The Securities and Exchange Commission said Friday that World Wrestling Entertainment co-founder Vince McMahon will pay more than $1.7 million in connection with charges that he failed to disclose payment arrangements related to sexual assault charges.
The SEC said McMahon circumvented WWE’s internal accounting controls and caused material misstatements in the company’s 2018 and 2021 financial statements.
The SEC added that McMahon accepted the settlement without admitting or denying its conclusions. He will pay a civil penalty of $400,000 and reimburse WWE approximately $1,331,000.
“Company executives cannot enter into significant agreements on behalf of the company they serve and conceal that information from the company’s oversight functions and auditor,” Thomas P. Smith Jr., regional director, said in a statement. associate in the New York regional office.
Representatives for McMahon and WWE did not immediately respond to requests for comment.
The SEC alleges that McMahon failed to disclose a $3 million payment paid to a former WWE employee and another $7.5 million paid to an independent contractor, in exchange for no claims being filed against him. As a result, the agency said, WWE overstated its 2018 net income by about 8% and its 2021 net income by about 1.7%.
The Wall Street Journal reported in 2022 that McMahon had paid a total of $12 million over 16 years to quell allegations of sexual misconduct and infidelity.
Last January, McMahon and the WWE were accused of sex trafficking and abuse by a former employee. A day later, McMahon resigned as CEO of TKO, WWE’s parent company, and resigned from all of his WWE roles.
