A former World Wrestling Entertainment licensing and merchandising executive pled guilty to mail fraud last week after admitting to his role in a kickback scheme.
James Bell, 49, the former senior VP of licensing and merchandising for Stamford, CT-based WWE, faces up to five years in prison and restitution of about $1.9 million to the company, according to news reports.
The kickback scheme began in at least 1998 after Bell had arranged for WWE to hire Stanley Shenker and Associates, Inc. (SSAI), New Canaan, CT, to help broker licensing deals with manufacturers. Bell allegedly received cash kickbacks through October 2000 for arranging for WWE to pay SSAI licensing commissions it was not entitled to, according to news reports. The case was heard in the U.S. District Court in Bridgeport, CT. Sentencing is set for April 29. Bell lives in Norwalk, CT.
Meanwhile, WWE is suing Bell and his company, Bell Licensing, in a federal lawsuit.
The suit was filed Oct. 19 in the Federal District Court for the South District of New York against Bell, Shenker, WWE toy licensee Jakks Pacific Inc., two foreign subsidiaries of Jakks and THQ, Inc.
According to the suit, WWE claimed Jakks Pacific illegally wired money into Bell and SSAI’s accounts to secure the licensing rights for WWE-themed video games.
The suit arises out of litigation initially commenced by SSAI against WWE in Connecticut state court for commissions SSAI claimed it had earned while serving as WWE’s licensing agent. WWE said that during the suit, which was dropped, it discovered certain irregularities in its licensing program beginning in 1998, when SSAI served as WWE’s licensing agent and Bell served in his capacity with WWE.
Jakks Pacific has been WWE’s toy licensee since 1995. The Jakks-THG joint venture signed the video game licensing deal in 1998. That deal is scheduled to expire in 2009.
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