CHARLOTTE, N.C. — A prominent figure in the insurance industry, known for his substantial political contributions in North Carolina, has been taken into federal custody after admitting guilt in a significant fraud case. Prosecutors have characterized this as a $2 billion scheme designed to deceive insurance regulators, policyholders, and various stakeholders, with the individual diverting funds from multiple companies for personal gain.
Greg E. Lindberg, 54, originally from Durham, North Carolina, but currently residing in Tampa, Florida, appeared in court on Tuesday before U.S. Magistrate Judge David Keesler. He entered a guilty plea to one count of conspiracy to commit offenses against the United States and another count relating to conspiracy to commit money laundering, as outlined in legal documentation.
Lindberg had previously faced a total of 13 charges, which were brought against him in February 2023. Based on the charges, he could be sentenced to a maximum of 10 years for the money laundering conspiracy charge and up to five years for the other. This information comes from a news release from the U.S. Department of Justice.
Awaiting sentencing for an earlier conviction involving bribery, Lindberg and a business associate were found guilty by a federal jury in May of attempting to bribe North Carolina’s elected insurance commissioner for favorable treatment regarding regulatory matters. The two had previously faced convictions on similar counts in 2020; however, a federal appeals court overturned those verdicts, necessitating new trials.
According to a document co-signed by Lindberg and government prosecutors that provided the factual basis for his plea, he and others were involved in criminal activities related to the insurance sector, wire fraud, and investment advisory fraud from at least 2016 to 2019. His actions included misleading state regulators, sidestepping regulatory demands, obscuring the financial status of his companies, and misappropriating insurance funds for personal use, as stated in the release.
The investigation revealed that Lindberg’s companies funneled over $2 billion into loans and investments with affiliates, while he and his co-conspirators worked to launder the proceeds of their fraudulent activities. Allegations from the 2023 indictment claimed that Lindberg personally benefited by writing off more than $125 million in loans he had taken from the insurance companies he managed.
“Lindberg constructed a complex network of insurance companies and related businesses, exploiting them to engage in millions of dollars’ worth of circular financial transactions. His conduct has inflicted damage on thousands of policyholders, misled regulatory bodies, and posed serious risks to the insurance sector,” stated U.S. Attorney Dena J. King for the Western District of North Carolina. The investigation also involved the FBI and the U.S. Securities and Exchange Commission.
As of now, there has been no response to queries sent on Wednesday regarding Lindberg’s plea, directed to both his attorney and a website linked to his wellness and leadership pursuits. A date for sentencing has yet to be established. Lindberg, who surrendered to U.S. marshals on Tuesday, has requested to be placed in a halfway house in Tampa ahead of his sentencing, with a subsequent hearing scheduled for next week. Following his bribery conviction in 2020, a judge had previously sentenced him to over seven years behind bars.
Lindberg has a notable history as a financial contributor, donating more than $5 million to various state and federal candidates since 2016, primarily favoring Republican candidates, though he has also contributed to Democrats.
The U.S. Justice Department also noted that one of Lindberg’s senior executives is pending sentencing after admitting guilt in late 2022 for conspiring with Lindberg and others to defraud the government in a scheme involving the transfer of funds between the insurance companies and other businesses controlled by Lindberg.