Mark Walter investigation takes another turn after Lakers sale

The federal investigation surrounding Mark Walter’s business empire is getting more specific.

According to The Wall Street Journal, prosecutors and the Securities and Exchange Commission have narrowed their focus to four entities that allegedly served as intermediaries between insurance companies Walter controlled and businesses connected to him.

The entities identified by the Journal are ABS Capital, Amistad Financial, Bradford Allen and Hudson Trading.

Investigators are examining whether Walter or companies tied to him committed fraud by concealing financial relationships while borrowing billions of dollars from insurers he controlled.

That does not mean Walter has been charged with a crime. He hasn’t. An investigation also doesn’t guarantee charges will ever be filed.

Still, the timing remains impossible to ignore from an NBA standpoint.

Walter agreed last week to sell his controlling stake in the Lakers to Josh Kushner and Bob Iger at a valuation of $12.5 billion, barely a year after agreeing to buy the franchise from the Buss family at a $10 billion valuation.

Now comes another wrinkle. The Journal reports that selling the Lakers frees up assets and collateral Walter had pledged to finance his original purchase, potentially helping his companies move more quickly toward satisfying insurance regulators.

Importantly, the Journal also reports that the Lakers sale was not originally part of Walter’s plan to address those regulatory concerns. His group continues to pursue other fundraising options.

So we still shouldn’t make a leap that the Lakers were sold because of the investigation. But the picture is getting clearer.

Federal agents previously seized Walter’s phone and laptop under a court-authorized warrant. Investigators have been scrutinizing billions in transactions involving Walter-controlled insurers. Prosecutors have now reportedly zeroed in on specific intermediary companies.

Meanwhile, Walter is selling the Lakers almost immediately after buying them. Maybe those are separate tracks. But as we wrote last week, it remains one heck of a timeline.