Overview
- Federal prosecutors in Manhattan, the Securities and Exchange Commission and the FBI are investigating roughly $16 billion in private‑credit loans that were routed through third parties to entities tied to Mark Walter and his TWG Global holding company.
- Delaware Life Insurance and affiliate Clear Spring disclosed in June 2026 that they had understated affiliated investments, raising the figure from about $1 billion to roughly $16 billion and saying they will restructure some related‑party loans and fix internal control weaknesses.
- The probe began with an internal whistleblower complaint about how revenue was booked at Guggenheim Investments and expanded after federal agents executed a search warrant and seized electronic devices last September and prosecutors issued grand jury subpoenas in February.
- S&P has cut the insurers’ outlook to negative while keeping an A‑ rating, reflecting higher credit risk and potential hits to policyholder protections and the insurers’ regulatory relationships if investigators find disclosure or governance failures.
- TWG and Walter say they are cooperating and expect a favorable resolution, no criminal charges have been filed so far, and the inquiry could prompt broader scrutiny of how life insurers use private credit to finance large corporate and sports investments.