JACKSON, Miss.—The courtroom was nearly empty Friday morning when former pro-wrestler Teddy DiBiase Jr., stood at a podium and answered questions from a federal judge about his satisfaction with the attorneys defending him.
DiBiase, who prosecutors allege received “sham contracts” and millions in welfare funds that should have gone to Mississippi’s poorest, could have his trial delayed over potential legal conflicts of interest. He has denied the charges.
“Are you satisfied with your lawyer’s representation so far?” U.S. District Court for the Southern District of Mississippi Judge Carlton Reeves asked DiBiase.
“Yes, sir,” DiBiase, replied.
“Do you wish that they continue to represent you in this matter?” the judge continued.
“Very much, sir. Yes,” DiBiase affirmed.
Attorneys for the prosecution and defense had just finished arguing back-and-forth over whether DiBiase’s current legal representation should remain on the case.
Prosecutors say that a connection between the law firm representing DiBiase, Watkins and Eager, and Jess New, a potential witness for the prosecution whose mother and brother are also criminal defendants, could amount to a conflict of interest. That could delay DiBiase’s trial, which was originally slated for January 2025.
Prosecuting attorneys said on Friday that the defense attorneys currently representing DiBiase, work for the same firm that once provided legal counsel for the Mississippi Community Education Center, a nonprofit organization formerly affiliated with Nancy New that is tied up in the welfare case.
Nancy New, along with her other son, Zach New, pleaded guilty to federal charges related to the welfare embezzlement scheme involving millions of Temporary Assistance For Needy Families funds in 2022. The News and MCEC are also civil defendants in a state case aimed at recouping $77 million in TANF funds.
Investigators have not accused Jess New of any crimes, however.
“They can’t effectively advocate for Mr. DiBiase,” Justice Department Trial Attorney Della Sentilles said Friday.
In addition to Nancy and Zach New, former Mississippi Department of Human Services director John Davis—who oversaw the agency as a massive welfare fraud scandal unfolded—pleaded guilty to state and federal charges related to the case in September 2022.
Sentilles pleaded with the judge to approve their proposal for a motion to recuse the defense attorneys, arguing that DiBiase cannot “provide informed consent” and that he would not know the potential “risks or rewards” of maintaining the legal representation he currently has.
The potential conflict of interest could also lead to a mistrial for DiBiase Jr., Sentilles warned.
H. Rusty Comley, one of the Watkins and Eager attorneys representing DiBiase, denied that a conflict of interests existed and accused federal prosecutors of attempting to “manufacture a conflict.”
He argued that the DOJ had not provided justification for removing him from the case. “The government has the burden to come forward with some specificity,” Comely told the judge.
“They haven’t met their burden,” Comley continued.
Reeves questioned whether approving the prosecution’s request to recuse DiBiase’s current legal representation from the case would impede on their client’s 6th Amendment right to choose his own legal counsel.
The judge refrained from making a decision in the matter during court proceedings on Friday but tentatively rescheduled DiBiase Jr.’s trial date for Aug. 26, 2025.
If the court does approve the prosecution’s request, he said, DiBiase, would have to retain new legal representation, which Reeves said he expects would push the trial date back further.