Witness testifies she was ordered to give DiBiase millions in welfare funds
JACKSON, Miss. (WLBT)
A key witness in the state’s largest embezzlement scandal took the stand Thursday, admitting the contracts she awarded to Ted DiBiase Jr. were fraudulent and totaled more than $3.2 million in welfare funds.
Christi Webb, who operated the Family Resource Center of North Mississippi, testified that her nonprofit was responsible for distributing millions of dollars in grant money to organizations across the state. She told the court she gave DiBiase’s companies a total of four contracts.
Contract breakdown:
The first contract was for $250,000.
It called for work to be performed between June and September 2017, along with an annual payment of $250,000 for the following four years.
The second contract, issued in May 2018, was for $500,000.
One week later, DiBiase received a third contract for $497,000.
A month after that, in June 2018, he received a fourth contract for $1 million.
Webb’s testimony:
Webb told jurors she regrets issuing the contracts and testified that DiBiase did not fulfill the duties outlined in them. She said she was ordered to give DiBiase the contracts by John Davis, the former head of the Mississippi Department of Human Services, and that she followed those instructions out of fear Davis would cut funding to her organization.
Webb testified that at their height, her organization was receiving roughly $20 million in funding from MDHS. That funding was cut by more than $6 million in 2018.
After the cut, Webb said she informed DiBiase she could no longer pay him. She testified that when Davis learned of this, he told her she had to continue paying DiBiase.
During a phone conversation, Webb said Davis began crying and told her the only way he could keep friends was by paying them.
Davis has already pleaded guilty to state and federal charges in the case. He testified that he directed contracts and money to go to DiBiase.
He directed welfare funds to two nonprofits: the Family Resource Center of North Mississippi, operated by Webb, and the Mississippi Community Education Center, operated by Nancy New, who has also pleaded guilty to state and federal charges.
During his testimony, Davis told the court that DiBiase knew the money was supposed to be used for welfare needs.
Webb also told the court she believes DiBiase was manipulating Davis.
Defense argument:
The defense maintains DiBiase did nothing wrong, arguing he performed legitimate services under the contracts and did not steal any money.
Defense attorney Scott Gilbert made a return to the courtroom Thursday after becoming ill in January, which caused the trial to be paused for more than a month.
Charges and potential sentence:
DiBiase is charged with money laundering, theft, wire fraud, and conspiracy in what prosecutors have described as the state’s largest embezzlement scandal.
If convicted, he 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.
Webb is expected to continue her testimony when court resumes Friday morning.
A key witness in the state’s largest embezzlement scandal took the stand Thursday, admitting the contracts she awarded to Ted DiBiase Jr. were fraudulent and totaled more than $3.2 million in welfare funds.
Christi Webb, who operated the Family Resource Center of North Mississippi, testified that her nonprofit was responsible for distributing millions of dollars in grant money to organizations across the state. She told the court she gave DiBiase’s companies a total of four contracts.
Contract breakdown:
The first contract was for $250,000.
It called for work to be performed between June and September 2017, along with an annual payment of $250,000 for the following four years.
The second contract, issued in May 2018, was for $500,000.
One week later, DiBiase received a third contract for $497,000.
A month after that, in June 2018, he received a fourth contract for $1 million.
Webb’s testimony:
Webb told jurors she regrets issuing the contracts and testified that DiBiase did not fulfill the duties outlined in them. She said she was ordered to give DiBiase the contracts by John Davis, the former head of the Mississippi Department of Human Services, and that she followed those instructions out of fear Davis would cut funding to her organization.
Webb testified that at their height, her organization was receiving roughly $20 million in funding from MDHS. That funding was cut by more than $6 million in 2018.
After the cut, Webb said she informed DiBiase she could no longer pay him. She testified that when Davis learned of this, he told her she had to continue paying DiBiase.
During a phone conversation, Webb said Davis began crying and told her the only way he could keep friends was by paying them.
Davis has already pleaded guilty to state and federal charges in the case. He testified that he directed contracts and money to go to DiBiase.
He directed welfare funds to two nonprofits: the Family Resource Center of North Mississippi, operated by Webb, and the Mississippi Community Education Center, operated by Nancy New, who has also pleaded guilty to state and federal charges.
During his testimony, Davis told the court that DiBiase knew the money was supposed to be used for welfare needs.
Webb also told the court she believes DiBiase was manipulating Davis.
Defense argument:
The defense maintains DiBiase did nothing wrong, arguing he performed legitimate services under the contracts and did not steal any money.
Defense attorney Scott Gilbert made a return to the courtroom Thursday after becoming ill in January, which caused the trial to be paused for more than a month.
Charges and potential sentence:
DiBiase is charged with money laundering, theft, wire fraud, and conspiracy in what prosecutors have described as the state’s largest embezzlement scandal.
If convicted, he 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.
Webb is expected to continue her testimony when court resumes Friday morning.
