Mississippi Today
WWE wrestler fights new federal indictment in welfare scandal, which his attorney calls ‘armchair quarterbacking’

WWE wrestler fights new federal indictment in welfare scandal, which his attorney calls ‘armchair quarterbacking’
Former WWE wrestler Ted “Teddy” DiBiase Jr. was sitting on the front row behind former Mississippi welfare director John Davis while the now disgraced government bureaucrat testified before Congress in 2019.
Davis, who was at the time admittedly orchestrating a stunning welfare fraud scheme, was telling members of the U.S. House of Representatives Committee on Agriculture about the supposedly life changing work his department was conducting instead of making food assistance available to more Mississippians.
“We know that it takes investment in our staff through things like Law of 16,” Davis told congress members, “which is our personal and professional development programs for our staff members, to then replicate that over with our clients to make sure that they are empowered to be whom they have been called to be.”

Law of 16 was DiBiase Jr.’s nebulous motivational speaking series, one of the projects for which he received roughly $3 million in federal welfare funds from Temporary Assistance for Needy Families (TANF) and The Emergency Food Assistance Program.
Today, nearly four years after the director spoke openly in the nation’s capital about his work, DiBiase Jr. is facing criminal charges for the first time within the larger unfolding welfare scandal, in which officials stole or misspent tens of millions of federal public assistance funds.
He pleaded not guilty and if convicted on all counts in the indictment unsealed Thursday, DiBiase Jr. faces a maximum penalty of up to 175 years in prison.
“It was the government that chose to run this program this way. And it was not a secret. This was done in front of everybody. It was done in front of the United States Congress. This was not a secret. This was not, as the federal law would say, a scheme or artifice to defraud,” Scott Gilbert, DiBiase Jr.’s criminal defense attorney, told Mississippi Today two weeks ago. “So what we’re doing now, for the most part, is second guessing and armchair quarterbacking the way government was run. And that’s not what the criminal law is for.”
This indictment, handed down by a federal grand jury, is the first that the U.S. Attorney’s Office has secured in the welfare case. Each of the other five federal defendants pleaded guilty to bills of information, which are used when a defendant chooses to plead guilty without the case going to a grand jury.
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DiBiase Jr. joins his younger brother Brett DiBiase, who also received hundreds of thousands in welfare funds, to become the eighth person to be charged criminally within the scandal, including those only charged in state court. DiBiase Jr., his brother and their father, former WWE star Ted “The Million Dollar Man” DiBiase, are all facing civil charges in a parallel lawsuit Mississippi Department of Human Services has filed against nearly four dozen people or organizations. DiBiase Sr. has not faced criminal charges.
Under the new indictment, DiBiase Jr. faces 13 criminal counts under Title 18 of the U.S. Code, the main criminal code of the federal government, ranging from conspiracy, wire fraud, theft of federal funds and money laundering.
“It’s ironic that he was involved with the Law of 16, a questionable program at best, because he’s now going to get familiar with the Law of 18, which is Title 18 of the U.S. Code,” quipped current Mississippi Department of Human Services Director Bob Anderson, a former prosecutor tapped by Gov. Tate Reeves to lead the welfare agency after the scandal broke in 2020.
Anderson has said he is cooperating with the federal authorities in their ongoing investigation for his entire tenure at MDHS.
“I believe they will do everything to bring all additional charges they think are appropriate in this case,” he added after DiBiase Jr.’s arraignment Thursday.
Prosecutors say DiBiase Jr. secured at least five “sham contracts” in 2017 and 2018 with two nonprofits, Mississippi Community Education Center and Family Resource Center of North Mississippi, who were receiving tens of millions of federal welfare funds to run a statewide anti-poverty initiative called Families First for Mississippi. The directors of those nonprofits, Nancy New and Christie Webb, have both pleaded guilty within the scheme.
Davis and DiBiase Jr. met after the director initially hired his younger brother, Brett DiBiase, in an executive level position at MDHS in 2017, despite him lacking qualifications for the job. Davis became close with the DiBiase brothers, first Brett and then Teddy. Their communication reflects a familial relationship in which they discussed their faith, hardships, and told each other, “I love you.”
Davis retired from office in mid-2019, shortly after the D.C. trip, after his deputy, Jacob Black, who is facing his own charges in the parallel civil suit, brought a tip of suspected fraud to former Gov. Phil Bryant. In the months leading up to his ousting, Davis expressed concern that his relationship with DiBiase Jr. had weakened.
“I hate that you feel that way,” DiBiase Jr. wrote to Davis in a March 2019 text message. “… You definitely don’t have to ‘chase’ after me … Just want you to know I love you dearly, and I’m so grateful for your friendship.”
In its civil suit, MDHS alleges DiBiase Jr. “exploited his close relationship with John Davis to further enrich his family and friends.”
Under Davis’ direction, the nonprofits made up front payments to DiBiase Jr. “regardless of whether any work had been performed and knowing that no work likely ever would be performed,” the new indictment alleges.
The nonprofits hired DiBiase Jr. to perform vague services — such as leadership outreach, addressing the needs of inner city youth and assessing the need for emergency food assistance — with little requirement of outcomes.
But according to audit reports, interviews and a review of communication, Davis frequently required DiBiase Jr. to accompany him in his day-to-day executive meetings and tasks, interrupting DiBiase Jr.’s duties under the contract.

