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Defense attorneys for former WWE star Ted DiBiase Jr. began presenting their case today after federal prosecutors rested in the Mississippi criminal trial centered on DiBiase's alleged misuse of welfare funds. He faces charges of fraud, theft, and conspiracy, with prosecutors alleging he improperly obtained nearly $2 million in federal welfare money intended to assist low-income families.
DiBiase has pleaded not guilty and maintains that he fulfilled the services outlined in his contracts. Earlier today, WAPT TV reported that the defense’s first witness, Kevin McLendon, a former advertising executive and current software developer, testified that DiBiase Jr. was pursuing a legitimate public-health initiative known as “Get Fit Mississippi.”
According to McLendon, the project was designed as a mobile app aimed at reducing poverty, promoting healthy eating, and addressing the state’s high obesity rate. Jurors were shown images from the proposed app, which featured Mississippi celebrities and was intended to engage younger audiences. McLendon said the plan included distributing the app through high schools and installing it on government-issued smartphones. He also testified that DiBiase Jr. spent four to six months meeting with officials from the Mississippi Department of Human Services (MDHS) to develop the concept.
McLendon estimated the app would cost between $1.5 million and $2 million to build, with funding expected to come from MDHS. He said the goal was to create a platform that could connect residents to state services and resources.
Prosecutors, however, have arguef that the project was never completed and that the intended funds were instead misused. Their final witness, Matthew Aukerman, n FBI forensic accountant, atestified that in his expert opinion, DiBiase Jr. used shell companies to conceal fraudulent activity. Aukerman detailed financial transactions showing that between June 2017 and June 2019, approximately $2.9 million in payments from the Mississippi Community Education Center and the Family Resource Center were deposited into bank accounts linked to DiBiase Jr. Prosecutors contend that a significant portion of those funds came from federal welfare programs. Under cross-examination, Aukerman acknowledged that not all of funds transferred were federal welfare dollars. He testified that at least $134,000 deposited into DiBiase Jr.’s accounts originated from non-federal sources.
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. The charges are part of Mississippi’s largest welfare fraud scandal, which involved more than $77 million in federal funds meant for the state’s poorest residents. Prosecutors allege the money was improperly distributed to former athletes, wrestlers, and nonprofits. DiBiase faces a potential sentence of up to 20 years per wire fraud count, 10 years per theft and money laundering count, and five years for conspiracy - if he is found guilty.
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