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Nonprofit founder who helped officials raid Mississippi’s welfare fund becomes latest witness for the feds

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Nonprofit founder who helped officials raid Mississippi’s welfare fund becomes latest witness for the feds

Federal authorities in Mississippi have added another defendant to their witness list in their prosecution of the still unfolding welfare scandal: Christi Webb, former director of the nonprofit Family Resource Center of North Mississippi.

Webb pleaded guilty Thursday to one count of theft concerning federal funds, the latest criminal charge within the scheme that began with state arrests in 2020.

As one of the leaders of a state-sanctioned initiative called Families First for Mississippi, Webb was a key figure in some of the diversion of $77 million in federal anti-poverty funds away from poor families under the administration of former Gov. Phil Bryant. Most of the money came from a flexible federal block grant called Temporary Assistance for Needy Families, or TANF.

As part of her plea, Webb has agreed to cooperate with prosecutors in their ongoing probe into widespread corruption inside the welfare program overseen by Bryant and his appointed welfare director John Davis. Davis pleaded guilty to state and federal charges in September.

Bryant has not faced any charges, although text messages uncovered by Mississippi Today illustrate Bryant’s involvement in various parts of the scheme, including the promise to “open a hole” for former NFL legend Brett Favre’s pharmaceutical venture, which eventually received $2 million in stolen welfare funds. Bryant has denied any wrongdoing.

Bryant has denied any wrongdoing, saying he did not carefully read his text messages to understand what Favre was requesting.

Webb has already made allegations that the former governor manipulated welfare spending during his time in office, Mississippi Today first reported. Webb was a supporter of former Attorney General Jim Hood, Gov. Tate Reeves’ Democratic opponent for governor in 2019, and had hired his wife to run one of the nonprofit’s local family resource centers.

That election year, a local lawmaker threatened Webb on behalf of Bryant, Webb told Mississippi Today through her attorney Casey Lott, who currently sits on FRC’s board.

Lott said the north Mississippi Republican lawmaker told Webb, “FRC will never receive another dollar from the state if you don’t fire Debbie Hood.”

“He explicitly said, ‘I’m the governor’s messenger,” Lott said.

Federal authorities have remained silent about who they are targeting in their ongoing investigation. But state officials including State Auditor Shad White, who originally investigated the case, and Hinds County District Attorney Jody Owens, who secured the first indictments, say they intend to investigate “everybody top to bottom.”

“John Davis is critical because the ladder continues to move up,” Owens said after Davis’ guilty pleas.

Webb pleaded guilty to a bill of information, which occurs when a defendant waives a grand jury indictment. The single count against Webb, the first criminal charge she has faced, mirrors the bill of information Davis pleaded guilty to in September.

So far, all the charges that the U.S. Attorney’s Office have filed in the welfare scandal revolve around money that flowed from the state welfare department through private nonprofits to retired professional wrestlers Teddy DiBiase Jr. and Brett DiBiase.

Lott said Webb ran her welfare grant in accordance with guidance from her attorneys and the welfare department’s state plan.

“The US attorneys will say, ‘Well, the state plan is not consistent with the TANF guidelines.’ Well, that’s a state problem. That’s not a Christi Webb problem. She didn’t create that plan. The state created that plan intentionally broad so they could use it as their slush fund,” Lott said Friday.

Lott, who had been representing Webb pro bono until recently, said he would not have advised Webb to take the plea and that he only stopped representing her after the U.S. Attorney’s Office argued he had a conflict of interest. Because she could not afford one, Webb was represented in her plea by federal public defender Abby Edwards.

Officials have never alleged that Webb received misspent funds personally. The other nonprofit founder originally arrested in the scandal, Nancy New, was accused of personally benefiting from the scheme because she funneled money to her for-profit school and agreed to accept stock in the pharmaceutical company she funded.

