Former WWE CEO Vince McMahon Now Being Investigated by SEC, Federal Prosecutors

Former WWE CEO Vince McMahon may have already announced his retirement, but he is still not yet out of being in hot water.

The Securities and Exchange Commission (SEC) and federal prosecutors have both launched probes into the hush money payments he made following sexual misconduct allegations.

World Wrestling Entertainment (WWE) disclosed previously unrecorded payments by McMahon worth $14.6 million. According to CNBC, the company's board of directors is also overseeing an independent review of these hush money payments and McMahon's sexual misconduct allegations.

Federal Investigations Hastened Vince McMahon's Retirement

Vince McMahon initially showed that he was staying in the company for the foreseeable future with appearances on WWE programming like Raw and Smackdown, despite the allegations surfacing. However, he suddenly announced his retirement soon after.

According to the Wall Street Journal, these federal investigations into his actions helped hasten his retirement. His retirement was announced as WWE's internal investigation continued.

WWE has also admitted that they have already received "regulatory, investigative and enforcement inquiries, subpoenas, or demands" connected to McMahon's alleged hush money payments to cover up his sexual misconduct.

These sexual misconduct allegations first surfaced in mid-June thanks to a report by the Wall Street Journal, which revealed that the WWE board was investigating a $3 million settlement by the former CEO and wrestling booker to a former paralegal. McMahon reportedly had an affair with her in 2019.

The Wall Street Journal then followed up with a new report revealing that McMahon agreed to pay more than $12 million over the past 16 years to four different women.

All four of these women were former employees of the company, including the former paralegal and a former wrestler Vince McMahon allegedly coerced into performing oral sex.

WWE Says It Will Record Vince McMahon Hush Money Payments in Updated Financial Reports

WWE has announced that it will update its annual financial reports for 2019, 2020, and 2021. These annual financial reports will reflect the previously-unrecorded $14.6 million worth of hush money payments that Vince McMahon allegedly paid from 2006 until this year.

It will happen when the company releases the report on its second-quarter earnings. However, the WWE noted that the report could be delayed because of the revisions. It was supposed to be released on August 9.

CNBC reported that WWE shares rose more than 8% on Monday, reaching a 52-week high. That comes as investors became more bullish about the sale of the iconic wrestling company.

So far, WWE's stock is up by 45% this year, and it has outpaced the S&P 500. Despite all the allegations, Vince McMahon remains the company's majority shareholder, owning an approximately 32% stake.

This article is owned by Latin Post.

Written by: Rick Martin

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