The federal criminal trial of former WWE Superstar Ted DiBiase Jr. is now officially underway in Jackson, Mississippi, marking a major development in what prosecutors have described as the largest public embezzlement case in the state’s history.
Opening statements began this week and immediately laid out starkly different narratives about the 42-year-old former wrestler. Federal prosecutors portrayed DiBiase Jr. as a “greedy con man” who exploited welfare programs to fund an extravagant lifestyle, while his defense team countered that he is an innocent businessman who was manipulated by corrupt state officials and committed no crimes.
DiBiase Jr. is facing a sweeping list of charges, including one count of conspiracy to commit wire fraud, six counts of wire fraud, two counts of theft concerning programs receiving federal funds, and four counts of money laundering. If convicted on all counts, he could face decades in federal prison.
At the center of the government’s case is the allegation that DiBiase Jr. improperly received roughly $3 million in federal funds earmarked for the Temporary Assistance for Needy Families program and The Emergency Food Assistance Program. Prosecutors allege that the money was distributed through what they describe as “sham contracts” for leadership and character training services that were never meaningfully delivered.
One of those contracts involved DiBiase’s “Law of 16” leadership curriculum, which prosecutors claim was largely plagiarized from existing materials. Rather than serving Mississippi’s most vulnerable residents, the government argues that the funds were instead used to finance personal purchases, including a boat, a vehicle, a $1.5 million home in the upscale Reunion subdivision of Madison County, a $700,000 personal investment account, and other luxury expenses.
The defense has centered its case on redirecting responsibility to John Davis, the former director of the Mississippi Department of Human Services, who has already pleaded guilty to federal and state charges connected to the scandal. DiBiase’s attorney, Scott Gilbert, depicted Davis as a disgraced official who used his position and became overly enamored with the famous DiBiase wrestling family. According to the defense, DiBiase Jr. believed the contracts were legitimate, intended to fulfill them, and never knowingly submitted fraudulent documentation.
“This case may look unpleasant,” the defense told jurors in opening statements, “but what happened here is not a crime.”
Testimony began Wednesday with David Barton, a former internal auditor at MDHS. Barton testified that when he joined the agency in 2019, he quickly identified major deficiencies in how funds were tracked and monitored. He told the court that DiBiase Jr. maintained an office on the executive floor of the MDHS building and frequently accompanied Director John Davis to meetings, despite not being an official employee of the agency.
Barton said he initially assumed DiBiase was being compensated for his involvement, but his inability to locate any direct payment records from MDHS raised red flags that ultimately contributed to uncovering the broader scheme.
The trial has cast a long shadow over the DiBiase wrestling legacy. DiBiase Jr.’s brother, Brett DiBiase, has already pleaded guilty to both state and federal charges related to the same welfare fraud investigation. Their father, WWE Hall of Famer Ted DiBiase, has also been named in civil litigation tied to welfare funds flowing to his ministry, though he is not a defendant in this criminal case.
Prosecutors are expected to continue presenting witnesses into next week as they work to unravel the complex network of nonprofits, contracts, and state officials allegedly involved in the misuse of federal aid money.