Forensic auditors estimated that Family Resource Center, which Webb had served as director from 2005 until stepping down as director this week, misspent at least $11.5 million worth of welfare funds from 2016 to 2019. Her federal criminal charges only cover a fraction of that — $700,000 in TANF funds and nearly $500,000 in federal emergency food assistance funds that Webb funneled to companies owned by retired professional wrestler Teddy DiBiase Jr.

By agreeing with the information, Webb admits that Davis directed her to award sham contracts to DiBiase Jr., though Davis knew the wrestler was unqualified to provide welfare-related services.

“As a result, Webb, through FRC, intentionally misapplied federal funds to various individuals and entities for social services that were not provided,” the bill of information reads. “… As a result of the actions of Webb, Davis, Person 1 (Nancy New), Person 2 (Teddy DiBiase Jr.), and others, millions of dollars in federal safety net funds were diverted from needy families and low-income individuals in Mississippi from at least 2016 to at least 2019.”

The charge comes with a maximum sentence of up to 10 years.

Webb’s federal criminal exposure was foreshadowed in the September bill of information against Davis. In it, federal authorities included Webb, Nancy New, Teddy DiBiase Jr. and one other resident of Hinds County as unnamed co-conspirators.

Teddy DiBiase Jr.’s brother, Brett DiBiase, a resident of Clinton, a town in Hinds County, pleaded guilty to new federal charges against him earlier this month. Brett DiBiase was also the first person to plead guilty to state charges in 2020. In addition to hundreds of thousands from the nonprofits, Brett DiBiase received a $48,000 contract directly from the welfare department for opioid addiction education training he did not conduct because he was himself checked into a luxury rehab facility. Officials also paid $160,000 in welfare funds to the rehab facility for Brett DiBiase’s treatment, auditors found.

The DiBiase brothers are the sons of famous retired WWE wrestler Ted “The Million Dollar Man” DiBiase Sr., whose Christian ministry Heart of David also allegedly improperly received $1.7 million in welfare funds.

Mississippi Department of Human Services is suing all three men, as well as Webb, Davis, New and dozens of others, in its large civil case that attempts to claw back the misspent money.

Teddy DiBiase Jr. and Nancy New have never been charged federally with crimes related to the welfare scandal, though federal agents did attempt to seize DiBiase’s house in 2020 during their investigation. The U.S. Attorney’s Office also charged Nancy New and her son Zach New in 2021 with defrauding the Mississippi Department of Education as part of a separate scheme related to their for-profit private schools.

In early March, Teddy DiBiase Jr. and his wife Kristen DiBiase agreed with the federal government for the U.S. Marshal Service to sell their home, a nearly 6,000-square-foot, $1.5 million lakeside property in the Madison community of Reunion. After paying the remaining mortgage and any taxes on the house, the federal government will hold the assets pending the conclusion of the forfeiture case.

The court document that spells out the agreement of the sale says one reason for the sale is to prevent foreclosure. Teddy DiBiase Jr. and his LLCs collected over $3 million in revenue from the welfare fund during the scandal, much of which from Webb’s nonprofit.

The admission that Webb intentionally misapplied federal welfare funds is a departure from statements Webb made through Lott in recent months.

“The DiBiase’s and their organizations contracted to provide services to needy families,” Lott said in a written statement in September. “The problem is they didn’t hold up to their end of the bargain. And once they refused to do everything Christi asked them to do, she refused to award any additional subgrants to those organizations. This enraged John Davis. He yelled and cursed Christi and other FRC employees for not sending them money anyway. He threatened to cut their funding if Christi didn’t do what he told her to do. And when she stood her ground and did the right thing, he followed through with his threat. Christi is the only one who ever told John Davis ‘no,’ and she was punished for it. She was forced to lay hundreds of people off. Those innocent people who were providing much needed services to the North Mississippi community lost their job because Christi stood up to John Davis and did the right thing. So, to say she’s a ‘co-conspirator’ is absurd.”

Around the time of this squabble in March of 2019, Davis told Teddy DiBiase Jr. he had communicated with Gov. Reeves, then lieutenant governor, about the situation with Webb, according to text messages Mississippi Today obtained.

