The Securities and Exchange Commission (SEC) has opened an investigation into Guggenheim Partners’ asset management arm, which will include questions about a real estate deal for an $85 million home in Malibu, California, the Walls Street Journal reports.
The Journal, citing sources familiar with the situation, reported that the SEC has asked Guggenheim to retain documents related to transactions including the Malibu property as well as a series of other deals associated with ABS Capital, a Miami-based investment firm owned by two former Guggenheim managers Juan Ball and Pablo Stalman.
The WSJ reported that the SEC has subpoenaed documents and related information from ABS Capital too.
Guggenheim told the WSJ and Reuters that it is co-operating fully with the SEC with regards to the investigation, but declined to comment further. It has not been accused of any wrongdoing.
According to the Journal, ABS Capital and Guggenheim Partners chief executive Mark Walter bought the Malibu property in question together.
A Guggenheim spokesman told the newspaper last October that the real estate deal was not funded by Guggenheim. ABS Capital also told the Journal, through a spokesman, that the firm had not borrowed any money from Guggenheim or its clients.
Guggenheim Partners, which includes an insurance advisory division, an investment bank and an asset management arm, had total assets under management of $305 billion at the end of last year. Of this, $250 billion was from the asset management arm, according to the firm's website.
To read the WSJ story in full, click here.