Former WWE CEO Vince McMahon reaches settlement with SEC after lengthy investigation
WWE co-founder and one-time executive Vince McMahon has reached a settlement with the U.S. Securities and Exchange Commission (SEC) after a year-long investigation into the undisclosed settlement.
The federal investigation is aimed at determining whether McMahon disclosed to the company’s board of directors and others that he signed two settlements worth more than $10 million with two women to prevent them from disclosing potential claims against him and WWE.
The SEC said McMahon, without admitting or denying its findings, agreed to cease violating certain rules, pay a $400,000 civil penalty and repay approximately $1.3 million to WWE.
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WWE Chairman and CEO Vince McMahon at the 2014 International CES Press Conference at the Encore Theater at Wynn Las Vegas on January 8, 2014 The establishment of WWE Network was announced on . (Ethan Miller/Getty Images)
McMahon issued a statement on Friday saying the situation was the result of a “minor accounting error.”
“This case is closed. Today concludes nearly three years of investigation by various government agencies. There has been much speculation as to what exactly the government is investigating and what the outcome will be. As today’s resolution demonstrates, much of the speculation has been misguided and misleading ,” the statement read. “In the end, there was nothing other than a minor accounting error regarding some personal payments I made when I was CEO of WWE a few years ago. I’m glad I can now put all of this behind me.”
Federal prosecutors declined to comment.
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SEC officials said Friday that one agreement was signed in 2019 and the other in 2022. McMahon’s relationship and waived potential claims against WWE and McMahon.
According to SEC rules, another agreement required McMahon to pay a former WWE independent contractor $7.5 million in exchange for the independent contractor agreeing not to disclose her allegations against McMahon and to drop her claims against WWE and McMahon. Mahon’s potential claim.
WWE owner Vince McMahon makes his entrance during WrestleMania at AT&T Stadium on April 3, 2022 in Arlington, Texas. (Joe Camporeal-USA TODAY Sports)
McMahon will step down as chairman and CEO of the popular professional wrestling promotion in 2022, pending the outcome of an internal investigation into the hush-money agreement allegations. His daughter, Stephanie McMahon, has taken on her father’s leadership responsibilities.
Weeks after stepping down, McMahon announced his intention to retire from WWE. He returned as executive chairman in 2023, but resigned from TKO (a company formed from the merger of WWE and UFC parent company Zuffa) in 2024. After an employee.
McMahon insisted he had committed no wrongdoing after the lawsuit was filed.
On February 16, 2012, WWE Chairman and CEO Vince McMahon attended a press conference at MetLife Stadium in East Rutherford, New Jersey, to announce the 29th Annual Wrestling Championships. Mania Contest. (John W. Ferguson/WireImage)
The committee said McMahon failed to disclose these agreements to WWE’s board of directors, legal department, accountants, financial reporting personnel or auditors, thereby circumventing the company’s internal accounting controls and causing material errors in the 2018 and 2021 financial statements. Report.
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The SEC’s order found that WWE overstated its 2018 net income by approximately 8% and its 2021 net income by approximately 1.7% because payments required by the 2019 and 2022 agreements were not recorded.
After WWE learned of the settlement, it issued a restatement of its financial statements in August 2022.
Thomas P. Smith Jr., deputy regional director of the New York field office, said in a statement that “corporate executives cannot enter into significant agreements on behalf of the companies they serve, nor can they submit information to the company’s control functions and auditors. The teacher concealed this information.
The Associated Press contributed to this report.
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