Prosecutors said to examine four firms in Mark Walter fraud probe

U.S. federal prosecutors are examining four companies linked to billionaire Mark Walter's business empire, according to the Wall Street Journal. The investigation centers on whether Walter or his businesses engaged in fraud by concealing financial ties while borrowing vast sums of money from insurers he controls, the report stated.

The loan funds supposedly flowed through entities controlled by the four firms under scrutiny before being channeled to other Walter-associated businesses, the report added. Walter, CEO of Guggenheim Partners, has not been charged with any crimes. The holding company TWG did not provide a comment when asked. The Securities and Exchange Commission also declined to comment on the matter.

Bloomberg News previously reported that Walter had offered to put his Guggenheim Partners equity at stake to raise billions of dollars to cover debts on its insurance companies. Walter recently sold the Los Angeles Lakers to Joshua Kushner and Bob Iger for $12.5 billion, just a year after acquiring a majority share in the team.