The US Department of Justice and the SEC are investigating billionaire Mark Walter over undisclosed loans totaling up to USD 20 billion between his insurance companies and affiliated firms. Argentine financiers Juan Ball and Federico Hermida appear in the case, linked to Peter Thiel's Buenos Aires mansion.

A Scandal That Shakes the Walter Empire

The US Department of Justice and the Securities and Exchange Commission (SEC) are investigating Mark Walter, CEO of Guggenheim Partners (which manages over USD 300 billion in assets) and leader of the holding company TWG Global, owner of Cadillac F1, the Los Angeles Dodgers, and until recently, the Los Angeles Lakers of the NBA.

According to The Wall Street Journal, the probe focuses on operations of the insurance companies Delaware Life, Clear Spring, and EquiTrust, controlled by Walter. An internal review found between USD 16 billion and 20 billion in loans not disclosed to Delaware regulators, raising red flags.

What is under investigation? The scheme involves loans from insurance companies to affiliated firms through a network of intermediaries. Regulators allow these loans as long as they are reported and do not exceed certain limits. Walter and his employees have handed over their electronic devices following a federal request.

The Role of Argentine Financiers

In the middle of this web is ABS Capital Company LLC (ABS Capco), a firm founded by former Argentine executives of Guggenheim Partners. This year, EquiTrust lent USD 500 million to ten companies created by Federico Hermida, an ABS executive.

Another key name is Juan Ball, co-chairman of ABS Capital Company, former co-chairman of Guggenheim Partners Latin America, and former executive at Lehman Brothers and Bear Stearns. In 2017, Bloomberg reported that the SEC was reviewing his ties to Guggenheim over transactions worth nearly USD 1 billion, including a USD 100 million loan backed by 17 LLCs.

Ball was the owner of the Barrio Parque mansion later purchased by tech magnate Peter Thiel for USD 12 million. He also partnered with Walter to jointly buy a residence in Malibu valued at USD 85 million.

Background and Record Lakers Sale

This is not Walter's first time under scrutiny. In 2016, a Guggenheim compliance lawyer flagged personal investments by Walter financed through ABS Capco. The SEC closed that investigation in 2019, but new findings have reopened it.

Last week, Walter agreed to sell the Los Angeles Lakers to Bob Iger (CEO of Disney) and Josh Kushner for USD 12.5 billion, a record for a sports franchise, less than a year after buying it. He is also exploring selling his stake in Chelsea FC.

AssetDetail
Guggenheim PartnersUSD 305 billion in assets under management
Los Angeles DodgersOwner since 2012
Los Angeles LakersSold for USD 12.5 billion (2026)
Chelsea FCIn talks to sell his stake
Cadillac F1Formula 1 team, zero points in 2026

Ripples in Formula 1

The investigation could impact Cadillac F1, which debuted this year in the top tier of motorsport. The team faces its first corporate scandal with the arrival of Martin Budkowski as director. TWG Global denied any wrongdoing: “We have always acted in good faith,” a spokesperson said.

So far, there are no criminal charges or civil penalties. The NBA will need to assess whether the investigation affects approval of the Lakers sale.

Sources: The Wall Street Journal, Bloomberg, Infobae, BAE Negocios, El Destape. This article is based on public reports; all figures and dates are as published.