Jurors to decide if welfare contract scheme was criminal in Mississippi

Jackson, Miss. — A federal jury is weighing whether Ted DiBiase Jr., a former WWE wrestler and businessman, committed a crime by misappropriating nearly $3 million in federal welfare funds. The trial concluded Thursday after 19 days, with jurors expected to begin deliberations Friday.

Prosecutors argued DiBiase used the funds to fund a lavish lifestyle, purchasing a boat, truck, house, and vacations, instead of fulfilling the contractual tasks outlined in agreements with nonprofits. They claimed his conduct was part of a scheme to divert government money for personal gain. The defense countered that the chaos within the welfare system and the independent nature of DiBiase’s work explained the spending, not criminal intent.

DiBiase, 32, began receiving federal funds in 2017 through Mississippi’s Families First initiative, which aimed to address poverty through partnerships with nonprofits. Prosecutors said contracts signed by DiBiase contained vague objectives and were riddled with inconsistencies, suggesting they were sham agreements. The case is unique because it is the only one where the federal government has tried to prove that misappropriation surrounding the scheme is criminal behavior.

The scandal involves multiple figures, including former Mississippi Department of Human Services Director John Davis, who has pleaded guilty. Davis facilitated contracts between the nonprofits and DiBiase’s LLCs, which prosecutors say were used to hide the misappropriation of funds. Several other individuals and companies face civil and criminal charges related to the scheme.

Throughout the trial, DiBiase’s supporters, including family friends and his mother, Melanie DiBiase, expressed confidence in his innocence. They emphasized that the case highlighted systemic issues and questioned whether DiBiase’s actions constituted a criminal conspiracy or simply poor judgment amid a chaotic welfare program.

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