Posted in: AEW, Sports, TV | Tagged: Vince McMahon, wrestling

Vince McMahon Settles SEC Probe, Criminal Investigation Continues

Former WWE Chairman Vince McMahon settled an SEC hush money probe, but a criminal investigation and civil lawsuit loom. What's next for the embattled wrestling mogul?

Former World Wrestling Entertainment (WWE) Chairman Vince McMahon has reached a settlement with the Securities and Exchange Commission (SEC) regarding an investigation into hush money payments made during his tenure at the company to multiple women accusing him of sexual misconduct. As part of the agreement, McMahon will pay a $400,000 fine to the SEC and reimburse WWE $1.3 million for company funds used to facilitate these payments.

This settlement marks a significant development in a saga that has captivated the professional wrestling world for nearly three years. The controversy began in 2022 when McMahon was compelled to retire from his position at WWE following an internal investigation into alleged hush money payments made to multiple women. Despite this setback, McMahon orchestrated a return to power in 2023, facilitating the sale of WWE to Endeavor and its subsequent merger with the Ultimate Fighting Championship (UFC) under the TKO Group Holdings umbrella.

However, McMahon's triumphant return was short-lived. In January 2024, former WWE employee Janel Grant filed a lawsuit accusing McMahon of sexual trafficking, abuse, and assault. The lawsuit named McMahon, former WWE head of talent relations John Laurinaitis, and WWE itself as defendants. In the wake of these allegations, McMahon resigned from all roles at WWE and TKO Group Holdings. McMahon denies the allegations.

The lawsuit led to a federal investigation into McMahon, focusing on charges of sexual assault and sex trafficking. In May 2024, Grant agreed to pause her civil lawsuit in deference to this ongoing federal probe. At the time, Grant's attorney, Ann Callis, stated, "Ms. Grant has consented to a request by the US Attorney for the Southern District of New York to stay her case against Mr. McMahon, WWE and Mr. Laurinaitis, pursuant to a pending non-public investigation."

Following today's SEC settlement, McMahon issued a statement on social media platform X, formerly known as Twitter:

The case is closed. Today ends nearly three years of investigation by different governmental agencies. There has been a great deal of speculation about what exactly the government was investigating and what the outcome would be. As today's resolution shows, much of that speculation was misguided and misleading.

In the end, there was never anything more to this than minor accounting errors with regard to some personal payments that I made several years ago while I was CEO of WWE. I'm thrilled that I can now put all this behind me.

SEC official Thomas P. Smith Jr. also commented on the settlement, stating, "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."

Despite McMahon's assertion that the case is closed, it is important to note that the federal criminal investigation into alleged sex trafficking and Grant's civil lawsuit remains unresolved. Grant's attorney, Ann Callis, issued a statement emphasizing this point:

During his time leading WWE, Vince McMahon acted as if rules did not apply to him, and now we have confirmation that he repeatedly broke the law to cover up his horrifying behavior, including human trafficking. The SEC's charges prove that the NDA Vince McMahon coerced Ms. Grant into signing violates the law, and therefore her case must be heard in court. While prosecutors for the Southern District of New York continue their criminal investigation, we look forward to bringing forward new evidence in our civil case about the sexual exploitation Ms. Grant endured at WWE by Vince McMahon and John Laurinaitis.

The resolution of the SEC investigation represents a significant milestone in the ongoing legal saga surrounding Vince McMahon. However, it is clear that the former WWE chairman's legal troubles are far from over. The pending criminal investigation and civil lawsuit continue to cast a shadow over McMahon's legacy in the professional wrestling industry.

In an ironic twist of fate, McMahon becomes the second WWE Hall of Famer to navigate legal challenges today. Former President and current President-Elect Donald Trump, also a WWE Hall of Fame inductee, received an "unconditional discharge" in the sentencing for his New York State hush-money case. This means Trump will face no additional penalties, although his felony conviction stands.

As this complex legal situation continues to unfold, the professional wrestling community and the broader public will undoubtedly be watching closely. The outcome of the ongoing investigations and legal proceedings could have far-reaching implications for McMahon, WWE, and the industry as a whole.

Enjoyed this? Please share on social media!

Stay up-to-date and support the site by following Bleeding Cool on Google News today!