An ex-WWE star purchased a million-dollar mansion, among other luxury buys, as he stole millions of dollars in federal welfare funds earmarked for social services in Mississippi’s largest-ever public corruption scheme, prosecutors alleged.
Ted DiBiase Jr., whose father is WWE legend ‘Million Dollar Man’ Ted DiBiase Sr., is facing decades behind bars as prosecutors rested their case on Wednesday.
DiBiase used the misused funds to purchase a $1.4 million home, a $55,000 pontoon boat, a $34,000 Kubota tractor and a $40,000 truck, AL.com reported.
Lawyers for DiBiase, who performed for the WWE from 2008-2013, argued the prosecutors had not shown enough evidence to convict him. The federal judge overseeing the trial denied the request to dismiss the charges.
DiBiase, 43, is at the center of the alleged fraud where he was awarded upwards of $3 million from co-conspirator John Davis, the former director of the Mississippi Department of Human Services, according to AL.com.
Davis, who had pleaded guilty to both state and federal charges in the scandal, dispersed money from the Emergency Food Assistance Program (TEFAP) and the Temporary Assistance for Needy Families (TANF) program.
The funds were then shared among two other co-conspirators, Christi Webb and Nancy New, who awarded “sham contracts” to different businesses, including five of the bogus contracts to DiBiase’s shell corporations, Priceless Ventures LLC and Familiae Orientem LLC.
DiBiase received $3 million between 2017 and 2018.
Webb and New have both pleaded guilty to their charges, pointing fingers, claiming Davis had urged them to funnel the money to DiBiase.
Federal prosecutors accused DiBiase of “misappropriating millions of dollars in federal safety-net funds intended for needy families and low-income individuals in Mississippi.”
DiBiase claimed the money was being used to develop an app for the state Department of Health and Human Services to combat poverty, WLBT reported.
Kevin McLendon, the owner of a creative services company, worked on the app with DiBiase, testifying that the state paid for the operation that spanned several months.
The app was never finished, leading prosecutors to rule DiBaise violated his contract’s terms in not providing a complete service.
Davis claimed he knew DiBiase was not capable of meeting the terms in his contract but still directed the money to him using funds both men knew were for welfare needs, according to the outlet.
The massive fraud scheme has swept up an estimated $77 million allegedly distributed to celebrities and athletes alike, including NFL Hall of Famer Brett Favre, ex-University of Oklahoma star Marcus Dupree, along with Dibaise’s father and brother, Brett.
The State of Mississippi has sued 38 people to recover $24 million in misappropriated funds.
Brett DiBiase, 38, another former wrestler, had pleaded guilty to one count of conspiracy to defraud the US back in 2023. He faces up to five years in prison.
Davis was sentenced to 32 years in prison for his state crimes. He has not been sentenced for his federal convictions.
The former wrestler, who is facing 13 charges including wire fraud, theft of receiving federal funds and money laundering, will not be called to testify in court.
DiBiase is the only defendant caught up in the scandal to fight his charges.
He faces up to 120 years in prison if found guilty of his charges.
