Former WWE wrestler Ted DiBiase Jr. stands trial facing 45 years in federal prison as prosecutors present damning evidence in Mississippi’s largest public embezzlement case.
However, the defense has countered with 47 hours of video footage showing DiBiase conducting actual training sessions, directly challenging government claims he never provided contracted services. The dramatic evidence battle has captivated the Jackson federal courthouse.
Thirteen Federal Charges Filed
DiBiase, 43, faces 13 federal charges including 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.
The charges stem from allegedly fraudulent contracts totaling approximately $2.9 million to $3.5 million obtained through federal welfare programs. Trial proceedings began January 6, 2026, at the Thad Cochran United States Courthouse.
Lavish Lifestyle Funded by Welfare Money
Prosecutors allege DiBiase used stolen Temporary Assistance for Needy Families funds to purchase luxury items including a boat, vehicle, and make a down payment on a $1.5 million house in Madison County’s exclusive Reunion subdivision.
Federal investigators claim he also funded a $700,000 investment account and paid for personal vacations using money intended for Mississippi’s poorest families. The alleged spending spree occurred between 2018 and 2019.
Defense Portrays Different Narrative
Defense attorney Scott Gilbert vigorously contests the charges, telling jurors DiBiase fulfilled his contractual obligations and never submitted false documents. “This case may look unpleasant, but what happened here is not a crime,” Gilbert argued during opening statements.
He characterized his client as a victim of manipulation rather than a perpetrator, turning the focus toward convicted welfare director John Davis.
John Davis: The Mastermind Testifies
Former Mississippi Department of Human Services executive director John Davis took the witness stand January 9, providing explosive testimony about the scandal’s inner workings.
Currently serving a 32-year state prison sentence after pleading guilty to conspiracy charges in 2022, Davis admitted directing millions in welfare funds to the DiBiase family. His testimony revealed disturbing text messages promising the family “stability for the rest of your life.”
Prosecution’s Damning Portrait
Assistant U.S. Attorney painted Davis as “a lonely, middle-aged man with no friends, who became enamored with the quasi-celebrity DiBiase brothers” during opening statements.
Prosecutors argue DiBiase exploited this vulnerability to secure fraudulent contracts through two nonprofit organizations that served as conduits for misappropriated funds. They claim DiBiase’s companies, Priceless Ventures LLC and Familiae Orientem LLC, never intended to provide promised social services.
Sham Contracts for Inner-City Youth
DiBiase’s companies received at least five contracts supposedly to provide social services addressing inner-city youth issues and identifying food pantries in North Mississippi. Federal prosecutors contend these services were never delivered despite millions paid from welfare coffers meant for struggling families.
The alleged scheme operated through Family Resource Center of North Mississippi and Mississippi Community Education Center, two nonprofits whose directors have since pleaded guilty.
America’s Largest State Embezzlement Scandal
Mississippi State Auditor termed the case “the largest public embezzlement case in state history,” with more than $77 million—possibly approaching $100 million—in welfare funds misspent during Davis’s 2016-2019 tenure.
The scandal has exposed catastrophic oversight failures in federal welfare program administration at both state and national levels. Under Davis’s leadership, MDHS rejected over 90 percent of TANF applicants while diverting funds to connected individuals.
Only Defendant Choosing Trial
DiBiase stands alone as the only person charged in the sprawling scandal who rejected a plea deal, choosing instead to face a jury. His decision contrasts sharply with all co-conspirators who pleaded guilty, including his brother Brett DiBiase, who faces up to five years pending sentencing.
The choice demonstrates either confidence in his defense or unwillingness to admit wrongdoing despite overwhelming evidence against associates.
Co-Conspirators Accept Responsibility
Nonprofit directors Christi Webb, Nancy New, and Zach New all pleaded guilty to various charges and await sentencing. Brett DiBiase pleaded guilty to making false statements in 2020 and conspiracy to defraud the U.S. in 2023.
Their cooperation with federal authorities has provided prosecutors with detailed evidence and testimony against Ted Jr., strengthening the government’s case significantly while potentially reducing their own sentences.
Brett DiBiase’s Drug-Fueled Downfall
Court testimony revealed John Davis accompanied Brett DiBiase to acquire drugs and directed nonprofit director Nancy New to pay for Brett’s luxury California rehabilitation using TANF funds. The shocking revelations exposed the depths of Davis’s manipulation and the DiBiase family’s dependency on stolen welfare money.
Text messages between Davis and Brett demonstrated a troubling relationship where public funds financed personal crises and addictions rather than helping needy Mississippi families.
Video Evidence Creates Reasonable Doubt
The defense’s 47-hour video archive showing DiBiase conducting training sessions represents a formidable challenge to prosecution claims he never intended to provide services.
