The business interests of Mark Walter, owner of the Los Angeles Dodgers and Los Angeles Lakers, are under federal investigation for potentially fraudulent loans totaling approximately $16 billion. The probe involves allegations that two Delaware-based life insurance companies owned by Walter issued large loans to entities connected to him or his holding company, TWG Global, without properly disclosing them as “related party” transactions, a regulatory requirement designed to prevent conflicts of interest and safeguard policyholders.
Walter, who also owns the Chelsea Football Club in the English Premier League, is chief executive of Guggenheim Partners, an investment firm. Alongside associates including Todd Boehly and former basketball star Magic Johnson, Walter acquired the Dodgers in 2012 for $2.15 billion and the Lakers more recently. Much of the capital used in the Dodgers’ purchase—over $1 billion—came from insurance companies managed by Guggenheim Partners, which became involved in the insurance sector following the 2008 financial crisis.
The investigation reportedly began after a whistleblower complaint raised concerns about how Guggenheim Investments recorded revenue linked to these insurers. Federal prosecutors in the Southern District of New York, along with the Securities and Exchange Commission, are examining the transactions. FBI agents have seized at least one phone related to the inquiry. The probing now includes scrutiny of loan transfers that passed through third parties before reaching companies tied to Walter or TWG.
Delaware Life Insurance and its affiliate Clear Spring Life and Annuity, the insurers involved, disclosed the investigations in regulatory filings in June. Delaware Life revised its estimate of affiliated investments sharply upward, from around $1 billion to $16 billion. Executives reportedly told credit rating analysts they were unaware that loans had been extended to companies connected to Walter. The insurers also received grand jury subpoenas related to the federal investigation.
To date, previous reviews by state insurance regulators following the Dodgers’ purchase found no irregularities. However, Delaware Life announced plans to restructure some loans and improve internal controls after conducting its own internal review. A ratings agency downgraded the insurer’s outlook to negative due to concerns over increased credit risk and potential damage to regulatory relationships and reputation, though its current financial strength ratings remain unchanged. The insurers’ parent company, Group 1001, stated that its capital position and liquidity remain strong and affirmed its commitment to serving policyholders.
TWG and Walter have not directly responded to media requests, but a company spokesperson stated that Walter and TWG have always acted in good faith, are cooperating with authorities, and remain confident the matter will be resolved favorably. Investigations by federal prosecutors and securities regulators do not necessarily result in charges or enforcement actions, and the inquiry remains ongoing.