Prosecutors Focus on Four Businesses Tied to Dodgers Owner Mark Walter – WSJ
Federal prosecutors investigating Mark Walter’s business empire are focused on four entities that served as intermediaries between insurance companies he controlled and businesses he also controlled, the Wall Street Journal reports, citing people familiar with the matter.
Prosecutors and the Securities and Exchange Commission are examining whether Walter, CEO of Guggenheim Partners and owner of the Los Angeles Dodgers and other businesses, or his companies committed fraud by concealing financial connections while borrowing billions from insurers he controls.
The entities are ABS Capital, a Miami firm founded by two former Guggenheim executives; Amistad Financial, which owns EquiTrust, a life insurer once controlled by Guggenheim and Walter; Bradford Allen, a Chicago commercial real-estate broker with longstanding Guggenheim ties; and Hudson Trading, another Chicago firm.
The insurers’ loan proceeds passed through entities purportedly controlled by the four firms before funding other Walter-linked businesses, the people said.
Walter and his businesses have not been accused of crimes. A TWG Global spokesman said they “have always acted in good faith” and denied attempts to circumvent obligations.
Insurers can lend to affiliated entities if the loans are disclosed. After prosecutors questioned TWG’s practices, an internal review found about $20 billion in affiliated loans that had not been properly disclosed.
Walter’s empire is now seeking to raise money, including by restructuring or selling off assets. A recent offer from Josh Kushner, who is Jared Kushner’s brother, and former Disney CEO Bob Iger led him to agree to sell the Los Angeles Lakers at a record $12.5 billion valuation, a rapid turn of events that came just one year after he bought the famed basketball team.
