Ex-WWE CEO Vince McMahon to Settle SEC Case for $1.7M
Vince McMahon, the former chief executive officer of World Wrestling Entertainment Inc., hid settlements he negotiated with a former employee and company contractor, leading to incorrect financial statements in 2018 and 2021, the Securities and Exchange Commission alleged Friday.
McMahon, without admitting to or denying the SEC allegations, agreed to pay a $400,000 civil penalty and reimburse WWE $1.3 million, the SEC said.
“In the end, there was never anything more to this than minor accounting errors with regard to some personal payments that I made several years ago while I was CEO of WWE, McMahon said in an emailed statement. “I'm thrilled that I can now put all this behind me.
McMahon and his wife, Linda McMahon, built the family's professional wrestling organization into a colossus over the course of decades. President-elect Donald Trump has selected Linda McMahon as his nominee for education secretary.
The SEC said in one of McMahon's settlement agreements, he agreed to pay a former employee $3 million in exchange for that worker's agreement to not disclose her relationship with McMahon. In another pact, the agency said McMahon agreed to pay a former WWE independent contractor $7.5 million in exchange for the contractor's agreement to not disclose her allegations against the former WWE CEO.
Keeping the agreements silent kept them off the company's books, which led to WWE overstating its 2018 and 2021 net income, according to the SEC.
“Company executives cannot enter into material agreements on behalf of the company they serve and withhold that information from the company's control functions and auditor, Thomas Smith Jr., associate regional director in the SEC's New York Regional Office, said in a statement.
McMahon recently has faced allegations of misconduct, with a former WWE employee suing her former boss. McMahon's attorney said last year she was confident that evidence would prove the allegations are false.
Former WWE CEO Vince McMahon. Photo: Navy Petty Officer 2nd Class Dominique A. Pineiro/DoD
