Former WWE CEO Vince McMahon has reached an agreement with the Securities and Exchange Commission over his infamous hush money case.
Mr. McMahon had come under fire for undisclosed payments to independent contractors who allegedly had relationships with employees. He agreed to pay a $1.7 million settlement to end the matter. According to TMZ.
“The case has been solved. Today marks the end of a nearly three-year investigation by various government agencies. There has been much speculation about what exactly the government will investigate and what the outcome will be. Today's As the resolution demonstrates, much of that speculation was misguided and misleading,” McMahon said in a statement shared with X on Jan. 10.
Los Angeles, California – June 3: WWE Chairman Vince McMahon attends a press conference regarding WWE Chairman Vince McMahon's $1 million donation at Staples Center on June 3, 2008 in Los Angeles, California. (Photo by Valerie Macon/Getty Images)
The Securities and Exchange Commission announced Friday that it has been determined that McMahon paid large sums of money to two individuals to buy their hush money amid allegations against McMahon and WWE. They said Mr. McMahon paid $3 million to a former employee in 2019 and $7.5 million to a former independent contractor in 2022. The SEC further argued that McMahon's failure to disclose the terms of his contract to WWE's board of directors constituted a violation. , according to TMZ.
“Corporate executives cannot enter into important contracts on behalf of the companies they serve, and cannot share that information with corporate management or auditors,” said Thomas P. Smith Jr., an executive in the New York office. You can't withhold it from people.”
According to TMZ, the SEC announced that McMahon has agreed to pay WWE $1,330,915.90 in restitution and a $400,000 fine.
McMahon did not confirm or deny the SEC's findings.
NEW YORK – MARCH 11: WWE Chairman Vince McMahon attends a press conference to promote WrestleMania XX at Planet Hollywood on March 11, 2004 in New York City. (Photo by Peter Kramer/Getty Images)
“At the end of the day, it was nothing more than a minor accounting error regarding a personal payment I made several years ago when I was CEO of WWE. I'm excited to now be able to put all that behind me. ” McMahon wrote in a letter to X.
The investigation into the allegations against McMahon began in 2022 and led to McMahon stepping down from his prominent role in WWE. (Related: Vince McMahon's sexual harassment and human trafficking lawsuit takes an unexpected turn)
He later returned to WWE, but faced a sexual assault lawsuit by a former WWE employee. He resigned as executive chairman of TKO, the owner of WWE.
