Ted “Teddy” DiBiase Jr. began to cry as soon as the federal court clerk read aloud the first of 13 not guilty verdicts. By count seven, tears fell into his lap.

When the clerk finished reading the verdict – not guilty on all counts in a notorious welfare scandal that made national headlines – DiBiase’s mom crumpled in her seat on the second row of the courtroom, holding her face in her hands and sobbing. 

Defense attorney Scott Gilbert darted out of the courtroom and his co-counsel, Sidney Lampton, swiveled around in her chair, beaming. DiBiase tightly hugged his wife, Kristen, who’d kept a cheery attitude throughout 20 days of trial.

“That was seven years of emotion coming out of me,” DiBiase’s mom, Melanie DiBiase, said as they exited the courthouse Friday.

Jurors found DiBiase, a former pro wrestler-turned-entrepreneur, not guilty of all counts of conspiracy, wire fraud, theft and money laundering after he accepted nearly $3 million in federal funds designed to help poor residents and spent the money on luxury items. 

The government needed to prove DiBiase acted knowingly or with intent. His defense: DiBiase never solicited the funds, he was offered them in exchange for the cachet he brought to the welfare agency, and he delivered as promised.

What’s next for the ex-wrestler?

“I’m gonna continue to serve people, because that really is who I am,” DiBiase said outside the courthouse after the verdict. “And I do care about every Mississippian. And to all the doubters or haters or people that have maybe had false information and not all the information, I forgive you, and I love you too.”

DiBiase was just one of dozens of people who received these funds supposedly to carry out the mission of an anti-poverty initiative called Families First for Mississippi under a now disgraced former agency director. By some estimates, state and nonprofit officials frittered away $100 million between 2016 and 2019 while serving few needy residents. 

But the former WWE star was one of just eight people criminally charged over the misspending. The other seven pleaded guilty. The state made its first arrests in 2020 following an investigation by State Auditor Shad White, and DiBiase was indicted by federal prosecutors in 2023.

The verdict in DiBiase’s case answers a longstanding question about whether his conduct – which is similar to that of many other characters in the larger scheme – constituted a crime. 

For years, many tied to the welfare purchases argued that the theory of auditors, investigators and prosecutors was all wrong. DiBiase’s defense described him as a well-meaning, albeit high-paid, changemaker who had no inkling he was involved in wrongdoing.

The jury deliberated for about four hours Friday. The makeup, by appearances, was seven white men, two Black men and three white women.  

“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 in a statement Friday. “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.”

Outside the courthouse after the verdict, DiBiase hugged his younger brother, Brett DiBiase, who pleaded guilty to state charges in 2020 and federal charges in 2023.

Six people still await federal sentencing after pleading guilty years ago to roles in the scheme and agreeing to aid the U.S. Attorney’s Office in its ongoing case. In addition to DiBiase’s brother, these include former Mississippi Department of Human Services Director John Davis, nonprofit directors Nancy New and Christi Webb, New’s son Zach New and a Florida-based neuroscientist Jake Vanlandingham. A seventh defendant, Anne McGrew, awaits sentencing in state court.

A parallel civil suit, which names DiBiase and dozens of other people or entities in an attempt to recoup the funds, is ongoing.

Update, 3/20/2025: This story has been updated with additional details.

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TRIAL PREVIEW: Ex-WWE wrestler faces feds in first – and potentially only – criminal trial in Mississippi welfare scandal