Vince McMahon, the longtime former World Wrestling Entertainment (WWE) Chairman, has agreed to settle with the Securities and Exchange Commission (SEC) for more than $1.7 million over allegations of failing to disclose payment agreements related to sexual assault charges. The SEC accused McMahon of bypassing WWE’s internal accounting controls, leading to significant inaccuracies in the company’s financial statements for 2018 and 2021.
As part of the settlement, McMahon neither admits nor denies the SEC’s findings but will pay a $400,000 civil penalty. Additionally, he will reimburse WWE approximately $1,331,000.
Thomas P. Smith Jr., Associate Regional Director in the New York Regional Office, emphasized, “Company executives cannot withhold material agreement details from their company’s control functions and auditors.”
The SEC claims that Vince McMahon failed to disclose a $3 million payment to a former WWE employee and a $7.5 million payment to a female independent contractor, both made in exchange for their agreement not to file claims against him. These undisclosed payments led WWE to overstate its net income by about 8% in 2018 and approximately 1.7% in 2021, according to the agency.
In 2022, The Wall Street Journal reported that McMahon had paid a total of $12 million over 16 years to silence allegations of sexual misconduct and infidelity.
(H/T: NBC News)
