On Friday, it was revealed that the SEC has reached an agreement with Vince McMahon, a former executive at WWE, over allegations he made unreported payments to conceal them from the company’s accounting system. These hidden payments led to false reporting in WWE’s financial statements for 2018 and 2021.
Vince McMahon has given approval for the SEC’s order that he breached the Securities Exchange Act by intentionally bypassing WWE’s internal accounting regulations and providing false or misleading information to their auditor, according to the agency. “Without admitting or denying the SEC’s allegations,” McMahon has agreed to stop violating these provisions, pay a fine of $400,000, and repay WWE $1.33 million in accordance with Section 304(a) of the Sarbanes-Oxley Act.
As per the SEC’s ruling, McMahon reached two separate settlement agreements. In one, he agreed to pay a former employee $3 million, on condition that she wouldn’t reveal their relationship and relinquish any claims against WWE and McMahon. In another, McMahon agreed to pay a former independent contractor of WWE $7.5 million, under the same terms – non-disclosure of allegations against him and releasing potential claims against WWE and McMahon.
On X Friday, McMahon declared that the case has been officially concluded. This marks the end of almost three years of investigations by various governmental bodies. There has been a lot of conjecture about what exactly was being investigated and what the outcome would be. Today’s resolution demonstrates that much of this speculation was incorrect and misleading. Ultimately, it turns out that there was nothing substantial to this other than minor bookkeeping mistakes concerning some personal expenses I made several years ago while serving as CEO of WWE. I am relieved that I can now move past all this.
In June 2022, Vince McMahon resigned as CEO of WWE during an investigation by the company’s board regarding alleged payments he made to women accusing him of sexual misconduct. Later in March 2023, McMahon repaid WWE $17.4 million for costs associated with or stemming from this investigation. As the CEO of WWE, McMahon had personally paid out $19.6 million that should have been reported as business expenses, according to the company’s disclosure. The company stated that $14.6 million of these payments were related to the alleged misconduct incidents dating back to 2006, while an additional $5 million was given to Donald Trump’s charity, as reported by the Wall Street Journal.
In January 2023, McMahon re-joined the company as Executive Chairman, taking charge of initiatives aimed at selling World Wrestling Entertainment (WWE). Notably, WWE had combined with UFC in 2023 to form TKO Group, a publicly traded entity separate from other companies, following a deal orchestrated by Endeavor.
As a dedicated cinephile translating this corporate jargon, here’s my take:
When Vince McMahon neglected to reveal certain contracts with WWE, the Securities and Exchange Commission (SEC) found that these agreements were not properly evaluated or accounted for in WWE’s financial reports. This oversight led to an overstatement of WWE’s 2018 net income by around 8% and its 2021 net income by approximately 1.7%.
The SEC also stated that these payments should have been disclosed as transactions between related parties, which they were not. To add insult to injury, McMahon signed representation letters for WWE’s auditor without revealing the existence of either settlement agreement.
Once the agreements were brought to light, WWE revised its financial statements in August 2022.
Thomas P. Smith Jr., an associate regional director at the SEC’s New York regional office, stated that it is improper for company executives to make significant deals on behalf of their companies without informing the company’s oversight departments and auditors.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2025-01-10 19:16