“It’s just sort of bizarre to think of the executive director of the Department of Human Services actually conducting himself on a regular basis in ways that thwart and interfere with the ability of the contractor to do the work. But that’s exactly what went on, on a regular basis,” Gilbert said.
“You’ve got a guy who’s here that’s trying to perform and do what he’s supposed to do, and to a large extent he does,” Gilbert said. “And then you’ve got this person running MDHS that for whatever reason feels like the best use of Teddy’s time is not to perform his contracts, but to follow him around to meetings and to other events and things like that. And it just, it’s nonsensical. … I don’t know of anybody that understands really what that was about other than just, it’s just pure absurdity.”
The indictment alleges that the money that went to DiBiase Jr. “were diverted from needy families and low-income individuals in Mississippi.”
However, states have long legally diverted funds from the national Temporary Assistance for Needy Families program away from families in need. Since welfare reform in the 90’s, when TANF was created, states have used the lax guidelines in federal statute to shrink the side of the program that provides monthly cash assistance, known as the welfare check, and put the money instead into other programs or pet projects.
Even today, Mississippi’s welfare agency uses only about 5% of its TANF block grant on the welfare check.
While the other TANF programs are supposed to serve one of three other goals — promoting job preparation and marriage, preventing out-of-wedlock pregnancies and encouraging two-parent families — the federal government provides virtually no oversight to ensure that the programs supported by these funds actually correspond with these goals.
In the case of the Mississippi welfare scandal, which involves officials using $5 million in TANF funds to build a volleyball stadium at University of Southern Mississippi, the spending had become especially egregious.
The indictment alleges DiBiase Jr. used the federal funds he received to buy himself a vehicle and a boat and to put a down payment on a roughly $1.5 million lakeside home in the Madison community of Reunion, which the federal government has since seized.
Gilbert is confident the federal government doesn’t have a viable case against his client. He says there are several problems with the prosecution’s legal theory. In the welfare fraud case, prosecutors have used a specific theft or bribery statute, 18 U.S. Code § 666, which applies to agents of an organization or agency that receives federal funds obtaining funding by fraud. Two of DiBiase Jr.’s 13 counts fall under this statute. Gilbert said his client cannot be charged with this crime since he was not an agent of an organization that received federal funds. He makes the distinction that because DiBiase Jr. was a contractor under the nonprofit, not the state agency, he was never an agent of the federal funds.
Gilbert also contests the government’s claim that DiBiase Jr.’s contracts were a “sham.” DiBiase Jr. did conduct work under the contracts, Gilbert said, and any work he did not conduct was as a result of Davis’ interference.
“The big issue from a criminal defense perspective is: Did someone obtain money or property from the government by being dishonest? And what I can tell you in this case is, these contracts, the work that was done, I’ve yet to see a single shred of evidence that would show that Teddy DiBiase was dishonest with anybody about anything in order to get these contracts. These contracts were awarded to him. They came to him. He didn’t solicit anything from MDHS. He undertook these contracts and attempted to perform the work.”
“So what this boils down to is do people feel like this was an appropriate use of TANF money or other money to carry out the function of government?” Gilbert continued. “That’s a fair question, and that’s a question that reasonable people absolutely can disagree about. But it’s not a crime. You resolve your dissatisfaction with the way the government functions at the polling place.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1966, Milton Olive III awarded Medal of Honor

April 21, 1966

Milton Olive III became the first Black soldier awarded the Congressional Medal of Honor in the Vietnam War.
Olive had known tragedy in his life, his mother dying when he was only four hours old. He spent his early youth on Chicago’s South Side and then moved to Lexington, Mississippi, where he stayed with his grandparents.
In 1964, he attended one of the Mississippi Freedom Schools, and he joined the work in Freedom Summer, registering Black voters. Concerned that he might be killed, his grandmother sent him back to Chicago, where he joined the military on his 18th birthday.

