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The criminal trial for WWE star Ted DiBiase Jr. before The Mississippi Southern District Court in Biloxi, MS is slated to continue this morning at 9 AM local time. As we noted over the weekend, DiBiase's defense have pushed for a mistrial, but the Court has yet to rule on that matter. One would think that ruling would come today.
DiBiase Jr. was arrested in April 2023 on one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds, six counts of wire fraud, two counts of theft concerning programs receiving federal funds, and four counts of money laundering. The charges are part of Mississippi’s largest welfare fraud scandal, which involved more than $77 million in federal funds meant for the state’s poorest residents. Prosecutors allege the money was improperly distributed to former athletes, wrestlers, and nonprofits. DiBiase faces a potential sentence of up to 20 years per wire fraud count, 10 years per theft and money laundering count, and five years for conspiracy - if he is found guilty.
The crux of the trial centers on whether he unlawfully took Mississippi welfare funds intended for low-income families or legitimately earned the money through contracted services.
Last week, former Mississippi Department of Human Services Executive Director John Davis testified for the prosecution. Davis, whom prosecutors describe as the scheme’s ringleader, said he directed welfare funds to two nonprofits operated by Nancy New and Christi Webb, both of whom have pleaded guilty. Those nonprofits, prosecutors say, then funneled contracts to DiBiase’s companies. Davis testified that DiBiase knew the funds were intended for welfare purposes but claimed he believed DiBiase was providing legitimate services and said he never intended for the money to be stolen.
DiBiase's defense has argued that DiBiase fulfilled his contractual obligations and did not personally steal the funds. Attorneys highlighted a $250,000 contract DiBiase received in 2017 to provide leadership training, noting the agreement placed no restrictions on how the money could be spent beyond delivering the services. Prosecutors are claming that the contracts were fraudulent, alleging DiBiase pocketed more than $2 million in welfare funds and used the money to purchase a boat and a home in Madison County, MS.
Court records indicate DiBiase, his wife Kristen and the United States government had been locked in a legal battle over the Madison, MS property dating back to 2020 and that on 3/7/23, the couple signed an agreement to forfeit the property so that United States Marshalls could sell it off and recover that money. There is no word whether the property has been sold by the government as that case is still listed as open in court records.
The jury trial is expected to continue on for at least another week.
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