TWG Global denies fraud as $20B insurance probe deepens

TWG Global, the holding company behind Los Angeles Dodgers owner Mark Walter, denied fraud allegations Wednesday as federal investigators probe how two of its insurers classified more than $20 billion in related-party loans.

TWG Global denied fraud allegations Wednesday as federal investigators probe how two insurers controlled by Mark Walter classified more than $20 billion in related-party loans.

"Despite what has been reported, there has been no fraud," the company said. "There is no victim here. No one has been harmed, and no one has claimed they were harmed."

The statement was TWG's most detailed response since federal scrutiny of its insurance holdings intensified in recent weeks. TWG agreed to buy up to $6.5 billion in affiliated assets from Delaware Life Insurance Co. in exchange for unaffiliated assets, while Clear Spring Life and Annuity Co. separately cut related transactions by $90 million. Delaware Life reclassified affiliated investments to about 42 percent of invested assets, up from the 3 percent originally stated in its audited 2025 financials.

Walter has not been charged with wrongdoing, but the probes by the U.S. Attorney's Office for the Southern District of New York and the Securities and Exchange Commission could carry penalties and regulatory sanctions that threaten the billionaire's sports and financial empire.

The insurance probe

The investigations center on accounting practices at Delaware Life and Clear Spring, two Group 1001 insurers ultimately controlled by Walter, and how they labeled loans to companies that were part of his empire in regulatory filings. The insurers reclassified billions of dollars of investments as affiliated or related-party transactions after receiving grand jury subpoenas and conducting internal reviews. Lending to affiliates is not illegal, but the scale of the reclassification — a pool exceeding $20 billion, according to Bloomberg — drew federal attention.

TWG said it "is committed to working with the U.S. Department of Justice and the SEC to resolve their inquiries," and that it and its Group 1001 insurance companies "have presented a plan to address any regulatory concerns." The company characterized the criticism as orchestrated by "unnamed sources with self-serving interests," saying the attacks had been sustained over several weeks and amplified through media coverage.

The reclassification marks a sharp reversal from the insurers' earlier disclosures. Delaware Life's affiliated investments jumped to roughly 42 percent of invested assets from the 3 percent originally reported — a swing that, if regulators find the initial labels were misleading, could expose the companies to fines and force further unwinding of related-party positions.

Lakers sale and legal hires

TWG also disputed suggestions that it was being forced to offload sports holdings to shore up its insurance operations. Regarding the recently announced Lakers sale, TWG said Walter "was approached by Josh Kushner and his team about this transaction and the agreement represents a 25 percent premium to the price paid by Mr. Walter less than a year ago." The deal valued the basketball team at $12.5 billion. On the Dodgers, the company was direct: "the team is not being sold and no sale process has been initiated."

The scrutiny has prompted legal reinforcements. TWG tapped veteran Goldman Sachs lawyer David Markowitz as chief legal officer, a hire that came nearly two weeks after Walter agreed to sell his controlling stake in the Lakers to Kushner and Bob Iger. Markowitz, while at Goldman, was part of the team that negotiated settlements worth billions of dollars to resolve the 1MDB corruption scandal, in which the bank was accused of violating the Foreign Corrupt Practices Act.

Walter's sports interests extend well beyond the Lakers and Dodgers — he holds stakes in Chelsea Football Club, the Professional Women's Hockey League, and the Cadillac Formula 1 Team. The probes are still in their early stages, and Walter has not been charged. But the parallel criminal and civil investigations, and the company's decision to preemptively unwind $6.5 billion in affiliated assets, suggest regulators are pressing for structural change. Any settlement or enforcement action would likely require TWG to further separate its insurance operations from Walter's other holdings — a process that could take quarters and carry costs that ripple through the billionaire's portfolio.

This article is for informational purposes only and does not constitute investment advice.