DiBiase found not guilty on all 13 counts for his alleged role in Mississippi’s largest-ever public welfare scandal

• The jury deliberated for nearly four hours before handing down the verdict.

Former pro wrestler Ted DiBiase, Jr. has been found not guilty on all 13 counts for his 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.

The jury deliberated for nearly four hours before handing down the verdict.

DiBiase was 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.

State Auditor Shad White, who announced the investigation into the scandal in 2019 and coordinated with the state and federal prosecutors, expressed his disappointment soon after the verdict came back on Friday.

“While I’m disappointed in the result of the trial, nothing changes the fact that seven people have already pleaded guilty to state or federal charges because of the welfare scandal,” White said. “My hope now is that the state’s lawyers will be able to recover as much of the misspent money as possible in civil court so hard-working taxpayers can see some accountability for what happened here.”

The civil trial filed by the Mississippi Department of Human Services against persons and entities that allegedly misspent the welfare funds is ongoing in state court.

DiBiase had previously pleaded not guilty and had been free on bond for nearly three years ahead of the federal trial. Had he been convicted of the charges, he was facing over 100 years in prison.

The U.S. Department of Justice unsealed a federal indictment in April 2023 charging the WWE star for his role in allegedly misappropriating millions of dollars in federal safety-net funds intended for needy families and low-income individuals in Mississippi.

According to court documents, and as previously reported, DiBiase, along with alleged co-conspirators John Davis, Christi Webb, Nancy New, and others, were said to have fraudulently obtained federal funds – including from The Emergency Food Assistance Program (TEFAP) and the TANF program – that they misappropriated for their own personal use and benefit.

The Justice Department alleged that Davis, then-executive director for the Mississippi Department of Human Services (MDHS), directed the state agency to subgrant the funds to two non-profit organizations, Family Resource Center of North Mississippi Inc. (FRC) and Mississippi Community Education Center (MCEC), which were operated by Webb and New, respectively. Davis then allegedly directed Webb and New to award sham contracts to various individuals and entities purportedly for the delivery of social services, including at least five contracts that were awarded to DiBiase’s companies, Priceless Ventures LLC and Familiae Orientem LLC.

The Justice Department further alleged that FRC and MCEC provided millions of dollars in federal funds from MDHS to DiBiase and his companies for social services that DiBiase did not provide and did not intend to provide. Prosecutors said DiBiase allegedly used those federal funds to buy a vehicle and a boat, and for the down payment on the purchase of a house, among other expenditures.

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.