Former WWE Wrestler Cleared of All Charges in Multi-Million Dollar Welfare Fund Misuse Case
A federal jury has delivered a complete acquittal for former WWE star Ted "Teddy" DiBiase Jr., who faced 13 serious charges in connection with Mississippi's largest-ever public corruption scandal involving welfare funds. The verdict, reached on Friday, found DiBiase not guilty on all counts including conspiracy, wire fraud, theft of government funds, and money laundering.
Prosecution's Case and Jury's Decision
Federal prosecutors had built a substantial case alleging that DiBiase fraudulently obtained millions of dollars from federal welfare programs, diverting the money for personal expenditures including vehicle purchases, a boat acquisition, and a down payment on residential property. The funds originated from critical safety-net programs designed to assist vulnerable populations, specifically Temporary Assistance for Needy Families (TANF) and the Emergency Food Assistance Program.
U.S. Attorney Baxter Kruger responded to the verdict with measured professionalism, stating: "While I remain confident in our case, I respect the jury's verdict. I commend the prosecution team for their diligent efforts throughout this complex investigation and trial." Representatives for DiBiase's legal defense team were not immediately available for comment following the courtroom decision.
Background of the Mississippi Welfare Scandal
The controversy first emerged in 2020 when John Davis, former director of the Mississippi Department of Human Services, was indicted alongside several other individuals including DiBiase's brother, former professional wrestler Brett DiBiase. According to court documents, Davis allegedly funneled federal welfare funds through two nonprofit organizations that subsequently issued what prosecutors described as "sham contracts" to various entities.
DiBiase's companies reportedly received over $2 million through these arrangements for purported social services that were never actually delivered. These included leadership outreach programs, emergency food assistance assessments, and initiatives targeting inner-city youth. The Mississippi state auditor's investigation revealed that more than $77 million in TANF funds had been misspent through the broader scheme.
Broader Implications and Civil Proceedings
Notably, Ted DiBiase Jr. was the only individual charged in this sprawling scandal to proceed to a jury trial. Multiple other figures have already pleaded guilty to related charges, including John Davis, several nonprofit executives, and DiBiase's brother Brett DiBiase. The scandal has also implicated high-profile personalities such as former Mississippi Governor Phil Bryant and retired NFL quarterback Brett Favre, both of whom deny any wrongdoing and have not faced criminal charges.
The civil dimension of this case continues to unfold, with the Mississippi Department of Human Services pursuing a lawsuit seeking to recover over $20 million in allegedly misspent funds. This civil action names dozens of defendants including Favre, both DiBiase brothers, and their father Ted DiBiase Sr., the legendary WWE personality known as the "Million Dollar Man."
DiBiase, who performed as a professional wrestler for WWE throughout the 2000s and 2010s, now walks away from the criminal proceedings without conviction, though the shadow of the civil litigation and the broader welfare fund misuse scandal continues to loom over Mississippi's political and social service landscape.
