In the packed Jackson federal courthouse, former WWE wrestler Ted DiBiase Jr. battles 13 federal charges in Mississippi’s biggest public embezzlement scandal. While prosecutors cite a theoretical statutory maximum of 185 years if all sentences were imposed consecutively at their limits—a calculation based on adding maximum penalties for each count—legal experts and federal sentencing guidelines suggest a more realistic exposure of up to 45 years, which remains a potential life sentence for the 43-year-old defendant.
Prosecutors wield evidence of millions siphoned from welfare programs meant for the state’s poorest families, while his defense counters with 47 hours of video proving he delivered promised services.
Charges and Sentencing Exposure
DiBiase faces one conspiracy to commit wire fraud count, six wire fraud counts, two thefts from federally funded programs, and four money laundering charges. The case, underway since January 6, 2026, at the Thad Cochran United States Courthouse, involves contracts worth $2.9 million to $3.5 million from Temporary Assistance for Needy Families (TANF) funds.
The statutory maximums for each charge total 185 years: five years for conspiracy, 20 years per wire fraud count (120 years total), and 10 years each for theft and laundering charges (60 years combined). However, federal sentencing practice typically results in concurrent rather than consecutive sentences for related offenses, especially in white-collar cases arising from a single criminal scheme. Under federal guidelines established after United States v. Booker, judges retain discretion to impose concurrent sentences—served simultaneously rather than back-to-back—making the 45-year figure cited across reporting the more probable maximum exposure.
Between 2018 and 2019, prosecutors allege DiBiase bought a boat, a vehicle, and made a $1.5 million down payment on a house in Madison County’s Reunion subdivision. Additional spending included a $700,000 investment account and personal vacations, all funded by welfare money earmarked for Mississippi’s neediest residents.
Defense Challenges the Narrative
Defense attorney Scott Gilbert insists DiBiase met all contractual obligations and submitted no false documents. “This case may look unpleasant, but what happened here is not a crime,” Gilbert told jurors in opening statements. He frames DiBiase as manipulated by others, shifting blame to convicted welfare director John Davis.
The defense’s key weapon: 47 hours and 39 minutes of government-produced video footage showing DiBiase leading actual training sessions. This evidence, provided late in discovery, delayed the trial from 2025 to January 2026 and now aims to sow reasonable doubt, contradicting prosecutors’ claims that his firms—Priceless Ventures LLC and Familiae Orientem LLC—never intended to deliver services.
Key Witness: John Davis
Davis, former Mississippi Department of Human Services executive director, testified January 9, 2026. Serving a combined 32-year sentence after his 2022 guilty pleas to conspiracy and theft in federal court, plus state charges, he admitted steering millions in welfare funds to the DiBiase family. Text messages he exchanged promised them “stability for the rest of your life.” Prosecutors described Davis as a “lonely, middle-aged man with no friends” infatuated with the DiBiase brothers’ celebrity status.
The scheme funneled money through nonprofits Family Resource Center of North Mississippi, operated by Christi Webb, and Mississippi Community Education Center, run by Nancy New and Zach New. All three directors pleaded guilty and await sentencing. Webb directed nearly $1.1 million in welfare funds to DiBiase Jr.’s companies and pleaded guilty in March 2023 to theft concerning federal funds, facing up to 10 years. Nancy New pleaded guilty to money laundering with a 10-year maximum, while Zach New admitted conspiracy carrying five years maximum.
Brett DiBiase, Ted’s brother, admitted making false statements in December 2020 and conspiracy to defraud the government in March 2023, facing up to five years in federal prison. Testimony revealed Davis joined Brett for drug purchases and ordered Nancy New to pay $160,000 for his California rehab at a luxury Malibu facility using TANF funds. Text messages exposed a web where public money covered personal addictions over family aid.
Scandal’s Vast Reach
State Auditor Shad White called it the largest embezzlement in Mississippi history: over $77 million, with some estimates approaching $100 million, misused from 2016 to 2019 under Davis’s leadership. During this period, the Mississippi Department of Human Services rejected over 90 percent of TANF applicants while diverting funds to insiders.
DiBiase is the sole defendant opting for trial; all others accepted plea deals. Connections extend to NFL legend Brett Favre, who received uncharged funds for a University of Southern Mississippi volleyball facility and Prevacus, a concussion drug company, sparking ongoing civil suits. Ted DiBiase Sr., the WWE “Million Dollar Man,” received $1.7 million for his Heart of David Ministries and sued Auditor White in January 2026 over claims in White’s 2024 book about the scandal.
The three-week trial highlights sham contracts for inner-city youth services and food pantries that prosecutors say went undelivered despite payments.
Oversight Failures and Future Implications
Civil suits continue to claw back tens of millions, with White targeting all involved parties. The scandal exposed catastrophic lapses in TANF and Emergency Food Assistance Program oversight, prompting reform demands nationwide. Rejection rates for aid remained elevated into 2024, underscoring lasting damage to vulnerable populations.
DiBiase, free on bond since his April 2023 indictment, has remained silent outside court. The verdict could set precedents on nonprofit fraud prosecution and partial service delivery defenses, potentially shaping federal white-collar prosecutions for years. For Mississippi, the trial represents a critical test of accountability in safeguarding public assistance for the state’s most vulnerable residents, with implications for preventing future diversions of welfare funds across the nation.[1][2]
Sources:
“Former WWE star Ted DiBiase Jr. faces trial for role in $77M Mississippi welfare scam.” CBS Austin, January 2026.
“Ex-WWE wrestler faces feds in first – and potentially only trial.” Mississippi Today, January 2026.
“Welfare Scandal Mastermind Sought to Woo DiBiase.” Mississippi Free Press, January 2026.
“Former Professional Wrestler Charged with Theft of Millions of Dollars in Federal Funds Intended for Needy.” U.S. Department of Justice, February 2025.
“Mississippi Welfare-Fraud Trial Spotlights National Oversight Failures.” The Wall Street Journal, January 2026.
“Trial of Ted DiBiase, Jr. gets underway in Mississippi.” Magnolia Tribune, January 2026.