Mississippi auditor says welfare fraud is ‘incredibly easy’ as ex-WWE star faces trial
Mississippi auditor Shad White joins ‘Fox & Friends’ to discuss welfare fraud and gaps in oversight of grant-funded nonprofits.
Jury selection is set to begin this week in Mississippi’s high-profile welfare fraud trial, as the state’s top auditor warns it is "incredibly easy" to take advantage of the system.
"I testified before Congress years ago and said all across the country, there are systemic weaknesses in these programs and fraud is happening. Unfortunately, D.C. politicians did nothing," Mississippi State Auditor Shad White said Tuesday on "Fox & Friends."
White said the case exposes weaknesses in welfare oversight that impact taxpayers nationwide. Mississippi is among several states where federal officials say fraud went undetected.
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"This has been going on… in multiple states around the country," White said, adding that increased enforcement under the Trump administration has brought more cases to light.
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"What we needed was a president who would come into office, who's not afraid of being called names, who just wants to stop the nonsense that is happening to taxpayers," he added.
According to White, federal welfare money is distributed to states and funneled to third-party nonprofits with little oversight, creating opportunities for misuse. He said nonprofit leaders in Mississippi are accused of using welfare funds for personal purchases, including homes and cars.
WWE Superstar Ted DiBiase Jr. attends the WWE SummerSlam VIP Kick-Off Party at the Beverly Hills Hotel in Beverly Hills, California, on Aug. 16, 2012. The image predates the legal troubles that later led to DiBiase Jr. being charged in a large fraud scheme. (Jason Merritt/Getty Images For WWE)
"The heads of the nonprofits started doling out money, both to the benefit of the folks who are running the state agency here in Mississippi and then to the benefit of some of their friends," White said.
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Prosecutors allege at least $77 million in taxpayer funds were misused in Mississippi, with some funds going toward personal purchases instead of the welfare programs they were intended for. Seven people have already pleaded guilty in the case to either state or federal charges.
Minnesota Gov. Tim Walz announced he will not seek re-election during a press conference at the State Capitol in St. Paul, Minnesota, on Jan. 5. Walz said he could not devote his full effort to a campaign and took no questions from reporters as the state faces ongoing federal investigations into large-scale social services fraud. (Jerry Holt/The Minnesota Star Tribune via Getty Images)
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Former WWE star Ted DiBiase Jr. has been charged with participating in the fraud scheme. Prosecutors accuse him of pocketing millions in welfare funds. The trial is set to begin this week, and he has pleaded not guilty.
Federal authorities in Minnesota are also investigating allegations of widespread fraud involving childcare and other social services programs. Democratic Gov. Tim Walz announced Monday he will not seek re-election as the state faces ongoing federal investigations.
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