Prosecutors Present New Testimony In Ted DiBiase Jr. Federal Fraud Trial

Prosecutors presented new evidence in the federal fraud trial against Ted DiBiase Jr. on Monday. As reported, the trial against the WWE alumnus restarted last month. DiBiase Jr. was indicted on charges related to the Mississippi welfare fraud scandal following an April 2023 arrest, with allegations that he fraudulently obtaining federal funds from programs including The Emergency Food Assistance Program (TEFAP) and Temporary Assistance for Needy Families (TANF), and misappropriated the money for personal use. The case is described as the largest embezzlement scandal in Mississippi history. He is charged with money laundering, theft, wire fraud and conspiracy among the 12 charges.

WLBT in Mississippi reports that prosecutors presented forensic accounting testimony on Monday which showed how DiBiase Jr. received over $2.9 million from two nonprofits over a two-year period. FBI forensic accountant Matthew Auckerman testified that he reviewed over a dozen bank accounts and one credit card account associated with DiBiase Jr. The prosecution says that DiBiase Jr. received the funds between June 2017 and June 2019 from the Mississippi Community Education Center and the Family Resource Center of North Mississippi, including over $1 million in a single day from them.

Prosecutors say that he used the funds to buy 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 things. Former Family Resource Center of North Mississippi head Christi Webb and Mississippi Community Education Center head Nancy New have both testified that they were told to direct the money to DiBiase Jr. Both have pleaded guilty on their own charges.

Jon Davis, the former head of Department of Human Services, gave the two the instructions and has pleaded guilty. He testified earlier at trial that he knew DiBiase Jr. was not able to perform the duties outlined in the contracts but continued sending funds to him.

DiBiase Jr.’s defense attorneys argue that he did not steal any money and earned it all, performing legitimate services under the contracts which they sat did not specify how the money could be spent nor require him to submit reports.

If convicted, DiBiase Jr. 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.