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The Wall Street Journal: SEC investigating Guggenheim’s asset-management unit

U.S. securities regulators have opened an investigation into Guggenheim Partners LLC’s asset-management arm that incorporates questions on an $85 million house in Malibu, Calif., co-owned by Guggenheim Chief Executive Mark Walter, in keeping with folks familiar with the topic.

The Securities and Exchange Commission, 3 of these folks stated, has shown passion in that real-estate transaction and a sequence of other deals involving ABS Capital Co. LLC, a Miami company owned by two former Guggenheim managers. ABS Capital and Walter co-invested in the Malibu property, spokesmen for ABS and Walter stated closing fall. A Guggenheim spokesman stated in October that the real-estate deals weren’t funded by Guggenheim Partners.

The SEC’s enforcement workforce has requested Guggenheim to retain paperwork related to certain transactions, including some with ABS Capital, two of these folks stated. And up to now month, they've subpoenaed paperwork and other knowledge from ABS Capital, in keeping with every other person familiar with the topic.

An SEC spokesman declined to comment; A spokesman for ABS stated on Sunday it owns the two Palisades houses in addition to the Malibu property and that it hasn’t borrowed any cash from Guggenheim. Guggenheim, which hasn’t been accused of any wrongdoing, is cooperating with the SEC probe, one person stated.

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