This government-produced evidence previously succeeded in delaying the trial and now forms the cornerstone of the defense strategy. The footage directly contradicts the central allegation that contracts were entirely fraudulent, potentially creating reasonable doubt among jurors about DiBiase’s intent.
Brett Favre’s Controversial Connection
NFL Hall of Fame quarterback Brett Favre, though not criminally charged, received welfare funds for projects at his alma mater and a concussion drug company investment. His involvement in the scandal sparked national outrage and civil lawsuits seeking to recover misappropriated funds.
Favre’s celebrity status brought unprecedented attention to Mississippi’s welfare crisis, highlighting how powerful connections enabled systematic looting of programs meant for the state’s most vulnerable citizens.
Million Dollar Man’s Ministry Implicated
Ted DiBiase Sr., known as “The Million Dollar Man” during his WWE career, received over $700,000 for his Christian ministry, Heart of David Ministries, through Davis-directed contracts.
The elder DiBiase has filed a defamation lawsuit against Mississippi State Auditor Shad White, claiming false statements in White’s 2024 book about the scandal. The November 2025 lawsuit adds another legal dimension to the sprawling case affecting multiple generations of the wrestling family.
Three-Week Trial Expected
Federal prosecutors and defense attorneys anticipate approximately three weeks to present their cases before the jury reaches a verdict. DiBiase has remained free on bond for nearly three years since his April 2023 indictment, maintaining his innocence throughout.
He has refused to speak with reporters outside the courthouse, remaining silent when questioned about proceedings or allegations against him.
National Oversight Failures Exposed
The scandal has spotlighted systemic failures in federal welfare program oversight extending far beyond Mississippi’s borders. Questions about accountability at both state and federal levels have emerged as investigators documented how easily millions were diverted from intended recipients.
The case has prompted calls for comprehensive reforms to prevent similar exploitation of vulnerable populations’ safety net programs in other states.
Prosecutors Seek Maximum Penalties
If convicted on all counts, DiBiase faces five years for conspiracy, up to 20 years for each wire fraud count, and 10 years for each theft and money laundering count. The cumulative maximum sentence of 45 years would effectively constitute a life sentence for the 43-year-old former wrestler.
Federal sentencing guidelines typically result in shorter actual sentences, but prosecutors are pursuing aggressive penalties to deter future welfare fraud.
TANF Program Systematically Exploited
The Temporary Assistance for Needy Families program and Emergency Food Assistance Program were systematically exploited through a network of complicit officials and nonprofit directors.
Mississippi’s neediest families were denied assistance at extraordinary rates while connected individuals enriched themselves with impunity. The practice of rejecting over 90 percent of TANF applicants continued as recently as 2024, demonstrating lasting institutional damage from the scandal.
Civil Litigation Continues
Beyond criminal prosecutions, extensive civil litigation seeks to recover tens of millions in misspent welfare funds from various recipients and organizations.
State Auditor Shad White has pursued aggressive legal action against all parties involved, regardless of celebrity status or political connections. The civil cases may continue for years even after criminal trials conclude, as Mississippi attempts to recover money stolen from its most vulnerable residents.
Verdict Will Set Precedent
The jury’s verdict in DiBiase’s trial will establish important legal precedents for prosecuting welfare fraud involving intermediary nonprofit organizations and questions of contractual intent. Legal experts are closely monitoring whether the video evidence of some service provision will be sufficient to defeat fraud charges despite alleged self-dealing and misrepresentation.
The outcome will influence how federal prosecutors approach similar cases nationwide where services were partially rather than completely unfulfilled.
Mississippi’s Reckoning Continues
As testimony continues in the Jackson federal courthouse, Mississippi confronts its shameful legacy of allowing powerful individuals to plunder programs meant to lift families from poverty.
The trial represents both accountability and a cautionary tale about the necessity of robust oversight in administering federal assistance programs. For Ted DiBiase Jr., the coming weeks will determine whether he joins his co-conspirators in prison or walks free to rebuild his life.
Sources:
“Former WWE star Ted DiBiase Jr. faces trial for role in $77M Mississippi welfare scam.” CBS Austin, January 2026.
“Ex-WWE wrestler faces feds in first – and potentially only trial.” Mississippi Today, January 2026.
“Welfare Scandal Mastermind Sought to Woo DiBiase.” Mississippi Free Press, January 2026.
“Former Professional Wrestler Charged with Theft of Millions of Dollars in Federal Funds Intended for Needy.” U.S. Department of Justice, February 2025.
“Mississippi Welfare-Fraud Trial Spotlights National Oversight Failures.” The Wall Street Journal, January 2026.
“Trial of Ted DiBiase, Jr. gets underway in Mississippi.” Magnolia Tribune, January 2026.