US probes Mark Walter's insurance and real estate deals

Federal prosecutors and securities regulators are conducting a wide-ranging investigation into the financial empire of billionaire investor Mark Walter, whose holdings include the Los Angeles Lakers, the Los Angeles Dodgers, and a stake in Premier League club Chelsea. The inquiries, which began last year, focus on potential disclosure failures involving private credit investments at two insurance companies he controls and specific real estate transactions.

According to people familiar with the matter, the investigation initially centered on the asset management business of Guggenheim Partners LLC, where Walter is CEO, before expanding to include Delaware Life Insurance Co. and Clear Spring Life and Annuity Co. In February, both insurers received grand jury subpoenas from the U.S. Attorney’s Office for the Southern District of New York. The Securities and Exchange Commission has also launched a parallel civil probe.

Investigators are examining whether the insurance companies adequately disclosed that billions of dollars in private credit investments were tied to other businesses within Walter’s corporate network. Such related-party transactions are not illegal but require full...