Real Estate
Home›Real Estate›Industry›Federal probe targets Mark Walter-linked brokerage and…
Federal probe targets Mark Walter-linked brokerage and lenders over accounting
Prosecutors and the SEC are examining whether Walter concealed affiliated financial connections while borrowing billions from insurers he controlled, and an internal TWG review found about $20B in affiliated loans not properly disclosed.
Federal prosecutors are investigating four Mark Walter controlled entities for potential accounting issues and fraud, including a Chicago based commercial real estate brokerage with longtime ties to investment firm Guggenheim Partners, where Walter is CEO, The Wall Street Journal reported, citing anonymous sources.
The inquiry focuses on whether Walter or his companies concealed financial relationships while acting as intermediaries between insurance firms controlled by Walter and businesses also controlled by him, as the insurers lent money to those affiliated businesses.
According to the WSJ, prosecutors and the Securities and Exchange Commission are looking into the alleged concealment of connections tied to borrowing billions from Walter controlled insurers, noting there were no allegations of wrongdoing at this point.
TWG Global, Walter holding company, told the WSJ it has always acted in good faith, and said insinuations about circumventing obligations are false. After the investigation began, an internal review by TWG reportedly found roughly $20B worth of affiliated loans that had not been properly disclosed.