The Securities and Exchange Commission announced that World Wrestling Entertainment co-founder Vince McMahon has agreed to pay over $1.7 million to settle charges that he failed to disclose payment agreements related to sexual assault charges. McMahon circumvented WWE’s internal accounting controls, leading to misstatements in the company’s financial statements. He will pay a $400,000 civil penalty and reimburse WWE about $1.3 million without admitting or denying the findings. McMahon stated that the case is now closed after nearly three years of investigation, clarifying that it involved minor accounting errors regarding personal payments made while he was CEO of WWE.
The SEC alleges that McMahon did not disclose a $3 million payment to a former employee and a $7.5 million payment to a female independent contractor to avoid them filing claims. This led to an overstatement of WWE’s net income by approximately 8% in 2018 and 1.7% in 2021. Reports also revealed that McMahon paid a total of $12 million over 16 years to suppress allegations of sexual misconduct and infidelity. McMahon and the WWE faced accusations of sex trafficking and abuse from a former employee last January, leading McMahon to step down from his roles in the WWE’s parent company.
Meanwhile, the U.S. Department of Justice opened a probe into the allegations, and a civil case brought by the former employee continued alongside the criminal investigation. This settlement coincides with Linda McMahon, Vince McMahon’s wife and former CEO of WWE, undergoing Senate confirmation hearings for education secretary under President-elect Donald Trump’s administration.
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