The Securities and Exchange Commission (SEC) announced Friday that Vince McMahon, co-founder of World Wrestling Entertainment (WWE), will pay over $1.7 million to resolve charges that he failed to disclose financial agreements related to sexual assault allegations.
The SEC accused McMahon of bypassing WWE’s internal accounting controls, resulting in material misstatements in the company’s financial reports for 2018 and 2021. Without admitting or denying the charges, McMahon agreed to a $400,000 civil penalty and to reimburse WWE approximately $1.33 million.
“Company executives cannot enter into material agreements and withhold that information from the company’s controls and auditors,” said Thomas P. Smith Jr., Associate Regional Director of the SEC’s New York Regional Office.
McMahon issued a statement claiming the case stemmed from “minor accounting errors” related to personal payments he made during his tenure as WWE CEO. He expressed relief that the investigation, which spanned nearly three years, had concluded.
Meanwhile, U.S. prosecutors are continuing a criminal investigation into McMahon, and a civil lawsuit filed by former WWE employee Janel Hill alleging sexual assault and trafficking remains active. Hill’s attorney, Ann Callis, stated that McMahon’s actions demonstrated a disregard for the law, emphasizing that her client’s case should proceed in court.
The SEC alleges McMahon concealed payments of $3 million to a former WWE employee and $7.5 million to a female contractor in exchange for their silence, leading WWE to overstate its 2018 net income by 8% and its 2021 net income by 1.7%. Although the SEC did not name the recipients, reports from 2022 indicated McMahon had paid a former WWE employee $3 million to settle sexual assault claims.
McMahon stepped down from his roles at WWE following these allegations. Reports suggest he has paid up to $12 million over 16 years to suppress various claims of misconduct.
The settlement coincides with Linda McMahon, Vince McMahon’s wife and former WWE CEO, preparing for Senate confirmation hearings for a cabinet role in President-elect Donald Trump’s second administration.
