By Jonathan Stempel and Chris Prentice
WASHINGTON/NEW YORK (Reuters) – Vince McMahon, the previous World Wrestling Leisure (NYSE:) chief government, settled U.S. Securities and Alternate Fee fees he hid from the corporate’s board two settlement agreements value $10.5 million with ladies who had potential claims in opposition to him.
The SEC mentioned on Friday that McMahon’s actions circumvented WWE’s inside accounting controls, and led to the corporate’s restating its monetary statements in August 2022.
McMahon, a 79-year-old billionaire, didn’t admit wrongdoing in agreeing to pay a $400,000 civil nice and reimburse $1.33 million to WWE.
In a press release, he mentioned the accord ends almost three years of investigations by varied authorities businesses.
“The case is closed,” McMahon mentioned. “Ultimately, 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 am thrilled that I can now put all this behind me.”
McMahon stepped down as WWE’s chief government in 2022, because the wrestling firm was investigating accusations mirroring these within the SEC case.
In line with the SEC, one of many settlement agreements referred to as for McMahon to pay $7.5 million to an unbiased contractor who mentioned he assaulted her and derailed her profession after she refused to have a sexual relationship with him.
The opposite referred to as for McMahon to pay $3 million to a former WWE worker in trade for her silence about their relationship between 2019 and 2022, the SEC mentioned.
Neither girl was recognized by title by the SEC.
Final January, former WWE worker Janel Grant sued McMahon for sexual assault and trafficking, saying he pressured her to signal a nondisclosure settlement in trade for $3 million, after his spouse Linda McMahon realized about their relationship, however paid simply $1 million.
That case continues to be pending, courtroom information present. Vince McMahon has denied Grant’s allegations.
WWE’s restatement got here after an inside investigation recognized $20 million in funds by McMahon between 2006 and 2022 that ought to have been recorded as bills.
The SEC mentioned the failure to document varied funds precipitated WWE to overstate web earnings by 8% in 2018 and 1.7% in 2021.
McMahon resigned final January from wrestling big TKO Group, created from the 2023 merger of WWE and the mother or father of Final Combating Championship, or UFC.
TKO, primarily based in Stamford, Connecticut, didn’t instantly reply on Friday to requests for remark.
Linda McMahon has additionally served as WWE’s chief government. President-elect Donald Trump selected her to turn into secretary of the Division of Schooling. McMahon and her husband are separated, her lawyer has advised media.
