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Federal prosecutors are investigating whether billionaire Mark Walter committed fraud by concealing financial connections while borrowing billions from his own insurance companies.

Federal prosecutors and the Securities and Exchange Commission are investigating whether billionaire Mark Walter committed fraud by concealing financial connections while borrowing billions of dollars from insurance companies he controls. The investigation focuses on four businesses that served as intermediaries between the insurers and other businesses within Walter's empire. While Walter and his businesses have not been accused of any crimes yet, the probe seeks to determine if the financial connections were properly disclosed during the loan process. Walter serves as the CEO of Guggenheim Partners, the parent company of Guggenheim Securities and Guggenheim Investments. He also owns the Los Angeles Dodgers and recently agreed to sell the Los Angeles Lakers to Joshua Kushner and Bob Iger for a record $12.5 billion. The proceeds from the loans passed through the four firms under scrutiny before funding other Walter-linked businesses. Walter recently offered to pledge his equity stake in Guggenheim Partners to raise billions of dollars to clean up the balance sheet of his insurance companies.

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