Billions of dollars in short-term loans made to affiliates by Mark Walter’s insurance companies were due to mature by the end of August, raising concerns about a potential funding squeeze on the Dodgers owner. Federal investigators are probing whether Walter-controlled insurers improperly funded his other businesses through affiliated lending, with over a third of their assets reclassified as connected to him. Nearly all of the $5.2 billion in short-term loans made last year went to affiliates, a highly unusual practice in the insurance industry, where short-term investments typically represent less than 1% of assets.

Walter’s Delaware Life held 8.6% and Clear Spring nearly 14% of investments in short-term loans at the end of 2025, far above industry norms. Many loans flowed to obscure LLCs linked to TWG Global executives and Dodgers co-owner Bobby Patton, whose companies owed around $180 million. TWG Global plans to cut most affiliated investments by end of 2026 and maintains its investments are in performing real assets with no fraud.

The Justice Department is focusing on entities like Hudson Trading and ABS Capital, which helped set up the lending vehicles. One loan of $140 million from Delaware Life came due in May.