Guggenheim Partners "Cooperating Fully" With SEC Probe

Josh O'Neill

16 April 2018

Guggenheim Partners said yesterday it was “cooperating fully” with a probe by the Securities and Exchange Commission , Wall Street’s main watchdog, into its asset management subsidiary.

“We are cooperating fully with the SEC’s investigation of our subsidiary,” the statement read, “and we cannot comment further".

The statement was issued after a report in the Wall Street Journal said the company was asked to retain documents related to transactions involving ABS Capital Co.

The regulator is investigating a real estate transaction and other deals involving ABS Capital, which is owned by two former Guggenheim managers, according to the Wall Street Journal.

The SEC declined to comment to Reuters, and did not immediately respond to a request for comment by Family Wealth Report as this was outside US business hours. FWR may update this item in due course.

Meanwhile, the company’s chief executive Mark Walter has been questioned over his relationship with an employee, Alexandra Court, and her promotion to a role overseeing institutional distribution. Walter claimed the two have a business relationship.

ABS Capital drew scrutiny over its purchases of one property in Malibu and another two in the Pacific Palisades as Court lives in one of the homes, according to the Wall Street Journal.