A review of primary source documents “identified a series of investments and loans linking” EquiTrust — the life insurer Basketball HOFer MAGIC JOHNSON purchased from Guggenheim — to “Johnson’s infrastructure funds and his Dodgers ownership stake,” according to Jean-Jacques, Termine, & Koppelman of HUNTERBROOK. Last year, as prosecutors began their probe of Dodgers owner MARK WALTER, EquiTrust was “sold to another insurance group connected to Walter: Amistad, now a focus of the DOJ’s investigation.” It is “unclear whether Johnson is still involved.” EquiTrust CEO ERIC HOLOMAN is also listed as Amistad’s “managing founder.” Holoman was previously the president of Magic Johnson Enterprises and is governor of the WNBA’s Sparks. EquiTrust’s statements, insurance statutory filings, and SEC documents reveal that “Johnson’s insurer invested in businesses tied to Johnson and Holoman.” This includes an investment of more than $100M in JLC Infrastructure, a “fund whose principals are Johnson and Holoman.” EquiTrust also holds $350M of debt “issued by the television company that has the media rights for the Dodgers.” These positions are “listed in EquiTrust’s filings as unaffiliated investments.” Jean-Jacques, Termine, & Koppelman wrote that “may be appropriate.” Regulators ultimately will need to decide, but the “stakes of an improper disclosure could be high” (HUNTERBROOK, 8/26).