“Tate Reeves just called me said he wanted me to know they don’t give two shits about the BC or Christi to keep doing what I’m doing. Boom,” Davis texted Teddy DiBiase Jr. in March of 2019. Phone records show Davis also saved Reeves number two days after this text. (Mississippi Today could not confirm what BC in his text stands for, but two sources believed it could be a typo).

Reeves’s office told Mississippi Today in September that the governor did not recall calling Davis and “doesn’t really know” Webb.

Webb pleaded guilty before U.S. District Court Judge Carlton Reeves, the same judge that oversaw the pleas of Nancy and Zach New, Davis and Brett DiBiase.

Webb’s sentencing is set for June 16, but like the others, her sentencing could be delayed until the prosecution is closer to a conclusion. No one criminally charged within the welfare scandal has been sentenced and none is currently incarcerated.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

Trump nominates Baxter Kruger, Scott Leary for Mississippi U.S. attorney posts

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mississippitoday.org – mississippitoday.org – 2025-07-01 17:02:00


President Donald Trump nominated Baxter Kruger and Scott Leary for U.S. attorney positions in Mississippi’s Southern and Northern Districts, respectively. Kruger, a 2015 Mississippi College School of Law graduate and current director of the Mississippi Office of Homeland Security, was previously an assistant U.S. attorney for the Southern District. Scott Leary, a University of Mississippi School of Law graduate, has extensive experience as a federal prosecutor, including time in Tennessee and the Northern District of Mississippi. Both nominations will proceed to the U.S. Senate for confirmation. Leary expressed honor and anticipation for the confirmation process.

President Donald Trump on Tuesday nominated Baxter Kruger to become Mississippi’s new U.S. attorney in the Southern District and Scott Leary to become U.S. attorney for the Northern District. 

The two nominations will head to the U.S. Senate for consideration. If confirmed, the two will oversee federal criminal prosecutions and investigations in the state. 

Kruger graduated from the Mississippi College School of Law in 2015 and was previously an assistant U.S. attorney for the Southern District. He is currently the director of the Mississippi Office of Homeland Security. 

Sean Tindell, the Mississippi Department of Public Safety commissioner, oversees the state’s Homeland Security Office. He congratulated Kruger on social media and praised his leadership at the agency. 

“Thank you for your outstanding leadership at the Mississippi Office of Homeland Security and for your dedicated service to our state,” Tindell wrote. “Your hard work and commitment have not gone unnoticed and this nomination is a testament to that!” 

Leary graduated from the University of Mississippi School of Law, and he has been a federal prosecutor for most of his career. 

He worked for the U.S. Attorney’s Office in the Western District of Tennessee in Memphis from 2002 to 2008. Afterward, he worked at the U.S. Attorney’s Office for the Northern District of Mississippi in Oxford, where he is currently employed. 

Leary told Mississippi Today that he is honored to be nominated for the position, and he looks forward to the Senate confirmation process. 

This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post Trump nominates Baxter Kruger, Scott Leary for Mississippi U.S. attorney posts appeared first on mississippitoday.org



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

This article presents a straightforward news report on President Donald Trump’s nominations of Baxter Kruger and Scott Leary for U.S. attorney positions in Mississippi. It focuses on factual details about their backgrounds, qualifications, and official responses without employing loaded language or framing that favors a particular ideological perspective. The tone is neutral, with quotes and descriptions that serve to inform rather than persuade. While it reports on a political appointment by a Republican president, the coverage remains balanced and refrains from editorializing, thus adhering to neutral, factual reporting.

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Mississippi Today

Jackson’s performing arts venue Thalia Mara Hall is now open

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mississippitoday.org – @MSTODAYnews – 2025-06-30 17:29:00


Thalia Mara Hall in Jackson has reopened after over 10 months of closure due to mold, asbestos, and air conditioning issues. Outgoing Mayor Chokwe A. Lumumba celebrated the venue’s reopening as a significant cultural milestone. The hall closed last August and recently passed inspection after extensive remediation. About \$5 million in city and state funds were invested to bring it up to code. Some work remains, including asbestos removal from the fire curtain beam and installing a second air-conditioning chiller, so seating capacity is temporarily reduced to 800. Event bookings will start in the fall when full capacity is expected.

