Prosecutors said to examine four firms in Mark Walter fraud probe

Investing.com -- U.S. federal prosecutors investigating billionaire Mark Walter's business empire are examining four companies that acted as intermediaries between insurance companies he controlled, the Wall Street Journal reported Sunday.

Prosecutors and the Securities and Exchange Commission are looking into whether Walter or his businesses committed fraud by hiding financial connections while borrowing billions of dollars from insurers he controls, the report said.

The loan proceeds from the insurers moved through entities reportedly controlled by the four firms under investigation before funding other Walter-linked businesses, the report said. Walter and his businesses have not been accused of any crimes.

Walter serves as CEO of Guggenheim Partners, which owns Guggenheim Securities and Guggenheim Investments.

Walter's holding company TWG did not immediately respond to a request for comment. The SEC declined to comment.

Bloomberg News reported last week that Walter offered to pledge his equity stake in Guggenheim Partners as part of an effort to raise billions of dollars to address loans on the balance sheet of its insurance companies.

Walter recently agreed to sell the Los Angeles Lakers to venture capitalist Joshua Kushner and former Disney CEO Bob Iger for $12.5 billion, just over a year after acquiring a majority stake in the NBA team.

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