Dodgers majority owner Mark Walter faces simultaneous investigations by the Department of Justice, the Securities and Exchange Commission (SEC) and Delaware insurance regulators. The probes center on allegations that up to $21 billion was funneled from insurance portfolios into loans benefiting companies Walter also controls, the Los Angeles Times reported Saturday, Sept. 5.

No charges have been filed. TWG Global, Walter's holding company, said it is cooperating with all three inquiries.

The probes focus on two insurers Walter controls: Delaware Life and Clear Spring Life and Annuity, both part of TWG's Group 1001 Life & Annuity. According to the Times' earlier reporting, both companies received federal grand jury subpoenas in February. Internal reviews that followed found $21 billion in loans that should have been recorded as related-party transactions. Those loans had originally been reported at between $1 billion and $1.4 billion.

The reclassification pushed affiliated investments from 2% of one insurer's portfolio to roughly 40%, according to Fitch Ratings, as cited by the Times. In June regulatory filings, each insurer labeled the restatements "corrections of errors." Authorities have seized Walter's cellphone and laptop, Bloomberg reported, according to the Times.

Andrew Granato, a University of Texas at Austin law professor specializing in corporate finance and insurance, told the Times the gap between reported and actual loan totals was alarming.

"It also doesn't inspire very much confidence in the system of insurance regulation we have, that there could be this big of a mess that was not caught for years," Granato said.

TWG Global has denied wrongdoing. In an Aug. 26 statement, the company said no insurance policyholder had been harmed and called reports of fraud inaccurate. TWG described the criticism as driven by unnamed sources and self-serving interests.

Delaware Life has begun a remediation plan to restructure some loans and address what filings called "control deficiencies." The company aims to complete the plan by the end of 2026. Fitch, AM Best and S&P Global all downgraded the insurers' outlooks to negative.

Walter, 66, assembled the ownership group that bought the Dodgers in March 2012 for $2.15 billion, then a record. Part of the purchase money came from insurers he controlled, a deal state regulators cleared at the time. Since then the team has won three World Series, finished first in the National League West 12 times in 14 seasons and signed seven players to contracts worth more than $2 billion combined over the past six years.

The Dodgers are on pace to draw more than 4 million fans for a second straight season.

Walter sold his controlling stake in the Los Angeles Lakers at a $12.5 billion valuation to former Disney CEO Bob Iger and venture capitalist Joshua Kushner roughly 14 months after buying in at $10 billion. TWG said the sale was not forced by the investigations.

Dodgers president Stan Kasten told the Times that Walter's sports holdings will remain intact. "I can't tell you how important the Dodgers are to him," Kasten said of Walter. On Aug. 21, Kasten told reporters the team is not for sale and said he believed reports about Walter's dealings were being mischaracterized.

Walter is also exploring a sale of his 12.8% stake in English soccer club Chelsea to Santa Monica-based Clearlake Capital, according to the Times. A source close to Walter told the paper he has no desire to sell the Dodgers, the WNBA's Los Angeles Sparks or his other sports holdings.

Former U.S. attorney Jacob Frenkel told the Times that if prosecutors find criminal conduct, mail or wire fraud charges carrying up to 20 years in prison could follow. He noted the investigation could also result in no action and said the process could stretch into January 2028.