Vince McMahon, who co-founded and beforehand served because the CEO of WWE, and the Securities and Exchange Commission (SEC) have reached a settlement following a yearslong probe over undisclosed settlements.
The federal investigation was launched to find out whether or not McMahon disclosed to the corporate’s board and others that he signed two settlement agreements value greater than $10 million with two ladies to ensure that them to not reveal potential claims in opposition to himself and WWE.
The SEC mentioned McMahon, with out admitting or denying its findings, agreed to stop and desist from violating sure provisions, pay a $400,000 civil penalty and reimburse WWE roughly $1.3 million.
CLICK HERE FOR MORE SPORTS COVERAGE ON FOXNEWS.COM
WWE Chairman and CEO Vince McMahon speaks at a information convention asserting the WWE Network on the 2014 International CES on the Encore Theater at Wynn Las Vegas in Las Vegas on Jan. 8, 2014. (Ethan Miller/Getty Images)
McMahon launched a press release on Friday, arguing the scenario was the results of “minor accounting errors.”
“The case is closed. Today ends practically three years of investigation by completely different governmental businesses. There has been quite a lot of hypothesis about what precisely the federal government was investigating and what the result could be. As as we speak’s decision reveals, a lot of that hypothesis was misguided and deceptive,” the assertion learn. “In the top, there was by no means something extra to this than minor accounting errors with regard to some private funds that I made a number of years in the past whereas I used to be CEO of WWE. I’m thrilled that I can now put all this behind me.”
Federal prosecutors declined to remark.
VINCE MCMAHON CALLS SEXUAL MISCONDUCT ALLEGATIONS AGAINST HIM ‘PURE FICTION’
SEC officers on Friday mentioned one settlement was signed in 2019 and the opposite in 2022. One settlement required McMahon to pay a former worker $3 million in alternate for the previous employee’s settlement to not disclose her relationship with McMahon and her launch of potential claims in opposition to WWE and McMahon.
The different settlement obligated McMahon to pay a former WWE unbiased contractor $7.5 million in alternate for the unbiased contractor’s settlement to not disclose her allegations in opposition to McMahon and her launch of potential claims in opposition to WWE and McMahon, per the SEC.
WWE proprietor Vince McMahon enters the world throughout WrestleMania at AT&T Stadium in Arlington, Texas, on April 3, 2022. (Joe Camporeale-USA TODAY Sports)
McMahon stepped down from his position as chairman and CEO of the favored skilled wrestling promotion in 2022, pending the outcomes of an inside investigation which stemmed from allegations of hush-money agreements. His daughter Stephanie McMahon assumed her father’s management duties.
Just a few weeks after stepping down, McMahon introduced his intentions to retire from WWE. He returned as government chairman in 2023, however resigned from TKO — an organization that was the results of a merger between the WWE and Zuffa, UFC’s guardian firm — in 2024. McMahon’s resignation got here after a former worker filed a federal lawsuit accusing him and one other former government of great sexual misconduct.
McMahon maintained he dedicated no wrongdoing following the submitting of the lawsuit.
WWE Chairman and CEO Vince McMahon attends a press convention to announce WrestleMania XXIX at MetLife Stadium in East Rutherford, New Jersey, on Feb. 16, 2012. (John W. Ferguson/WireImage)
By McMahon not disclosing the agreements to WWE’s board, authorized division, accountants, monetary reporting personnel or auditors, it circumvented the corporate’s system of inside accounting controls and induced materials misstatements in its 2018 and 2021 monetary statements, the fee mentioned.
CLICK HERE TO GET THE FOX NEWS APP
The SEC’s order discovered that, as a result of the funds required by the 2019 and 2022 agreements weren’t recorded, WWE overstated its 2018 web earnings by roughly 8% and its 2021 web earnings by about 1.7%.
Once WWE realized of the settlement agreements, it issued a restatement of its monetary statements in August 2022.
“Company executives can’t enter into materials agreements on behalf of the corporate they serve and withhold that data from the corporate’s management capabilities and auditor,” Thomas P. Smith Jr., affiliate regional director within the New York Regional Office, mentioned in a press release.
The Associated Press contributed to this report.
Follow Fox News Digital’s sports coverage on X, and subscribe to the Fox News Sports Huddle newsletter.
