Ex-WWE Star Indicted In Shocking Fraud Scheme Goes On Trial

Jury deliberations are set to begin Friday, March 20, after closing arguments wrapped Thursday in the Mississippi welfare fraud trial of former WWE wrestler Ted DiBiase Jr.

DiBiase, 43, has pleaded not guilty to 13 counts tied to allegations that federal welfare money meant for poor families was steered into sham deals and private spending. Prosecutors say the case centers on misuse of Temporary Assistance for Needy Families funds and other aid, part of a broader scandal involving more than $77 million. DiBiase’s lawyers say he was a legitimate contractor who provided services and got caught up in a messy system run by other people.

U.S. District Judge Carlton Reeves told jurors they are expected to start deliberations Friday.

Prosecutors allege DiBiase received welfare-linked payments through contracts for work that was never performed. The indictment lists one count of conspiracy to commit wire fraud and theft involving federal programs, six counts of wire fraud, two counts of theft concerning programs receiving federal funds, and four counts of money laundering. If convicted, DiBiase faces potential prison time on each count.

In closing arguments, Assistant U.S. Attorney Adrienne E. Rosen laid out what she called a straight-line money trail. She argued DiBiase spun “lies for money,” relied on “sham contracts,” and diverted more than $2.9 million from Mississippi’s “poorest people” to bankroll a “lavish lifestyle.”

Rosen walked jurors through financial records and a timeline of payments from around 2017 to 2020. She said DiBiase set up “shell companies” that helped funnel welfare dollars into purchases that included a tractor, a truck, a boat, a home in the Reunion subdivision, a Disney vacation, and an investment account. She also pointed to May 17, 2018, describing DiBiase as an “instant millionaire” after depositing two $500,000 checks tied to the Family Resource Center.

WWE wrestler Ted DiBiase-Jr.

Rosen told jurors the plan moved through nonprofit middlemen and insiders at the Mississippi Department of Human Services, alleging former DHS Director John Davis leaned on others to route funds to DiBiase. She also referenced key figures who have pleaded guilty in related cases, including Nancy New, who ran Mississippi Community Education Center and New Learning Inc., and Christi Webb, tied to the Family Resource Center.

Prosecutors framed DiBiase as a “wolf in sheep’s clothing.”

“I ask you to return the only verdict supported by the evidence which is a guilty,” Rosen told the jury.

Defense attorney Scott Gilbert argued the government overreached and tried to pin a sprawling political mess on his client. Gilbert said DiBiase was “recruited” into the situation by “a lot of knot heads,” and he painted DHS as a “poorly run” agency where chaos and backroom pressure were normal.

Gilbert attacked the credibility of witnesses, especially Webb, and noted testimony suggesting DiBiase promoted programs through interviews and radio spots. He told jurors contracts were reviewed at times by attorneys, including at least one Mississippi DHS lawyer, and argued that “nobody” who testified could say DiBiase “wasn’t performing” the work he was hired to do.

The defense portrayed DiBiase as a businessman who booked trainings, held meetings, and took contracts as presented, believing the goal was to help people. Gilbert pressed jurors with questions meant to undercut the idea of a con job.

“Why show up and work so much if you’re running a scam?” he asked. “Why is Teddy doing all these things if he is knowingly involved in a conspiracy or scheme to defraud?”

Gilbert ended with a blunt challenge: was there “enough reliable evidence,” or was the case just “a really crappy example of human behavior?”

“You know what to do,” he told jurors, urging a not guilty verdict.

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