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The criminal trial for former WWE star Ted DiBiase Jr. is continuing this week in Jackson, MS.
As we have covered in recent years, the third-generation star is accused of conspiring to fraudulently obtain $3.5 million in federal funds intended for families in need. Federal prosecutors allege that the third-generation star received money tied to welfare programs through sham contracts for services that were never provided.
WBLT Channel 3 reported that yesterday, John Davis, the former executive director of the Mississippi Department of Human Services, testified all day yesterday for the prosecution, including stating that DiBiase knew he was taking money meant for needy families. Prosecutors have claimed that Davis directed millions of dollars to DiBiase and his brother, Brett, showing text messages between Davis and the brothers. It should be noted that Davis previously plead guilty to federal and state charges in the case, including admitting steering contracts to DiBiase.
The text messages showed that Davis told the brothers that Mississippi would send them nationwide to teach leadership courses, adding that all states used TANF funds to create training programs - but that DiBiase, despite being paid, never rendered those services.
DiBiase's attorneys have claimed DiBiase is innocent, that Davis was the mastermind of the fraud and that there are actually hours of video proving that the services were rendered. They are expected to be introduced when the case moves to the defense.
DiBiase allegedly used the federal funds to buy a vehicle and a boat, and for the down payment on the purchase of a house. The house was later surrendered to federal authorities.
DiBiase Jr. was arrested in April 2023 on one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds, six counts of wire fraud, two counts of theft concerning programs receiving federal funds, and four counts of money laundering.
If convicted, the third generation pro wrestling star faces a maximum penalty of five years in prison for the conspiracy count, a maximum penalty of 20 years in prison for each wire fraud count, and a maximum penalty of 10 years in prison for each count of theft concerning programs receiving federal funds and for each count of money laundering.
DiBiase is facing a maximum of five year's imprisonment on the one count of conspiracy and up to a $250,00 fine, a maximum of 20 years imprisonment and up to a $250,000 fine on the wire fraud counts, up to five years' imprisonment and up to a $250,000 fine regarding the charges of theft involving programs receiving federal funds, a maximum of ten years' imprisonment and up to a $250,000 fine for charges of Monetary Transactions in Excess of $10,000 with the Proceeds of Specified Unlawful Activity. So, that's a potential of 45 years imprisonment and a million dollar fine.
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