Ted dibiase arriving at the "be A STAR" Summer Event at Andaz Hotel on August 11, 2011 in Los Angeles, CA (Photo from Shutterstock)
- The charges against the former pro wrestler stem from his alleged role in the state’s largest-ever public welfare embezzlement scheme using TANF dollars.
For the second time since the start of the federal trial of former pro wrestler Ted DiBiase, Jr., the proceedings have been postponed. DiBiase’s attorney was hospitalized after falling ill, prompting the delay.
His legal team also requested a mistrial, with the prosecution from the U.S. Justice Department strongly objecting.
DiBiase is charged with 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 stem from DiBiase’s alleged role in the state’s largest-ever public welfare embezzlement scheme using Temporary Assistance for Needy Families, or TANF, funds totaling upwards of $77 million, a portion of which was illegally directed to DiBiase’s charity organizations, prosecutors contend.
He has previously pleaded not guilty and has been free on bond for nearly three years ahead of the federal trial.
On Tuesday, DiBiase’s lead attorney, Scott Gilbert, requested a postponement of no less than three months because of a medical illness. Prosecutors argued that DiBiase has two other attorneys on his legal team, Sidney Lampton and Eric Herschmann.
Lampton and Herschmann told U.S. District Judge Carlton Reeves they were not prepared to take over the defense of DiBiase, who 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.
In addressing the court, Herschmann said DiBiase’s Sixth Amendment rights guaranteed him the right to have the attorney of his choosing.
Government prosecutors argued in favor of continuing the trial, noting that both Lampton and Herschmann could represent DiBiase, having decades of courtroom experience between them. Prosecutors also argued that their main witness, former executive director of the Mississippi Department of Human Services John Davis, is currently undergoing cancer treatment and may not be well enough to testify if a mistrial is granted.
The earlier testimony from Davis was damning to the defense. The former MDHS official took the stand, saying DiBiase was aware the funding was to be used for charity. Prosecutors contend DiBiase used more than $2 million in funds to purchase a vehicle, a boat and a Madison County home.
This is the second time in the trial that it has been postponed due to illness. Judge Reeves said he will consider both arguments before deciding if a mistrial is needed. He did not give a timeline.
Other figures in the scheme have pleaded guilty to state and/or federal charges, including Davis, Nancy and Zach New, Ted’s brother Brett DiBiase, Ann McGrew, Jacob Van Landingham, and Webb.
Davis is serving a 32-year sentence for state charges and is awaiting sentencing for the federal charges. All others continue to await their sentencing.
Daniel Tyson
