US federal prosecutors are examining possible financial irregularities at two insurance entities controlled by billionaire Mark Walter, alongside a separate probe into Guggenheim Partners.
Citing unnamed sources, Bloomberg reported that Walter’s Delaware Life Insurance and Clear Spring Life and Annuity were served with grand jury subpoenas in February.
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In filings dated 26 June, the companies disclosed that federal prosecutors in Manhattan had raised questions about their failure to reveal that billions of dollars in private credit holdings were tied to other segments of Walter’s business empire.
The businesses noted that the criminal investigation is proceeding in tandem with a separate review by the US Securities and Exchange Commission.
The subpoenas issued this year followed an earlier round of inquiries made last year into Guggenheim’s asset management division, which oversees $362bn.
That earlier inquiry focused in part on statements the company made to external parties regarding its revenue figures.
Where matters currently stand with the Guggenheim investigation remains unclear.
Separately, the FBI carried out at least one search warrant in September, seizing a mobile device. It has not been established which strand of the broader investigation this seizure was connected to.
Walter’s business interests span ownership stakes in the Los Angeles Dodgers, the Los Angeles Lakers, and Chelsea Football Club in the UK.
Group 1001, which owns both Delaware Life and Clear Spring, said it is fully cooperating with investigators and maintained that its financial position remains sound.
As of March, Delaware Life reported $69bn in assets, while Clear Spring held $16bn.
At the heart of the inquiry is whether the two insurers properly classified certain private credit investments as involving related-party transactions.
Following the subpoenas, both companies launched internal reviews and uncovered reporting errors, prompting disclosures that revealed deeper financial ties to other Walter-controlled entities than had previously been disclosed.
Delaware Life, in particular, disclosed an additional $16bn in private credit assets connected to affiliated entities beyond what had been reported earlier.
The filings do not specify precisely when Delaware Life and Clear Spring first began making the private credit investments now under scrutiny, though the holdings are known to stretch back more than two years.
