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WWE Co-Founder Faces $1.7 Million Fine
Vince McMahon, the former CEO of World Wrestling Entertainment (WWE), has been fined $1.7 million by the Securities and Exchange Commission (SEC).
The SEC alleges that McMahon failed to disclose hush money payments made to former employees and a female contractor to prevent them from reporting sexual misconduct claims.
McMahon is accused of violating internal accounting controls and causing misstatements in WWE’s financial statements.
Attorney Ann Callis, representing a former WWE employee who filed a lawsuit against McMahon, claims that the SEC’s charges support the employee’s allegations of sex trafficking and sexual misconduct.
McMahon has denied any wrongdoing, claiming the payments were minor accounting errors. He has agreed to pay a $400,000 civil penalty and reimburse WWE over $1.3 million.
The SEC’s investigation has concluded, and McMahon has stepped down from his role as executive chairman of TKO Group Holdings, WWE’s parent company. The investigation also included allegations of sex trafficking and sexual assault.