“You said I was crazy for joining up,” he wrote. “Well, I’ve gone you one better. I’m now an official U.S. Army Paratrooper.”
He joined the U.S. Army’s 173rd Airborne Brigade and became known as “Preacher” for his quiet demeanor and his tendency to avoid cursing. On Oct. 22, 1965, helicopters dropped Olive and the 3rd Platoon of Company B into a dense jungle near Saigon. They returned fire on the Viet Cong, who retreated. As the soldiers pursued the enemy, a grenade was thrown into the middle of them. Olive grabbed the grenade and fell on it, absorbing the blast with his body.
“It was the most incredible display of selfless bravery I ever witnessed,” the platoon commander said.
Olive saved his fellow soldier’s lives. Then-President Lyndon B. Johnson presented the medal to his father and stepmother, and he has since been honored with a park and a junior college named for him.
This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Mississippi Today
Podcast: Mississippi Democratic legislative leader says GOP bickering prevents work on transformative issues

Mississippi House Minority Leader Robert Johnson discusses the 2025 legislative session that was derailed by Republican infighting with Mississippi Today’s Geoff Pender and Bobby Harrison, and outlines issues he’d like to see addressed in a pending special session.
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This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Mississippi Today
‘Trainwreck on the horizon’: The costly pains of Mississippi’s small water and sewer systems

This is the first of a two-part story.
“This state ain’t nothing but a big Jackson,” Central District Public Service Commissioner De’Keither Stamps said during a December meeting that harkened back to his time as a capital city councilman. “We got a whole statewide trainwreck that’s on the horizon.”
Over a thousand drinking water systems, most of them small, and hundreds of additional sewer systems operate in Mississippi. Nearly 60 percent of those water systems, according to the Environmental Protection Agency, have committed a violation in the last three years, and one in three sewer systems in the state have violated pollution limits in just the last year.
In 2014, a couple in DeSoto County, the wealthiest part of the state, sent a letter with photos of their yard to the Mississippi Department of Environmental Quality. Tarnishing their garden were small clumps of feces and wads of wet toilet paper stuck together.
“When having company with children playing in our backyard last summer, suddenly, water and sewage began rushing out of the back flow valve, into the flower bed, across our yard and into the backyard where the children were playing,” the Olive Branch couple wrote. “Everyone had to come inside due to the sewage rushing in our yard…This went on for several hours.”
The culprit, MDEQ later identified, was the malfunctioning collection system at the Belmor Lakes Subdivision sewage treatment facility, which serves about 200 people. The couple continued sending complaints the next four years, while the state sent repeated notices of violation to the plant’s operator. The facility allowed sewage overflows from at least 2011 to 2020, records show, and it remains out of compliance to this day.
Another facility, at the Openwood Plantation in Vicksburg, exceeded fecal coliform limits as early as 2004. A 2011 inspection noted the plant’s effluent structure “has been leaking for at least two years, still not repaired.” The next year, a neighbor complained to MDEQ about a funky smelling green liquid on their property. The agency found not only was the treatment plant responsible, but it also leaked raw sewage that flowed into a local recreational lake. Over two decades after the initial violation, the facility still regularly exceeds, by significant degrees, water pollution limits for chemicals such as E.coli, chlorine and ammonia nitrogen.
Small water and sewer systems around Mississippi have for years struggled to stay afloat because of, to some degree, the nature of being a small water or sewer system. Now, as they try to correct deficiencies during a time of growing regulations and higher costs, many cash-strapped systems are facing the hard reality of needing to raise rates for necessary services in the country’s second poorest state.


“System officials think that part of the job is to hold rates at a low level, and that doesn’t necessarily jive with what the need is,” said Bill Moody, director of the Bureau of Water Supply at the Mississippi State Department of Health.
Moody spoke anecdotally of system owners who bragged about keeping rates low, unaware of the revenue shortfall they would soon have.
A 2023 EPA report on funding needs for drinking water systems found that, over the next 20 years, Mississippi will have an $8.1 billion need. That equals $2,751 per Mississippian, the fourth largest per capita need of any state. Small systems in the state had a per capita need 26% higher than that, the report’s data shows, equalling $3,456 per person.

