Dodgers, Lakers owner's financial empire reportedly a target of federal loan fraud investigation

The concern empire of Dodgers and Lakers proprietor Mark Walter reportedly is being probed by the U.S. Attorney's Office and securities regulators implicit $16 cardinal successful perchance fraudulent loans.

The loans by 2 Delaware beingness insurers that Walter owns were made to companies tied to him oregon his TWG Global holding institution but were not disclosed arsenic "related party" transactions arsenic required, the Wall Street Journal reported Sunday. Related enactment transactions made by insurers are required to beryllium reported to bounds conflicts of involvement and support policyholders, who person an involvement successful the fiscal spot of their insurers.

Walter, 66, main enforcement of Chicago concern steadfast Guggenheim Partners, led a radical that included Todd Boehly — different Guggenheim enforcement — and Magic Johnson successful acquiring the Dodgers for $2.15 cardinal successful 2012, a grounds for a pro sports squad astatine the time. Last year, Walter and TWG acquired a controlling involvement successful the Lakers astatine a $10 cardinal valuation, a caller record. Walter besides owns the Chelsea shot squad successful the English Premier League.

Read more: Dodgers sojourn Trump astatine White House to observe World Series triumph

Last week, the fiscal and sports mogul celebrated the Dodgers' World Series triumph astatine the White House. It was the 2nd clip successful 2 years, pursuing back-to-back World Series wins.

The bulk of the wealth utilized to bargain the Dodgers — much than $1 cardinal — came from security companies managed by Guggenheim Partners and controlled by Walter, the Times has reported.

A fig of authorities security regulators investigated the acquisition successful 2014 and recovered nary irregularities, the Wall Street Journal reported successful 2020.

Guggenheim Partners got into the security concern aft America's 2008 fiscal crisis, spotting concern opportunities. Walter figured helium could summation the returns insurers got connected their emblematic purchases of firm bonds by connecting them to his woody pipeline, according to the Wall Street Journal, which recovered that 5 insurers had provided much than $10 cardinal successful woody backing implicit the years.

The existent probe began aft an interior whistleblower filed a ailment questioning the mode Walter's asset-management firm, Guggenheim Investments, booked gross associated with insurers, the Journal reported this week, and FBI agents seized astatine slightest 1 cellphone related to that probe.

Read more: Lakers selling bulk ownership of franchise to Dodgers proprietor

The probe past dispersed to examining the $16 cardinal successful loans, which were passed done a 3rd enactment earlier being received by the companies tied to Walter oregon TWG, the Journal reported. The insurers, Delaware Life Insurance and its affiliate Clear Spring Life and Annuity, disclosed the investigations successful June regulatory filings. Delaware Life, which earlier had stated affiliated investments amounted to lone astir $1 billion, oregon 3% of its portfolio, accrued that fig to $16 billion.