Dodgers and Lakers owner dragged into shocking $16B federal loan fraud investigation

An employee who raised red flags over suspicious revenue booking is behind what sparked a massive federal investigation into billionaire sports mogul Mark Walter.US prosecutors are probing the owner of the Los Angeles Lakers and Dodgers, after receiving information billions of dollars in profits had allegedly ended up in his insurance companies’ accounts.It’s since been revealed the informant who tipped authorities off about the matter was reportedly one of Walter’s own employees, acting as a whistleblower.The US Attorney’s Office in Manhattan, alongside the Securities and Exchange Commission, are investigating how about $16 billion in loans for Walter’s conglomerate TWG Global were channeled through a third party before dropping onto his insurance companies’ balance sheets, according to the Wall Street Journal.Sign up to get the best stories straight to your inbox.

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Want even more news? Investigators are working to determine whether Walter or his company has committed any fraud.But TWG Global denies any wrongdoing, with a spokesperson saying Walter and the company have “always acted in good faith”.“Those who have done business with Mark know him as honest and straightforward.Nothing about these transactions was any different,” the spokesperson said.“We are confident these matters will be resolved favorably.”TWG Global is cooperating with authorities on the investigation, which was disclosed by Walter’s insurers in June regulatory filings.

The investigation comes amid a regulator crackdown on private lenders granting loans to businesses, which has become a massive pain point for banks.Life insurance companies, such as the ones Walter runs, are bankrolling the private credit industry.Walter, who has an estimated net-worth of $7.3 billion according to Forbes, has become a prominent figure i...