According to a statement from the company on Wednesday, Vince McMahon, the head of World Wrestling Entertainment, was the subject of both a federal search warrant and a grand jury subpoena.
According to a CNBC story, McMahon is accused of making payments to several women after being accused of sexual impropriety. The subpoena and the search warrant were allegedly executed on July 17 by federal criminal enforcement.
The inquiry into the payments, which the WWE disclosed two days after McMahon stepped down as CEO, was started by the U.S. Securities and Exchange Commission and federal prosecutors one year prior to the search.
At the time, the WWE disclosed $14.6 million in costs that McMahon personally paid for but had never been previously recognized. He continues to lead the business as executive chairman.
The WWE also disclosed that McMahon is now on medical leave as a result of his recent spinal surgery, and he was anticipated to stay on leave for a while. This information was added to the news regarding the search and subpoena.
“[McMahon] went on medical leave after undergoing major spinal surgery,” the report said, adding that he would “remain on medical leave until further notice but will remain Executive Chairman” of the corporation.
The WWE also noted that the corporation “has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters.”
“We continue to fully cooperate with any investigation. Outside of that, we are not going to comment on any legal matter,” CEO Nick Khan said. No charges have yet been brought against McMahon or the corporation.
The WWE and UFC are still anticipated to combine to form a new business owned by The Endeavor Group. According to the most recent report from the WWE, that merger is anticipated to happen later this year. ESPN reports that Endeavor will hold a 51% stake in the new business. 49% of the new business will be owned by stockholders who already possess shares of WWE.
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