Mississippi News

Defense in DiBiase welfare fraud trial rests; jury to begin deliberations Thursday

Attorneys for Ted “Teddy” DiBiase Jr. rested their defense Wednesday, and jurors are scheduled to begin deliberations Thursday after U.S. District Judge Carlton Reeves gives instructions and both sides deliver closing arguments, court proceedings show.

DiBiase, an ex-WWE wrestler turned influencer, faces federal charges of conspiracy, wire fraud, theft and money laundering. Prosecutors have said DiBiase accepted about $3 million in federal funds from 2017 to 2019 after forming a close friendship with John Davis, then director of the Mississippi Department of Human Services, who steered grants to private nonprofits, according to trial testimony.

The defense kept its case short, calling four witnesses over two days and not putting DiBiase on the stand, court records show. Defense lawyers argued DiBiase did not solicit the grants and performed work under his agreements with the nonprofits, and that any shortfalls resulted from interference by Davis and unresponsiveness from nonprofit directors, according to testimony.

Defense witnesses included business consultant Nicholas Coughlin and client success manager Jesse Pierce, who testified they were recruited through DiBiase’s brother and that nonprofit directors were difficult to reach, limiting their ability to carry out projects despite being paid. The defense also called businessman Kevin McClendon and consultant Matthew Theriot, who helped form one of DiBiase’s LLCs, court filings show. Prosecutors called nearly 20 witnesses over several weeks, including Davis, former DHS employees, nonprofit directors Nancy New and Christi Webb, bank executives, federal officials and an FBI forensic auditor, according to testimony.

The last evidence read to jurors was a text message the prosecution introduced in which DiBiase told Davis he had pretended not to know how to form an LLC or make PowerPoint presentations and that he pitied Coughlin. Judge Reeves allowed the message to be read; defense attorney Scott Gilbert said the tactic violated DiBiase’s rights, the court record shows. The prosecution asked for three hours for closing arguments, a request Gilbert said the defense would not need, according to the docket. The trial began in January and has seen delays, with jurors preserved throughout; only a fraction of the roughly 80 potential witnesses named at the outset have testified, court records show.

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