The Securities and Exchange Commission has settled a case against Vince McMahon that he failed to disclose two settlement agreements he made privately with two women as part of the $10.5 million hush money scandal.
McMahon did not admit or deny the accusations but he agreed to cease-and-desist from violating certain provisions, pay a $400,000 civil penalty and reimburse WWE approximately $1.3 million.
In detailing the agreements, the SEC stated that the case involved agreements from 2019 and 2022. McMahon paid a former worker $3 million to keep their relationship a secret.
“The other agreement obligated McMahon to pay a former WWE independent contractor $7.5 million in exchange for the independent contractor’s agreement to not disclose her allegations against McMahon and her release of potential claims against WWE and McMahon,” stated the SEC.
“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,” Thomas P. Smith Jr., associate regional director in the New York Regional Office, said in a statement.
Janel Grant’s attorney Ann Callis had this to say about today’s decision: “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.”
Janel Grant has accused McMahon of making her employment contingent on engaging in a sexual relationship with him and being sexually available to others within WWE.
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