Federal investigators are taking a closer look at billionaire Mark Walter's financial empire, with criminal and regulatory inquiries now spanning Guggenheim Partners and two life insurance companies under his control, according to Bloomberg.
The investigation, which began last year, initially focused on Guggenheim's $362 billion asset management business before expanding to Delaware Life Insurance Co. and Clear Spring Life and Annuity Co., according to people familiar with the matter.
Bloomberg writes that both insurers revealed in recent regulatory filings that they were served with grand jury subpoenas in February.
Prosecutors are examining whether the companies properly disclosed private credit investments tied to affiliated businesses within Walter's network. The companies also said the Justice Department's investigation is proceeding alongside a separate SEC probe.
People familiar with the matter said the FBI seized at least one mobile phone under a search warrant last September, although it isn't clear which part of the broader investigation the device was connected to. No allegations have been filed, and investigations of this type can conclude without criminal charges or civil enforcement.
Following the subpoenas, the insurers launched an internal review that identified financial reporting "errors."
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