ted DiBiase Sr.’s ministry called Heart of David. However, DiBiase allegedly used some of the money for his own personal expenses.

Brett DiBiase, who also received money from two of New's nonprofits, faced criminal charges as a result of his part in the misuse of TANF funds and pleaded guilty to fraud in 2020. He later agreed to cooperate with prosecutors.

The lawsuit lists Ted DiBiase Sr. owing $1,971,223, Ted DiBiase Jr. $2,897,487, and Brett DiBiase $824,258.

Others named in the lawsuit include football stars Brett Farve, Paul Lacoste, and Marcus Dupree,