The United States, and especially Mississippi, suffers from what industry wonks call “fragmentation.” Compared to other countries, the U.S. has a spread out population, meaning its utilities are spread out, too. But by having so many water and sewer systems serving small pockets of people, scant infrastructure funding is spread to the point it loses spending power.
“ The problems the city of Jackson has had, for instance, is replayed over and over and over again in these smaller systems,” said MDEQ executive director Chris Wells. “ What you have is these small systems that, for one reason or other, aren’t properly functioning.”
For instance, Wells explained, a developer with no utility experience might build and operate a sewage lagoon to serve a subdivision. Sometimes the developer moves or dies and passes the reins onto the homeowners association.
“We’ve had situations where the person who built the lagoon or the treatment system literally disappears, abandons the system,” Wells said.
While consolidating small systems would help, experts say, some are so far behind that their customers’ bills will go up regardless.
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“It gets a little depressing, I don’t know what the answer is,” Greg Pierce, a water policy expert at the University of California, Los Angeles said. “Usually these systems are under-maintained. They have low rates, but they also have low quality and low reliability.”
Each year, the Health Department takes the temperature of the state’s drinking water systems. In the last two years, the agency found 83 providers that were in “poor” condition. While the median population for a water system in Mississippi is around 1,400 people, that number drops to 422 for the “poor” performing systems, about 80% of which serve under a 1,000 people.
In the small town of Utica, for instance, the Reedtown Water Association has frequent power outages and boil water notices. Stamps, the Public Service commissioner for the area, said necessary repairs would cost $4 million to $5 million, “an amount far beyond what the water association and its (1,200) customers can afford.”
One water association with just 829 customers – Cascillia, in Tallahatchie County – had 83 violations in just the last 5 years, including exceeding arsenic limits in 2023. Several other small water systems (such as the Moore Bayou Water Association in Coahoma County, or Truelight Redevelopment in Sharkey County) are considered “serious violators” by the EPA for, in part, not meeting limits on disinfectant byproducts that were set in 2006. Of the state’s 19 “serious violators,” more than half serve 1,200 or fewer people. The EPA defines a small water system as serving 3,300 people or fewer.

Smaller systems struggle nationwide. A 2018 study from researchers at the University of California, Irvine and Columbia University found that systems in rural areas around the country see “substantially” more violations than those in urban areas.
Wells, of MDEQ – which oversees sewer compliance – said it’s a challenge motivating struggling systems to meet permit limits. The state can technically take over a system, but MDEQ doesn’t have the resources to do so, and levying large fines can be counterproductive because ratepayers ultimately have to make up the difference.


“Every dollar that we take in penalties is one less dollar that the community has to spend toward the upgrades that they need to make,” he said.
Wells described that, for some repeat offenders, sending them violation notices is like “trying to get blood out of a turnip.” While MDEQ works with systems to correct deficiencies, he said, sometimes the best answer is a third-party utility coming in to save the day.
The American Society of Civil Engineers’ 2024 “Infrastructure Report Card” estimated that Mississippi, between all its water and sewer systems, needed $9.4 billion in investments over the next 20 years.
“The capacity of drinking water systems in the state is mediocre,” the report says, adding that “wet weather conditions, inconsistent maintenance, and a lack of rehabilitation pose extreme threats to the state’s wastewater infrastructure.”

Between the historic amounts of federal funding from the American Rescue Plan Act and the Infrastructure Investment and Jobs Act, Mississippi received roughly $1.2 billion for water and wastewater improvements, or just 13% of the state’s projected need.
Especially with large expenses looming to meet the new national standards for PFAs, some small systems are looking to consolidate to ease financial headaches. The Oxford Eagle reported last year, for instance, that the Punkin Water Association would soon join the city of Oxford’s service area after years of water quality issues.
But given the spacial challenges of connecting far apart systems – especially in Mississippi, which, according to Census data, has the fourth most rural population of any state – some say there are limits to how much water providers can actually unify.

“When it comes to the physical pipes in the ground, you can’t move them,” said Mildred Warner, a professor of city and regional planning at Cornell University, explaining that many systems can only consolidate in terms of management.
Mississippi is experimenting with consolidating management for some of its small, privately owned water and sewer systems. In 2021, a company called Great River began buying struggling systems around the state. A subsidiary of the national firm Central States Water Resources, the company focuses on struggling, poorly financed systems that most large utility firms wouldn’t touch. Now operating in 11 states, the company has access to more resources than what a small operator would, and can reduce overall costs by spreading them out throughout its service area.
In Mississippi, part of the PSC’s job is to make sure private utilities that have a monopoly over a given service area, like Great River, only charge customers for what their services are worth, plus enough profit to stay in business. Given the challenges of some small systems in the state, the PSC welcomed the company’s help. But Great River, as is common when a large private utility takes over, quickly imposed steep rate increases to fund its repairs.
As Great River’s ratepayers plead with the PSC to soften the financial blow, the condition of some Mississippi water and sewer providers suggest those basic services will have to cost much more than they used to, especially for customers of small systems.
Part two of this story will further explore the Great River’s impact on ratepayers, and what the future holds for small water and sewer systems struggling to stay afloat.
This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
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