After more than 10 months closed due to mold, asbestos and issues with the air conditioning system, Thalia Mara Hall has officially reopened. 

Outgoing Mayor Chokwe A. Lumumba announced the reopening of Thalia Mara Hall during his final press conference held Monday on the arts venue’s steps. 

“Today marks what we view as a full circle moment, rejoicing in the iconic space where community has come together for decades in the city of Jackson,” Lumumba said. “Thalia Mara has always been more than a venue. It has been a gathering place for people in the city of Jackson. From its first class ballet performances to gospel concerts, Thalia Mara Hall has been the backdrop for our city’s rich cultural history.” 

Thalia Mara Hall closed last August after mold was found in parts of the building. The issues compounded from there, with malfunctioning HVAC systems and asbestos remediation. On June 6, the Mississippi State Fire Marshal’s Office announced that Thalia Mara Hall had finally passed inspection. 

“We’re not only excited to have overcome many of the challenges that led to it being shuttered for a period of time,” Lumumba said. “We are hopeful for the future of this auditorium, that it may be able to provide a more up-to-date experience for residents, inviting shows that people are able to see across the world, bringing them here to Jackson. So this is an investment in the future.”

In total, Emad Al-Turk, a city contracted engineer and owner of Al-Turk Planning, estimates that $5 million in city and state funds went into bringing Thalia Mara Hall up to code. 

The venue still has work to be completed, including reinstalling the fire curtain. The beam in which the fire curtain will be anchored has asbestos in it, so it will have to be remediated. In addition, a second air-conditioning chiller needs to be installed to properly cool the building. Until it’s installed, which could take months, Thalia Mara Hall will be operating at a lower seating capacity of about 800. 

“Primarily because of the heat,” Al-Turk said. “The air conditioning would not be sufficient to actually accommodate the 2,000 people at full capacity, but starting in the fall, that should not be a problem.”

Al-Turk said the calendar is open for the city to begin booking events, though none have been scheduled for July. 

“We’re very proud,” he said. “This took a little bit longer than what we anticipated, but we had probably seven or eight different contractors we had to coordinate with and all of them did a superb job to get us where we are today.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post Jackson’s performing arts venue Thalia Mara Hall is now open appeared first on mississippitoday.org



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

The article presents a straightforward report on the reopening of Thalia Mara Hall in Jackson, focusing on facts and statements from city officials without promoting any ideological viewpoint. The tone is neutral and positive, emphasizing the community and cultural significance of the venue while detailing the challenges overcome during renovations. The coverage centers on public investment and future prospects, without partisan framing or editorializing. While quotes from Mayor Lumumba and a city engineer highlight optimism and civic pride, the article maintains balanced, factual reporting rather than advancing a political agenda.

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Mississippi Today

‘Hurdles waiting in the shadows’: Lumumba reflects on challenges and triumphs on final day as Jackson mayor

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mississippitoday.org – @ayewolfe – 2025-06-30 17:08:00


Chokwe Antar Lumumba reflected on his eight years as Jackson mayor during a final press conference outside the recently reopened Thalia Mara Hall. He praised his team and highlighted achievements like avoiding a state takeover of public schools, suing Siemens for faulty water meters, paving 144 streets, and a recent significant drop in crime. Lumumba acknowledged constant challenges, including the COVID-19 pandemic, water crises, a trash pickup strike, and a federal corruption indictment linked to a stalled hotel project. He confirmed he will not seek office again, returning to his private law practice as longtime state Sen. John Horhn prepares to take office.

On his last day as mayor of Jackson, Chokwe Antar Lumumba recounted accomplishments, praised his executive team and said he has no plans to seek office again.

