Mark Walter's holding company, TWG Global, has stated that there has been no fraud in its dealings. This declaration comes as federal investigators scrutinize how two insurers, Delaware Life Insurance Co. and Clear Spring Life and Annuity, both ultimately controlled by Walter, classified approximately $20 billion in loans to other companies within his business empire. The probes by the U.S. Attorney's Office for the Southern District of New York and the Securities and Exchange Commission are focusing on these classifications, particularly whether they were properly disclosed as affiliated or related-party transactions.
The investigations have revealed that after receiving a grand jury subpoena in February, Delaware Life Insurance Co. conducted an internal review and reclassified over $16 billion of its loans as affiliated or related-party. This restatement increased the proportion of such loans to 40% of its invested assets as of December 31, significantly up from the 3% originally stated in its audited 2025 financials. While lending to affiliates is not illegal, such transactions require disclosure and typically face heightened regulatory scrutiny due to potential conflicts of interest.
In response to these developments, TWG Global recently announced an agreement to buy up to $6.5 billion in assets from Delaware Life Insurance Co. This arrangement involves TWG Global taking on investments tied to affiliated entities, while the insurers receive an equal amount of nonaffiliated assets. Additionally, TWG Global has hired David Markowitz, a veteran Goldman Sachs lawyer known for his role in resolving the 1MDB corruption scandal, as its chief legal officer, a move that Walter stated would strengthen the company's legal framework. Walter has not been charged with wrongdoing in the ongoing insurance probe.
