TWG Global hires Goldman veteran as insurers face $20B loan probe

TWG Global hired Goldman veteran David Markowitz as chief legal officer as federal investigators probe $20 billion in insurer loans to Walter's companies.

"His deep legal experience and proven leadership will be invaluable as we continue to strengthen the legal framework that supports our growth," Walter, who also owns the Los Angeles Dodgers, said in a statement Monday.

Markowitz joined Goldman in 2011 and most recently served as global co-head of litigation and regulatory proceedings, where he helped negotiate multibillion-dollar settlements resolving the 1MDB corruption scandal. He previously spent eight years in the SEC's enforcement division and held senior roles at the New York Attorney General's Office. The U.S. Attorney's Office for the Southern District of New York and the SEC are examining how Delaware Life Insurance and Clear Spring Life and Annuity, two Group 1001 insurers Walter controls, labeled about $20 billion in loans to his companies in regulatory filings. Delaware Life, after receiving grand jury subpoenas, reclassified its audited 2025 financials to show affiliated investments at about 42 percent of invested assets, up from the 3 percent originally stated. Walter has not been charged with wrongdoing.

TWG last week agreed to exchange up to $6.5 billion of affiliated investments held by Delaware Life for an equal amount of non-affiliated assets. The hire comes nearly two weeks after Walter agreed to sell his controlling stake in the Los Angeles Lakers to Joshua Kushner and Bob Iger in a deal valuing the team at $12.5 billion.

Markowitz said he has long admired TWG Global's position across financial services, insurance, artificial intelligence, technology, sports and media, and looks forward to helping grow the company's legal structure. The probes mark an escalation of scrutiny that began last September, when federal agents seized Walter's phone and laptop, along with the phone of Guggenheim Partners president Dina DiLorenzo. Lending to affiliates is not illegal, but regulators restrict such investments because they lack independence and can be hard to liquidate in a crisis.

The scrutiny has rippled through Walter's empire. Guggenheim Partners, which Walter co-founded and leads, reported second-quarter revenue down 38 percent from a year earlier. A $1.18 billion loan tied to Guggenheim maturing in 2031 fell to 72 cents on the dollar this week, reflecting investor concern over the insurer's finances. Short seller Hunterbrook Media on Aug. 16 alleged that Sammons Financial, which manages $147 billion in assets, concealed hundreds of millions of dollars in affiliated investments tied to Walter; Sammons' public bonds fell after the report.

The reclassification and asset swap show regulators are scrutinizing how private-equity owners use insurer premiums for affiliated investments, a practice that has grown as firms including Walter's control about $1.1 trillion of U.S. life insurance assets. Investors will watch for Delaware Life's financial remediation plan, which is not expected until at least year-end.

This article is for informational purposes only and does not constitute investment advice.