Former WWE Boss Vince McMahon Faces SEC Charges
Settlement Reached Over Undisclosed Payments
Vince McMahon, the former CEO of WWE, has agreed to settle charges with the Securities and Exchange Commission (SEC) over undisclosed payments to two women totaling $10.5 million. The payments were made to keep the women quiet about McMahon’s sexual conduct.
* Failure to Disclose Agreements*
The SEC alleges that McMahon failed to inform WWE’s board of directors about the nondisclosure agreements, which were made on behalf of him and the company. This failure led to material misstatements in WWE’s 2018 and 2021 financial statements.
Civil Penalty and Reimbursement
As part of the settlement, McMahon will pay a $400,000 civil penalty and reimburse WWE $1.33 million. He has also consented to an order finding that he violated the Securities Exchange Act.
McMahon’s Statement
In a statement, McMahon suggested that he is no longer under criminal investigation by the Department of Justice for issues related to the women. “The case is closed. Today ends nearly three years of investigation by different governmental agencies,” he said.
Allegations of Sexual Assault and Trafficking
A lawyer for Janel Grant, a former WWE employee who received a settlement from McMahon in 2022, alleges that McMahon’s behavior was more serious than minor accounting errors. “During his time leading WWE, Vince McMahon acted as if rules did not apply to him, and now we have confirmation that he repeatedly broke the law to cover up his horrifying behavior, including human trafficking,” said the attorney Ann Callis.
Ongoing Investigation
Despite McMahon’s statement, a lawyer for Grant says the investigation is continuing. The SEC’s charges prove that the NDA McMahon coerced Grant into signing violates the law, and therefore her case must be heard in court.
WWE’s Financial Statements
The SEC said that McMahon’s failure to disclose the agreements caused WWE to make material misstatements in its financial statements. The company overstated its net income for 2018 by about 8% and its 2021 net income by about 1.7%.
McMahon’s Resignation and Return
McMahon resigned as CEO and chairman of WWE in July 2022, but returned as executive chairman in January 2023. He later merged WWE with the parent company of Ultimate Fighting Championship and Endeavor Group Holdings, forming a new entity, TKO Group Holdings.
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