Key facts
- U.S. federal prosecutors are focusing on four businesses linked to billionaire Mark Walter's empire.
- These businesses acted as intermediaries between insurance companies controlled by Walter.
- The investigation, involving the SEC, is looking into potential fraud related to concealed financial connections and borrowed billions from insurers.
- Walter and his businesses have not been accused of any crimes.
- Mark Walter is the CEO of Guggenheim Partners.
U.S. federal prosecutors are focusing their investigation into billionaire Mark Walter's business dealings on four companies that acted as intermediaries between insurance companies he controlled, according to a report by The Wall Street Journal. The probe, which also includes the Securities and Exchange Commission, is examining whether Walter or his businesses engaged in fraud by concealing financial ties while borrowing billions of dollars from the insurers.
Sources familiar with the matter indicated that proceeds from loans made by the insurers allegedly passed through these four firms before funding other Walter-linked businesses. The report emphasized that Walter and his businesses have not been accused of any crimes.
Walter holds the position of CEO at Guggenheim Partners, the parent company of Guggenheim Securities and Guggenheim Investments. Separately, Bloomberg News reported last week that Walter had offered to pledge his equity stake in Guggenheim Partners as part of an effort to raise billions to address loans on the balance sheets of its insurance companies. Reuters also reported last week that Walter had reached an agreement to sell the Los Angeles Lakers to venture capitalist Joshua Kushner and former Disney CEO Bob Iger for a record $12.5 billion, just over a year after acquiring a majority stake in the NBA team.