guggenheim partners

The business empire of Dodgers and Lakers owner Mark Walter reportedly is being probed by the U.S. Attorney’s Office and securities regulators over $16 billion in possibly fraudulent loans.

The loans by two Delaware life insurers that Walter owns were made to companies tied to him or his TWG Global holding company but were not disclosed as “related party” transactions as required, the Wall Street Journal reported Sunday. Related party transactions made by insurers are required to be reported to limit conflicts of interest and protect policyholders, who have an interest in the financial strength of their insurers.

Walter, 66, chief executive of Chicago investment firm Guggenheim Partners, led a group that included Todd Boehly — another Guggenheim executive — and Magic Johnson in acquiring the Dodgers for $2.15 billion in 2012, a record for a pro sports team at the time. Last year, Walter and TWG acquired a controlling stake in the Lakers at a $10 billion valuation, a new record. Walter also owns the Chelsea soccer team in the English Premier League.

Last week, the financial and sports mogul celebrated the Dodgers’ World Series victory at the White House. It was the second time in two years, following back-to-back World Series wins.

The majority of the money used to buy the Dodgers — more than $1 billion — came from insurance companies managed by Guggenheim Partners and controlled by Walter, the Times has reported.

A number of state insurance regulators investigated the purchase in 2014 and found no irregularities, the Wall Street Journal reported in 2020.

Guggenheim Partners got into the insurance business after America’s 2008 financial crisis, spotting investment opportunities. Walter figured he could increase the returns insurers got on their typical purchases of corporate bonds by connecting them to his deal pipeline, according to the Wall Street Journal, which found that five insurers had provided more than $10 billion in deal funding over the years.

The current probe began after an internal whistleblower filed a complaint questioning the way Walter’s asset-management firm, Guggenheim Investments, booked revenue associated with insurers, the Journal reported this week, and FBI agents seized at least one cellphone related to that probe.

The investigation then spread to examining $16 billion in loans, which were passed through a third party before being received by the companies tied to Walter or TWG, the Journal reported, adding that authorities are trying to determine whether that amounted to fraud, citing an unnamed source.

The insurers, Delaware Life Insurance and its affiliate Clear Spring Life and Annuity, disclosed the investigations in June regulatory filings. Delaware Life, which earlier had stated affiliated investments amounted to only about $1 billion, or 3% of its portfolio, increased that number to $16 billion.

Delaware Life executives told one credit rating firm they were unaware the loans were made to entities tied to Walter, the Journal reported. The companies said they received grand jury subpoenas in February related to an investigation by federal prosecutors in the Southern District of New York and that the Securities and Exchange Commission also is conducting a parallel investigation.

Investigations conducted by prosecutors and securities regulators often result in no action.

The Dodgers, TWG and Guggenheim did not immediately respond to messages for comment.

A TWG spokesperson told the Journal that “Mark Walter and TWG have always acted in good faith,” are cooperating with authorities and are “confident these matters will be resolved favorably.”

After conducting an internal investigation, Delaware Life said it would restructure some related-party loans, address its internal control deficiencies and moderate its business plan, according to S&P Global. While the ratings agency is maintaining its “A-” financial strength and credit ratings of Delaware Life, it reduced its outlook to “negative” because of possible higher credit risk following changes to the insurer’s portfolio.

“In addition, such outcomes could weaken Delaware Life’s regulatory relationships and damage its reputation, which could erode its competitive position,” S&P said.

“Our capital position and liquidity remain strong, and our financial strength ratings are unchanged,” Group 1001, the insurers’ parent company, said in a statement.

“We remain focused on delivering exceptional value and service to our contract and policyholders and their financial representatives,” the statement added.

Bloomberg News contributed to this report.

The Dodgers’ decision to deny U.S. Customs and Border Protection agents access to Dodger Stadium wasn’t the way the team intended to first address the surge of federal immigration enforcement a year ago.

Pressed by religious, labor and community leaders to take a stand, the Dodgers had prepared a response to Immigration and Customs Enforcement and Border Patrol raids that triggered widespread protests — only to shelve the announcement as the team went public with their refusal to let federal agents onto stadium grounds. A day later, on June 20, the Dodgers unveiled their plan, centered on $1 million “toward direct financial assistance for families of immigrants impacted by recent events in the region.”