He spoke during a press conference outside of the city’s Thalia Mara Hall, which was recently cleared for reopening after nearly a year of remediation. The briefing, meant to give media members a peek inside the downtown theater, marked one of Lumumba’s final forays as mayor.

Longtime state Sen. John Horhn — who defeated Lumumba in the Democratic primary runoff — will be inaugurated as mayor Tuesday, but Lumumba won’t be present. Not for any contentious reason, the 42-year-old mayor noted, but because he returns to his private law practice Tuesday.

“I’ve got to work now, y’all,” Lumumba said. “I’ve got a job.”

Thalia Mara Hall’s presumptive comeback was a fitting end for Lumumba, who pledged to make Jackson the most radical city in America but instead spent much of his eight years in office parrying one emergency after another. The auditorium was built in 1968 and closed nearly 11 months ago after workers found mold caused by a faulty HVAC system – on top of broken elevators, fire safety concerns and vandalism.

“This job is a fast-pitched sport,” Lumumba said. “There’s an abundance of challenges that have to be addressed, and it seems like the moment that you’ve gotten over one hurdle, there’s another one that is waiting in the shadows.” 

Outside the theater Monday, Lumumba reflected on the high points of his leadership instead of the many crises — some seemingly self-inflicted — he faced as mayor. 

He presided over the city during the coronavirus pandemic and the rise in crime it brought, but also the one-two punch of the 2021 and 2022 water crises, exacerbated by the city’s mismanagement of its water plants, and the 18-day pause in trash pickup spurred by Lumumba’s contentious negotiations with the city council in 2023. 

Then in 2024, Lumumba was indicted alongside other city and county officials in a sweeping federal corruption probe targeting the proposed development of a hotel across from the city’s convention center, a project that has remained stalled in a 20-year saga of failed bids and political consternation. 

Slated for trial next year, Lumumba has repeatedly maintained his innocence. 

The city’s youngest mayor also brought some victories to Jackson, particularly in his first year in office. In 2017, he ended a furlough of city employees and worked with then-Gov. Phil Bryant to avoid a state takeover of Jackson Public Schools. In 2019, the city successfully sued German engineering firm Siemens and its local contractors for $89 million over botched work installing the city’s water-sewer billing infrastructure.

“I think that that was a pivotal moment to say that this city is going to hold people responsible for the work that they do,” Lumumba said. 

Lumumba had more time than any other mayor to usher in the 1% sales tax, which residents approved in 2014 to fund infrastructure improvements.

“We paved 144 streets,” he said. “There are residents that still are waiting on their roads to be repaved. And you don’t really feel it until it’s your street that gets repaved, but that is a significant undertaking.”

And under his administration, crime has fallen dramatically recently, with homicides cut by a third and shootings cut in half in the last year.

Lumumba was first elected in 2017 after defeating Tony Yarber, a business-friendly mayor who faced his own scandals as mayor. A criminal justice attorney, Lumumba said he never planned to seek office until the stunning death of his father, Chokwe Lumumba Sr., eight months into his first term as mayor in 2014.

“I can say without reservation, and unequivocally, we remember where we started. We are in a much better position than we started,” Lumumba said. 

Lumumba said he has sat down with Horhn in recent months, answered questions “as extensively as I could,” and promised to remain reachable to the new mayor.

This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post 'Hurdles waiting in the shadows': Lumumba reflects on challenges and triumphs on final day as Jackson mayor appeared first on mississippitoday.org



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Center-Left

The article reports on outgoing Jackson Mayor Chokwe Antar Lumumba’s reflections without overt editorializing but subtly frames his tenure within progressive contexts, emphasizing his self-described goal to make Jackson “the most radical city in America.” The piece highlights his accomplishments alongside challenges, including public crises and a federal indictment, maintaining a factual tone yet noting contentious moments like labor disputes and governance issues. While it avoids partisan rhetoric, the focus on social justice efforts, infrastructure investment, and crime reduction, as well as positive framing of Lumumba’s achievements, aligns with a center-left perspective that values progressive governance and accountability.

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