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United States prosecutors have opened investigations into potential financial improprieties at two insurance companies and Guggenheim Partners, both of which are headed by Los Angeles Lakers majority owner Mark Walter, as reported by Bloomberg.
Investigators are also looking into Delaware Life Insurance Co. and Clear Spring Life and Annuity Co. Walter controls the insurers and has a stake in Guggenheim through TWG Global holding company.
The probe includes both the Federal Bureau of Investigation and a parallel investigation with the U.S. Securities and Exchange Commission.
Insurance companies primarily provide retirement annuities and life insurance products, investing customers’ money to generate returns that help fund future payouts.
Prosecutors are investigating whether Walter’s insurers invested billions of dollars in private loans instead of purchasing them on the public market, if the loans were tied to Walter’s own companies and whether the insurers concealed that information.
Walter has not been accused of any wrongdoing at this time, and investigations can conclude without charges or enforcement actions being taken. Similar cases rarely reach the court systems.
TWG Global and Group 1001, which is the parent company of both insurers, said in statements that they are cooperating with the investigation.
Are Mark Walter’s sports franchises affected by federal probe?
In addition to being the majority owner of the Lakers, Walter holds the same title for the two-time defending World Series champion Los Angeles Dodgers. He is also the owner of the WNBA’s L.A. Sparks, Chelsea FC of the Premier League, the Cadillac Formula 1 team and the entirety of the Professional Women’s Hockey League.
None of the teams are impacted by the investigations at the moment, and they very well may not be when it concludes. However, if Walter is charged with wrongdoing or crimes, each league may be forced to decide whether Walter must sell the aforementioned teams.
The NBA Board of Governors unanimously approved the sale of the majority interest in the Lakers to Walter last October in what was a monumental moment for the franchise.
“The Los Angeles Lakers are one of the most iconic franchises in all of sports, defined by a history of excellence and the relentless pursuit of greatness,” Walter said in a statement. “Few teams carry the legacy and global influence of the Lakers, and it’s a privilege to work alongside Jeanie Buss as we maintain that excellence and set the standard for success in this new era, both on and off the court.”
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