Mark Walter Faces Fraud Suit Over $17 Billion in Annuity Funds as Federal Probe Was Allegedly Hidden
Updated
Updated · The New York Times · Sep 18
Mark Walter Faces Fraud Suit Over $17 Billion in Annuity Funds as Federal Probe Was Allegedly Hidden
3 articles · Updated · The New York Times · Sep 18
Summary
A proposed class action says Mark Walter and four affiliated firms sold annuities without telling buyers they were already under federal criminal and SEC investigation, costing customers a penalty-free exit.
The complaint alleges Delaware Life and Clear Spring said only 3% of assets were tied to affiliates while actually routing 42%—nearly $17 billion—into Walter-linked companies across his broader business network.
Florida policyholder Ira Rosner says the insurers received grand jury subpoenas in February, sold him a policy in April, and disclosed the probe only in June after his late-May refund window had expired.
Rosner seeks to represent hundreds of thousands of mostly senior policyholders, alleging fraud, negligent misrepresentation, breach of contract and civil conspiracy tied to annuities marketed as backed by insurer financial strength.
The suit adds to long-running scrutiny of Walter’s insurance empire, whose funds allegedly helped finance deals including the Dodgers in 2012 and the Lakers, which he agreed to sell in August for $12.5 billion.