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Vince McMahon Under Investigation for Alleged Hush Money Payments

LAS VEGAS, NV - JANUARY 08: WWE Chairman and CEO Vince McMahon speaks at a news conference announcing the WWE Network at the 2014 International CES at the Encore Theater at Wynn Las Vegas on January 8, 2014 in Las Vegas, Nevada. The network will launch on February 24, 2014 as the first-ever 24/7 streaming network, offering both scheduled programs and video on demand. The USD 9.99 per month subscription will include access to all 12 live WWE pay-per-view events each year. CES, the world's largest annual consumer technology trade show, runs through January 10 and is expected to feature 3,200 exhibitors showing off their latest products and services to about 150,000 attendees. (Photo by Ethan Miller/Getty Images)

The WWE board has officially opened up an inquiry on Vince McMahon and an alleged financial settlement in exchange for a former employee’s silence. McMahon made a $3 million payment in a separation agreement with a former employee due to an alleged affair between McMahon and the employee.

According to reports, the agreement prevents the former staffer from disclosing any information about her relationship with McMahon or making any negative comments about him. McMahon had hired her as a paralegal starting with a $100,000 salary but then gave her a 100% raise after their relationship became sexual. The WWE’s investigation, which has been open since April, also uncovered many other concerning details regarding McMahon and WWE Head of Talent Relations John Laurinaitis.

The investigation revealed years of nondisclosure agreements that relate to misconduct claims from former employees against both McMahon and Laurinaitis. According to emails, the employee who engaged in an alleged affair with McMahon was also involved with Laurinaitis, as McMahon gave the woman to him “like a toy.” Other NDAs involving other employees reportedly totaled millions of dollars in settlements.

McMahons’s attorney, Jerry McDevitt, said in a letter to the Wall Street Journal that the woman had not alleged any harassment by McMahon, and that WWE “did not pay any monies” to her “on her departure.” A WWE spokesman said that the company is fully cooperating with the investigation and that the relationship between the paralegal and McMahon was completely consensual.

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McMahon bought WWE from his father in 1982 when it was named the World Wrestling Federation and helped build the company into a massive entertainment conglomerate. The company has produced stars such as Hulk Hogan, The Rock and John Cena. McMahon’s wife, Linda, formerly served as WWE CEO, while his daughter Stephanie, serves as WWE’s Chief Brand Officer. Although WWE is a publicly-traded company, McMahon still holds the majority of the shareholders’ voting power.