Vince McMahon Settles with SEC, Agrees to Pay Over $1.7 Million for Hush Money Agreements
Vince McMahon, the co-founder of World Wrestling Entertainment, has reached a settlement with the Securities and Exchange Commission over hush money agreements. The SEC has determined that McMahon failed to disclose payment agreements related to sexual assault charges, which resulted in misstatements in the company’s financial statements in 2018 and 2021. As part of the settlement, McMahon will pay over $1.7 million, including a $400,000 civil penalty and reimbursement to WWE.
In a statement released by McMahon, he expressed relief that the case has come to a close after nearly three years of investigation. He clarified that the issue stemmed from minor accounting errors related to personal payments made during his time as CEO of WWE. The SEC alleges that McMahon failed to disclose payments of $3 million to a former employee and $7.5 million to a female contractor in exchange for their silence, leading to overstated net income figures for WWE in 2018 and 2021.
Reports from The Wall Street Journal indicate that McMahon had paid a total of $12 million over 16 years to suppress allegations of misconduct. In light of previous accusations and investigations, McMahon resigned from his positions within WWE last year. The settlement coincides with Linda McMahon, Vince’s wife and former WWE CEO, preparing for Senate confirmation hearings for a role in the incoming administration.
This resolution marks the conclusion of a complex and challenging chapter for Vince McMahon and the WWE. As the details are finalized, McMahon can move forward with the lessons learned from this experience.
