Amistad Financial Group under federal scrutiny for $2B in loans to a sports mogul

Amistad Financial Group is drawing attention after reports surfaced that the firm, in which NBA legend Magic Johnson holds a minority stake, has extended more than $2 billion in loans to companies tied to billionaire sports mogul Mark Walter, who is currently under federal scrutiny over his insurance businesses. According to the Los Angeles Times, Amistad Financial Group issued about $1.26 billion directly to Walter-linked companies between March and June 2026. An additional $1.06 billion was reportedly routed through intermediaries that have previously arranged loans for Walter’s business interests, bringing the total to roughly $2.31 billion.

Johnson is a board member and minority shareholder of Amistad, but he does not serve on its three-person executive committee. The reporting indicates there is no evidence that Johnson was involved in, or aware of, the lending decisions. The matter underscores the financial and governance challenges that can arise in complex investment partnerships, especially when business interests overlap across multiple companies and industries.

Federal investigators are reportedly looking into whether Walter’s insurance companies properly disclosed more than $20 billion in loans and investments tied to other businesses associated with him. The investigations involve both the U.S. Department of Justice and the Securities and Exchange Commission.

Amistad subsidiaries EquiTrust Life Insurance Co. and Heritage Life Insurance Co. are said to have provided much of the recent financing.

Some of the loans were linked to businesses connected to Walter’s stake in used-car retailer Carvana and his investment in the Billie Jean King Cup, a women’s tennis tournament. At the same time, Walter has been working to cut down the debt owed to his own insurance companies amid concerns raised by credit rating agencies. He also agreed to sell his majority stake in the Los Angeles Lakers for $12.5 billion, a deal reported as part of his broader effort to raise capital.

Johnson and Walter have collaborated for more than a decade, building a sports investment portfolio that includes the Los Angeles Dodgers and the Los Angeles Sparks. Their partnership started with the 2012 purchase of the Dodgers for $2.15 billion and later expanded to the Sparks in 2014. Johnson has also spoken publicly about how Walter’s guidance helped him in business.

“Part of my secret sauce was to align myself with great partners like Mark Walter, and also to allow great men like him to mentor me and teach me business,” Johnson said in a 2024 interview at the Milken Institute Global Conference, according to Bloomberg Law. RELATED CONTENT: Magic Johnson’s WNBA Strategy Teaches Black Investors