Vince McMahon, Former WWE Chairman has struck a deal with American authorities in his hush money case.
McMahon has agreed to pay $1.7 million to settle allegations related to payments made to silence former employees about misconduct involving him and his company, WWE.
The U.S. Securities and Exchange Commission (SEC) revealed on Friday that McMahon made two undisclosed payments: $3 million to a former employee in 2019 and $7.5 million to an ex-independent contractor in 2022.
These payments were aimed at preventing the individuals from speaking out about allegations involving McMahon, but the SEC found that McMahon failed to inform WWE’s Board of Directors and other officials about these agreements, a violation of corporate governance rules.
According to Thomas P. Smith Jr., the SEC’s New York Regional Office Executive, “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.”
In addition to the $400,000 fine, McMahon has agreed to reimburse WWE $1,330,915.90 for the undisclosed payments. However, the SEC clarified that McMahon neither admitted nor denied the findings.
Following the settlement, McMahon expressed satisfaction with the resolution in a statement on social media, stating, “The case is closed. Today ends nearly three years of investigation by different governmental agencies.”
He defended his actions, calling the investigation a case of “minor accounting errors” regarding personal payments made during his time as WWE’s CEO.
This resolution concludes years of scrutiny after McMahon stepped down from his role in WWE in 2022 following the allegations, only to later return to the company.
He resigned again as Executive Chairman of TKO, the parent company of WWE, following an explosive sexual assault lawsuit filed by a former staffer.
The investigation and its aftermath had before now, significantly impacted McMahon’s career.
