Guggenheim Investments faces a Department of Justice and SEC probe, yet claims its auditor KPMG signed off financial statements with clean opinions. However, KPMG warned senior executives about weak controls months earlier after a whistleblower complaint regarding $275mn in revenue booked by subsidiary Guggenheim Private Investments. KPMG identified a "material weakness" in how this revenue was handled but still issued unqualified opinions, permissible under standards for private companies. The whistleblower alleged "vagueness about the services to be rendered" for the nine-figure fee, which is unusually large compared to typical 0.5% management fees at firms like Blackstone. President Dina Di Lorenzo reportedly told KPMG she personally performed the advisory services, a claim Guggenheim calls "misleading and lacks context." The asset manager insists it acted "appropriately and professionally." This scrutiny extends beyond Mark Walter's insurance empire, which previously disclosed billions in misclassified loans to related entities.

Separately, United Wholesale Mortgage, owned by Phoenix Suns owner Mat Ishbia, lost $600mn on a hedge, requiring a $2bn rescue by Oaktree. Walter also agreed to sell the Los Angeles Lakers for $12.5bn.