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Mark Walter, who sold his ownership stake in the Los Angeles Lakers and may be looking to unload his shares of Chelsea Football Club, continues to cut back amid a federal investigation.
TWG Global, Walter’s holding company, said on Tuesday it had agreed to cut up to $6.5 billion of Delaware Life Insurance Co’s investments in his businesses. The billions in swaps would be related-party investments for an equivalent amount of assets classified as independent, according to Reuters.
“The Group 1001 insurance companies are working with the Delaware Department of Insurance to address the identified investments, and TWG is committed to resolving this matter to the Department’s satisfaction,” a spokesperson for TWG Global told the outlet.
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This comes as The Wall Street Journal reported U.S. federal prosecutors and the SEC are investigating Walter’s businesses to determine whether he, or his entities, committed fraud by concealing financial dealings while borrowing billions from insurers he controls.
In February, Delaware Life and Clear Spring Life and Annuity Co received grand jury subpoenas in connection to an investigation by the U.S. Attorney’s Office for the Southern District of New York.
MARK WALTER LOOKING TO UNLOAD CHELSEA STAKES DAYS AFTER SELLING LAKERS TO JOSH KUSHNER, BOB IGER: REPORT
Also, one of Wall Street’s top regulators has been conducting its own investigation, focused on whether private credit investments, which were categorized as unaffiliated investments by Delaware Life and Clear Spring Life, were in fact connected.
Delaware Life conducted its own internal investigation after received the subpoenas, where they found errors in how certain related-party investments were presented.
It was also reported earlier that the FBI recently seized Walter’s phone and laptop, as well as a high-ranking Guggenheim Investments executive’s, this past year.
While the investigations are ongoing, Walter shockingly sold his majority stake in the Lakers just one year after purchasing the team for a then-record $10 billion. He sold his majority stake to Josh Kushner and Bob Iger for a whopping $12.5 billion.
Now, Walter and his business partner, Todd Boehly, are reportedly looking to sell their shares in the English Premier League’s Chelsea Football Club, per the Financial Times. Walter and Boehly are hoping to sell their stakes to Clearlake Capital, the majority owner of one of the most popular soccer teams in the entire world.
Clearlake Capital reportedly has had some friction with the two minority stakeholders after they purchased a piece of the club four years ago. The outlet reported there have been negotiation talks for years between both sides, but no deal was made.
Some are viewing the Lakers’ sale as a quick way to liquify assets for Walter with potential legal problems ahead, and now Chelsea could be yet another way to do so.
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