In total, the Dodgers donated $1.1 million, representatives for California Community Foundation and Labor Community Services — the two nonprofits that received the funds — told The Times.

“The Dodgers have been in L.A. for 68 years,” said Joseph Tomás McKellar, executive director of PICO California. “They’re beloved among immigrant communities in a way that no other sports team is. That gives the Dodgers cultural and financial power in the region. We applaud what they did, but they could do even more by exercising leadership.”

PICO California, the state’s largest faith-based organizing network, was behind a petition delivered to the Dodgers, the contents of which were largely addressed by the team’s $1-million commitment. But as the last of the money flowed to immigrant families in need in late August, another petition circulated that demanded Dodgers owner Mark Walter sell his “company’s stake in ICE jails and deportation flights.”

Walter’s massive investment firm, Guggenheim Partners, owned more than a million shares of GEO Group, valued at nearly $12 million. By the end of 2025, Guggenheim’s interest in GEO Group had fallen to around 10,000 shares. And by the end of March of this year, Guggenheim no longer owned any shares of the prison company that also assisted in the deportation of immigrants, according to SEC filings reviewed by The Times.

Walter also faced criticism over the partnership announced last year between Palantir Technologies and TWG Global — of which Walter is chairman and chief executive officer. Palantir provides AI and analytics software to ICE, tools the American Civil Liberties Union said “form the backbone for ICE’s mass deportation regime.”

There are no indicators as to why Guggenheim Partners divested from GEO Group. The Dodgers declined comment. Guggenheim Partners did not respond to The Times’ request for comment. GEO Group referred questions to Guggenheim Partners.

In January, Coalition for Humane Immigrant Rights, or CHIRLA, filed a federal lawsuit against federal officials over the condition of the Adelanto ICE Processing Center in San Bernardino County, a facility operated by GEO Group. In the complaint, CHIRLA alleged “detained individuals face dangerous conditions and pervasive abuses — disease and illness are rampant, mold grows on the walls, and detained individuals are denied sufficient food, clean drinking water, proper medical care, and disability accommodations.”

Donald Trump’s reelection has been a major driver of profits for GEO Group. GEO Group founder, chairman and chief executive George Zoley said in a May earnings call the company was “awarded new or expanded contracts that represent up to approximately $520 million in new incremental annual revenues, which represents the largest amount of new business we have won in the single year in our company’s history.” Former GEO Group exec David Venturella is the acting director of ICE.

“It’s really good to know [of the Guggenheim divestment],” said Rabbi Susan Goldberg, a longtime immigrants rights activist and founder of Nefesh, a Jewish spiritual community in Echo Park. “We showed up so often at its [regional] headquarters in Culver City that they moved. We don’t know where they are located in the area now.”

The California Community Foundation received $1 million, which worked with Los Angeles city officials to distribute $1,000 in direct relief to 1,000 households impacted by the immigration raids. The money was distributed through cash cards, according to the foundation. The Dodgers’ gift amounts to a quarter of the $4 million the foundation has raised for its Los Angeles Neighbors Support Fund, $3.3 million of which has been “deployed to impacted communities with new investments continuing to roll out,” according to the nonprofit.

The Dodgers also donated $100,000 to Labor Community Services, a partner of the Los Angeles County Federation of Labor, that provided more than 4,000 families with food assistance with the team’s donation.

“The Dodgers’ generous donation has enabled us to reach and assist more families throughout Los Angeles County with dignity and compassion, providing critical food assistance at a time when it is needed most,” Labor Community Services Executive Director Norma López said in a statement to The Times.

A spokesperson for Labor Community Services said no other pro sports team outside the Dodgers made a similar donation to help impacted immigrant families.

“The Dodgers have a unique responsibility and they are an example of something we want to continue to see, especially as the World Cup and the Olympics come to L.A.,” said Carlos Martin Rodriguez, director of organizing for L.A. Voice, a multifaith coalition that organized several vigils and demonstrations when the raids were at their height. “I hope this wasn’t a singular moment, but the beginning of a movement.”