Mark Walter's Delaware Life pauses product sales as Truist Financial Corp. and Fifth Third Bancorp respond to federal probes.
Mark Walter's Delaware Life has paused product sales with Truist Financial Corp. and Fifth Third Bancorp following federal investigations into how the insurer reported $20 billion in affiliated assets. The U.S. Attorney's Office in Manhattan and the Securities and Exchange Commission are currently investigating Delaware Life and Clear Spring Life and Annuity. Delaware Life revised its disclosure of affiliated assets from 3% to 42% after receiving grand jury subpoenas in February. While Mark Walter's holding company, TWG Global, stated there has been no fraud, Delaware Life continues to meet with both banks to maintain existing contracts and discuss insurance sector trends. Truist has a long-standing relationship with thes insurer, while Fifth Third began working with the Delaware Life brand in April. The pause comes as Mark Walter prepares to sell his majority stake in the Los Angeles Lakers, following a period of intense scrutiny regarding his business portfolio.