Ted DiBiase and his sons are being asked to repay the money they received through an anti-poverty fund because a new audit determined that they failed to complete the work stipulated in their contracts.
On Wednesday, Mississippi State Auditor Shad White’s office issued a letter that demands Ted DiBiase Sr. and his two sons, Ted Jr. and Brett, pay back the money they received through the Temporary Assistance for Needy Families fund. According to the letter, the three were required to do a certain amount of work to receive the funds, but failed to do so. Among the other many names listed in the letter are former NFL quarterback Brett Favre and former Oklahoma Sooners star Marcus Dupree.
According to a February 2020 report, DiBiase Sr. initially received $2.1 million in welfare through Heart of David Ministries, his religious nonprofit organization. In the initial report, it was noted that DiBiase Sr was not indicted personally as part of the allegations, but Brett seemingly funneled money through the organization while he served as a senior official at the Mississippi Department of Human Services. The Ministries originally told reporters in 2020 that the funds were spent on church functions, but the organization didn’t file any tax documents for two years.
White’s office now demands that DiBiase pay $722,299 of the monies that his ministry received. Ted DiBiase Jr. must return $3.9 million, while DiBiase Sr.’s other son Brett, who already plead guilty for his role in the welfare scheme, must pay $225,950.
The full letter is below:
Auditor Demands Repayment of Misspent Welfare Money
October 12, 2021
Multiple audits now confirm millions of dollars intended for the poor were spent illegally
JACKSON, Miss. – State Auditor Shad White’s office served demands for more than $77 million of misspent TANF (Temporary Assistance for Needy Families) money today. The individuals who signed off on the illegal spending, like former Department of Human Services (DHS) Executive Director John Davis, along with vendors who were paid those funds yet failed to do all the work required under their contracts, received these demands.
“Two years ago my office audited DHS,” said White. “After two years of work, we found tens of millions of dollars in misspending. Those findings have now been confirmed, this month, by an independent forensic audit commissioned by DHS. It’s time for the taxpayers to attempt to recover what we lost.”
DHS’s forensic audit, which was conducted by an independent, outside CPA firm from Maryland, released its findings on October 1. “After our first DHS audit, I told the public we would have to consult with our federal partners at the Department of Health and Human Services before coming to final conclusions about who owed what money back,” said White. “Those partners were waiting for this forensic audit. Now that it’s complete, we are in a position to demand the illegally spent welfare funds be returned to the state.”
The Auditor’s office issued a demand to Davis for $96.313 million – which includes interest – for his role authorizing over $77 million in illegal TANF spending.
Two nonprofits, the Mississippi Community Education Center (MCEC) and the Family Resource Center (FRC), either misspent or improperly dispersed portions of that $77 million, meaning the money was ultimately misspent by a vendor to the nonprofit. As a result, the board and leadership of MCEC (Nancy New, Zach New, Jess New, Brian Bledsoe, Susan Floyd, Virgil “Buddy” Strickland, and Beth Purifoy) were served with a demand for $68.159 million. FRC’s board and leadership (Christy Webb, Jerry Bailey, Debbie Pickens, Jimmy Pappas, Amanda Angle, and Steven Blaylock) were served with a demand for $15.549 million.
Auditors issued additional demands to vendors who received part of the $77 million in welfare spending but did not completely fulfill the terms of their contracts:
• Austin Smith: $378,791
• Brett Dibiase: $225,950
• Favre Enterprises, along with Brett Favre and Robert Culumber: $828,000
• Heart of David Ministries, controlled by Ted Dibiase, Sr.: $722,299
• JTS Enterprises and Transformational Ventures, controlled by Brian Jeff Smith: $674,715
• The Marcus Dupree Foundation, controlled by Marcus Dupree: $789,534
• Nancy New: $2,589 (for payments received from FRC)
• NCC Ventures, controlled by Nicholas Coughlin: $237,915
• Ted Dibiase, Jr.: $3.903 million
• Warren Washington Issaquena Sharkey Community Action Agency, along with agency leaders Jan Vaughn, Jannis Williams, Janice Jelks, and Delinda Robinson: $75,261
• Zach New: $74,118 (for payments received from FRC)
Former DHS Deputy Director Jacob Black was also served with a demand for $1,824 for unallowable first-class air travel.
These board members, nonprofit executives, and individuals are liable jointly and severally for the demands. This means the individuals share responsibility for repaying portions of the total amount with John Davis.
If the demanded amounts are not repaid within 30 days, the Attorney General’s Office is responsible for enforcing the demands in court. These demands are civil in nature, not criminal. A civil demand does not imply criminal liability.
“I’m grateful that DHS’s Director Bob Anderson has worked with the Attorney General’s Office to hire an attorney to recover these funds. These demands serve as the next step in the recovery process. If there is more money that the Attorney General believes has been misspent than what we have identified in these demands, we stand ready to help them investigate if needed,” said White. “More demands are possible.”
At this time, the Mississippi Office of the State Auditor will not comment on the current criminal investigation or proceedings.
DiBiase Sr. appeared on NXT programming this summer during a feud over the Million Dollar Championship between LA Knight and Cameron Grimes. Ted Jr. recently launched a new marketing agency that helps wrestlers, athletes and veterans that are looking to build their own brands online.
