JACKSON, Miss. (WLBT) – Text messages and courtroom testimony Wednesday painted a picture of a close personal relationship between former Mississippi Department of Human Services Executive Director John Davis and Ted DiBiase Jr., who is on trial accused of stealing welfare funds.
DiBiase, a former pro wrestler, is charged with money laundering, theft, wire fraud, and conspiracy in what prosecutors have described as the state’s largest embezzlement scandal.
If convicted, DiBiase faces a maximum of 20 years in prison on each count of wire fraud, 10 years on each count of theft and money laundering, and five years for conspiracy.
Davis, the former head of the Department of Human Services, returned to the witness stand Wednesday. Prosecutors presented text messages between Davis, DiBiase, and his brother Brett — who has already pleaded guilty to state and federal in the welfare scandal.
The messages showed the three men developed a close and intimate relationship.
The three often used the phrase “I love you.”
In one message prosecutors showed the jury, Davis told DiBiase he would die for him. DiBiase responded that it would be his honor to die for Davis as well.
Prosecutors argue the DiBiase brothers showered Davis with affection and a close friendship, and in turn, Davis showered them with taxpayers’ dollars that were meant to help needy families.
According to prosecutors, Davis directed welfare funds to two nonprofits: the Family Resource Center of North Mississippi, operated by Christi Webb, and the Mississippi Community Education Center, operated by Nancy New. Both women have pleaded guilty in the scandal.
Those nonprofits then awarded contracts to DiBiase’s companies. Davis testified he knew DiBiase was not able to perform the duties outlined in the contracts but continued to steer them to him anyway.
DiBiase received six contracts and collected more than $2 million. Davis testified DiBiase knew the money was intended for welfare needs.
After Davis concluded his testimony, Shannon Lott took the stand. Lott previously served as director of the leadership and employment department at the agency.
Lott testified he did not know why DiBiase was brought on board and said he never sought out DiBiase’s help with any leadership programs or initiatives. Lott said programs DiBiase was connected to never developed, including the RISE Program.
“RISE didn’t rise,” Lott told the court.
Lott also questioned why the former pro wrestler was involved with so much despite not being an employee with the agency.
Lott recalled working under Davis as toxic, describing his former boss as a tyrant.
One workday in 2019, Lott said Davis berated him and that he was on the verge of quitting.
Lott testified conditions did not improve until both Davis and DiBiase left the agency, and that after Davis resigned, he never saw DiBiase at MDHS again.
Prosecutors maintain the contracts DiBiase received were shams and that he did not perform any work, instead pocketing the more than $2 million meant to help needy families.
They accused DiBiase of using that money to buy luxury items, including a boat and a home in Madison County.
The prosecution argued DiBiase never produced a receipt showing how any of the money was spent.
Lott is expected to return to the witness stand when court resumes Thursday morning.
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