The Securities and Exchange Commission (SEC) announced a settlement of charges against Vince McMahon, former CEO of World Wrestling Entertainment, for actions that circumvented the company's internal accounting controls. McMahon was found to have produced erroneous financial statements.
McMahon consented to the SEC's order without admitting or denying the findings, agreeing to a cease-and-desist from future violations. He will pay a $400,000 civil penalty and reimburse WWE approximately $1.3 million.
The charges related to two settlement agreements totaling $10.5 million for undisclosed payments to a former employee and an independent contractor. The SEC found that these unrecorded payments led WWE to overstate its net income in 2018 and 2021 by 8% and 1.7%, respectively, and should have been disclosed as related party transactions.
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