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US probes four businesses tied to billionaire Mark Walter
Prosecutors and the SEC are examining whether financial connections were concealed in loans involving Walter-controlled insurers
US federal prosecutors investigating billionaire Mark Walter’s business empire are focusing on four companies that served as intermediaries between insurers he controlled, The Wall Street Journal reported Sunday.
Prosecutors and the Securities and Exchange Commission are examining whether Walter or his businesses concealed financial connections while borrowing billions of dollars from the insurers, the Journal reported, citing people familiar with the matter.
Loan proceeds passed through entities reportedly controlled by the four companies before funding other Walter-linked businesses, according to the report. Walter and his companies have not been accused of crimes.
Walter’s holding company TWG did not immediately respond to Reuters, and the SEC declined to comment. Reuters said it could not independently verify the Journal’s report.
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Delaware Life Insurance Company and affiliate Clear Spring Life and Annuity Company received grand jury subpoenas in February in connection with a Southern District of New York investigation, according to a regulatory filing. The SEC was conducting a parallel investigation.
The inquiry concerns whether some private credit investments introduced to the insurers should have been classified as affiliated or related-party transactions. Delaware Life later found errors in disclosures involving certain related-party investments.
Fitch Ratings placed Delaware Life on negative watch last month after restated statements raised affiliated investments to about 40% of cash and invested assets from less than 5%.