It’s nothing like the Wilpons losing their shirt as part of the Bernie Madoff scandal.
To date, based on published reporting, this is a scenario where Business A (owned by Mark Walter), wants to borrow money.
Instead of going to Chase or any other lender where they will be charged, for example, 10% interest with 5 years to repay the amount. Business A instead goes to Insurance Company A aLeo owned by Mark Walter. Insurance Company A makes the same loan but at, for example, 3% interest and 20 years to pay.
The investigation has nothing to do with Business A getting loans, or Business A getting loans from insurance companies. All of that is fine.
What is being investigated is that Insurance Company A concealed that Business A who took out a loan at cut rate terms was owned by the same people as Insurance Company A. Obviously, loaning insurance company money at favorable terms to a related business is unfair to policy holders of the insurance company. The question being investigated is whether that concealment violates the law.
And that is probably an over simplification, but hopefully provides a little more rationality than “the Dodgers cheat”.