The defense began calling witnesses in the federal welfare fraud trial of former WWE wrestler Ted DiBiase Jr. on Monday after the prosecution rested its case earlier in the day, according to WJTV 12 News.
Defense attorneys attempted to have the charges thrown out after the prosecution rested, arguing that prosecutors had not established proper evidence to charge DiBiase. The judge disagreed, and the trial continued. The defense called Kevin McClendon to the stand as its first witness. McClendon worked with DiBiase on developing a Get Fit Mississippi app, which was never released.
DiBiase faces 13 counts including 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. 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.
The Case Against DiBiase
DiBiase, the son of WWE Hall of Famer Ted DiBiase Sr., is accused of conspiring to fraudulently obtain approximately $3.5 million in federal funds intended for needy families through Mississippi’s Temporary Assistance for Needy Families (TANF) program and the Emergency Food Assistance Program (TEFAP).
Prosecutors allege that former Mississippi Department of Human Services director John Davis directed welfare funds to two nonprofits, the Family Resource Center of North Mississippi, operated by Christi Webb, and the Mississippi Community Education Center, operated by Nancy New. Those nonprofits then awarded contracts to DiBiase. Webb and New have both pleaded guilty to state and federal charges in connection with the scandal. DiBiase’s brother, Brett DiBiase, has also pleaded guilty.
During the trial, prosecutors presented a chart showing that between December 2013 and June 2017, approximately $424,000 was deposited into DiBiase’s account. Between June 2017 and August 2019, after the contracts began, nearly $3.9 million was deposited, with $2.9 million traced to the two nonprofits.
Prosecutors say DiBiase used the funds to purchase a $1.4 million home in Madison County, a $55,000 pontoon boat, a $34,000 Kubota tractor, and a $40,000 truck, among other purchases. Multiple witnesses testified that DiBiase never submitted expense or activity reports showing how the money was spent.
Davis testified that he knew DiBiase was not able to perform the duties outlined in the contracts but continued directing funds to him. Davis told the court that DiBiase knew the money was intended for welfare needs.
The Defense
Defense attorneys maintain that DiBiase did not steal any money and earned every dollar he received. They argue he performed legitimate services under each contract and that the agreements never required him to submit reports on how the money was spent or specified how it could be used.
During the trial, the defense cross-examined prosecution witnesses on whether anyone had directly told DiBiase that his work did not satisfy the terms of his contracts. Webb testified that she never communicated that to DiBiase.
The trial has been a turbulent process. It was paused for more than a month in January after lead defense attorney Scott Gilbert fell ill. The defense pushed for a mistrial, but Judge Carlton Reeves denied the request and ruled the trial could continue with DiBiase’s other attorneys. Eric Herschmann, a former senior adviser to President Donald Trump, briefly took over DiBiase’s defense before Gilbert returned.
Mississippi’s Largest Embezzlement Scandal
The case is part of what prosecutors have described as Mississippi’s largest public embezzlement scandal. The scheme involved the misappropriation of millions of federal safety net dollars intended for needy families and low-income individuals. Davis pleaded guilty in 2022 to five counts of conspiracy and 13 counts of fraud against the government and was sentenced to 32 years in state prison. He also pleaded guilty to federal charges and agreed to testify in the prosecution of other defendants as part of his plea deal. Davis, who is undergoing chemotherapy treatment for cancer, served as the prosecution’s star witness.
DiBiase wrestled for WWE from the late 2000s through the mid-2010s and is the son of “The Million Dollar Man” Ted DiBiase Sr., who was inducted into the WWE Hall of Fame in 2010.
The trial is taking place in federal court in Jackson, Mississippi, before Judge Carlton Reeves.
