United States Attorney's Office District of Connecticut
Press Release

TWO SENTENCED TO FEDERAL PRISON FOR ROLES IN WWE KICKBACK SCHEME

The United States Attorney for the District of Connecticut announced that two men were sentenced today by United States District Judge Stefan R. Underhill in Bridgeport for their participation in a kickback scheme that defrauded World Wrestling Entertainment, Inc. (WWE). STANLEY SHENKER, age 61, of Royal Palm Beach, Florida, formerly of New Canaan, Connecticut, was sentenced to 33 months of imprisonment, followed by three years of supervised release. SHENKER also was ordered to pay to WWE restitution in the amount of $2,867,239.55. JAMES K. BELL, age 52, of Norwalk, Connecticut, was sentenced to eight months of imprisonment, followed by three years of supervised release. BELL also was ordered to pay a fine of $6000 and restitution in the amount of $953,302.17.

According to documents filed with the court and statements made in court, SHENKER was the sole corporate officer of Stanley Shenker and Associates, Inc. (“SSAI”), which provided licensing services to WWE. BELL was WWE’s Senior Vice President of Licensing and Merchandising. In order to insure that his business with WWE continued on favorable terms, SHENKER paid kickbacks to BELL and then concealed the secret payments from WWE.

During the conspiracy from 1998 to 2003, SHENKER, through SSAI, paid BELL approximately $950,000 in secret payments, which was a fraction of commissions SHENKER received from WWE. SHENKER and BELL disguised these payments by falsely suggesting in invoices that BELL had earned these payments by providing consulting services. With these falsified invoices, SHENKER was able to deduct the kickback payments on his tax returns as purported business expenses.

In October 2000, SHENKER filed a lawsuit against WWE over an employment contract dispute. During this litigation, SHENKER and BELL sought to conceal the original invoices that suggested that BELL had provided consulting invoices because the invoices still reflected BELL receiving substantial payments relating to clients with which WWE was doing business. Instead, SHENKER and BELL agreed to replace the original invoices with a new set of even more misleading and false invoices that fraudulently suggested that payments from SHENKER and SSAI to BELL related to developmental projects having nothing to do with WWE licensees.

On January 12, 2007, SHENKER pleaded guilty to one count of conspiracy to transport money obtained by fraud in interstate commerce and wire fraud by engaging in a scheme to defraud WWE of money, property and honest services. On February 10, 2005, BELL pleaded guilty to one count of mail fraud.

This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U. S. Attorneys Richard J. Schechter and Christopher W. Schmeisser.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov