To Probe Mark Walter’s Business, DOJ Sought Egan-Jones’ Records

August 21, 2026 - 01:44

Federal investigators have quietly reached into the credit rating world as part of a broader look at billionaire Mark Walter's business operations. The Justice Department requested records from Egan-Jones Ratings Co., a small but influential firm that has issued ratings for a significant portion of the bonds held by Walter's insurance companies.

According to industry records, Egan-Jones was the sole rating agency for more than one in five of the fixed-income assets held by Walter's insurers. That reliance is unusual in the insurance sector, where most carriers seek ratings from at least two major agencies like Moody's or S&P. The DOJ's request, which has not been previously reported, signals that investigators are examining not just the investments themselves but also how those assets were evaluated.

Walter, who controls the Los Angeles Dodgers and a sprawling financial empire, has built his insurance holdings into a major player in the municipal and corporate bond markets. Egan-Jones, known for its smaller size and faster turnaround times, has carved out a niche by offering ratings on complex or thinly traded securities that larger agencies often avoid.

The subpoena does not accuse Walter or Egan-Jones of wrongdoing. It is part of a civil or criminal inquiry that remains in its early stages. Legal experts say the DOJ's interest in a rating agency suggests prosecutors are tracing the chain of decisions that led to specific bond purchases, possibly to determine whether investors were misled about the quality of those assets.

Egan-Jones has faced regulatory scrutiny before. In 2013, the SEC sanctioned the firm for failing to maintain proper internal controls and for issuing ratings without adequate documentation. The company settled without admitting or denying the findings.

Walter's representatives have not commented on the subpoena. The DOJ has declined to confirm or deny the existence of an investigation. The request for Egan-Jones records is just one piece of a larger puzzle that could take months or years to resolve, but it marks a notable step in a probe that has so far stayed out of the public eye.