Right after flipping the Los Angeles Lakers for instant cash in the most stunning franchise sale in NBA history, Mark Walter is facing a massive financial probe regarding his business empire.
According to The Wall Street Journal, federal investigators are now probing whether Walter hid financial links while borrowing billions of dollars from life insurance companies he controls.
Prosecutors have narrowed their focus to four specific businesses used as intermediaries to shift billions of dollars for Walter.
Mark Walter under probe amid illegal loan fraud allegations
Mark Walter’s insurance companies reportedly loaned $20 billion to $21 billion to other businesses he owns or controls, but these insider loans were not properly reported.
Because those billions in policyholder funds were quietly routed behind the scenes, federal prosecutors and the Securities and Exchange Commission (SEC) are investigating whether Walter committed criminal loan fraud by actively concealing where the money was going.
Investigators are focusing on four specific target companies used to pass Walter's cash around: ABS Capital, Amistad Financial, Bradford Allen, and Hudson Trading.
So far, no official criminal or civil charges have been filed against Walter, and his team is cooperating fully with the ongoing investigation.
After buying the Los Angeles Lakers in June last year for $10 billion from the Buss family, Walter stunned the sports world 14 months later after subsequently selling the franchise to Josh Kushner and Bob Iger for a record-breaking $12 billion.