Vince McMahonwho co-founded WWE and previously served as CEO, and the Securities and Exchange Commission (SEC) reached a settlement after a years-long investigation into undisclosed settlements.
The federal investigation was launched to determine whether McMahon disclosed to the company's board of directors and others that he had signed settlement agreements worth more than $10 million with two women so as not to disclose potential claims against himself. and W.E.
McMahon, without admitting or denying its findings, agreed to cease and desist from violating certain provisions, pay a civil fine of $400,000 and compensate WWE approximately $1.3 million, the SEC said.
CLICK HERE FOR MORE SPORTS COVERAGE ON FOXNEWS.COM
WWE Chairman and CEO Vince McMahon speaks at a press conference to announce the WWE Network at the 2014 CES International at the Encore Theater at Wynn Las Vegas in Las Vegas on January 8, 2014. (Ethan Miller/Getty Images)
McMahon issued a statement on Friday, saying the situation was the result of “minor accounting errors.”
“The case is closed. Today brings to a close a nearly three-year investigation by various government agencies. There has been a great deal of speculation about what exactly the government was investigating and what the outcome would be. As today's decision shows, much of this speculation was merely Misleading and misleading,” the statement read. “In the end, there was nothing more than simple accounting errors regarding some personal payments I made several years ago when I was CEO of WWE. I'm thrilled that I can now put all of this behind me.”
Federal prosecutors declined to comment.
Vince McMahon calls sexual misconduct allegations against him 'pure fantasy'
SEC officials said Friday that one agreement was signed in 2019 and the other in 2022. One agreement requires McMahon to pay a former employee $3 million in exchange for the former employee agreeing not to disclose her relationship with McMahon and being released from potential claims against WWE. And McMahon.
The other agreement requires McMahon to pay $7.5 million to a former WWE independent contractor in exchange for the independent contractor agreeing not to disclose its allegations against McMahon and to release potential claims against WWE and McMahon, according to the SEC.
WWE owner Vince McMahon enters the arena during WrestleMania at AT&T Stadium in Arlington, Texas, on April 3, 2022. (Joe Camporeal-USA Today Sports)
McMahon resigned from his position as Chairman and CEO of the popular professional wrestling promotion in 2022, pending the results of an internal investigation arising from allegations of secret money agreements. His daughter, Stephanie McMahon, assumed her father's leadership duties.
A few weeks after stepping down, McMahon announced his intention to retire from WWE. He returned as CEO in 2023, however Quit by TKO — a company that was the result of a merger between WWE and Zuffa, the parent company of the UFC — in 2024. McMahon's resignation came after a former employee filed a federal lawsuit accusing him and another former executive of serious sexual misconduct.
McMahon maintained that he had committed no wrongdoing after filing the lawsuit.
WWE Chairman and CEO Vince McMahon attends a press conference to announce WrestleMania XXIX at MetLife Stadium in East Rutherford, New Jersey, on February 16, 2012. (John W. Ferguson/WireImage)
The committee said McMahon's failure to disclose the agreements to the WWE Board of Directors, Legal Department, accountants, financial reporting staff or auditors may have circumvented the company's system of internal accounting controls and caused material misstatements in its 2018 and 2021 financial statements.
CLICK HERE TO GET THE FOX NEWS APP
The SEC order found that because payments required under the 2019 and 2022 agreements were not recorded, WWE overstated its 2018 net income by approximately 8% and its 2021 net income by approximately 1.7%.
Once WWE learned of the settlement agreements, it issued a restatement of its financial statements in August 2022.
“Corporate executives cannot enter into material agreements on behalf of the company they serve and withhold that information from the company’s monitoring and auditor functions,” Thomas P. Smith Jr., associate regional director in the New York regional office, said in a statement.
The Associated Press contributed to this report.
Follow Fox News Digital Sports coverage on Xand subscribe to Fox News Sports Huddle Newsletter.
