Former Insurance Executive Indicted for $2B Fraud Scheme | OPA
A federal grand jury in Charlotte returned an indictment yesterday charging a North Carolina gentleman with masterminding and directing a enormous scheme to deceive condition insurance coverage regulators and defraud countless numbers of policyholders and other individuals in relationship with insurance policies companies he managed.
According to court documents, from no afterwards than 2016 by means of at minimum 2019, Greg E. Lindberg, 53, of Durham, and others allegedly agreed to defraud many insurance policies businesses, other third parties, and in the long run, countless numbers of insurance policyholders. Lindberg allegedly deceived the North Carolina Office of Coverage and other regulators, evaded regulatory requirements meant to safeguard policyholders, hid the legitimate financial affliction of his insurance companies, and improperly utilized insurance policy firm funds for his particular profit. In specific, the indictment alleges that Lindberg personally benefitted from the fraud in aspect by utilizing insurance policies organization money to finance his lavish lifestyle, together with the buy and refinancing of own actual estate and “forgiving” a lot more than $125 million in loans from his affiliated organizations to himself.
“Policyholders depend on insurance plan corporation owners to abide by the regulations so that the gains they should have and count on will be available when required,” mentioned Assistant Lawyer Basic Kenneth A. Polite, Jr. of the Justice Department’s Felony Division. “In this alleged $2 billion scheme, the defendant defrauded regulators and policyholders alike, causing considerable financial harm to thousands of victims. As this prosecution demonstrates, no make any difference how sophisticated the plan, the office will maintain accountable corporate executives whose crimes leave policyholders holding the bag although lining their possess pockets.”
The billed carry out allegedly induced significant economical hardship to the victims. Lindberg allegedly triggered the insurance plan corporations to engage in investments of practically $2 billion as section of his plan, most of which remained excellent as of September 2022. Considering the fact that 2019, many coverage firms controlled by Lindberg have been placed into rehabilitation or liquidation.
“The indictment reveals a thoroughly orchestrated plan that relied on a internet of elaborate monetary investments and transactions created to evade regulators, disguise the money wellbeing of Lindberg’s coverage firms, and conceal the alleged goal of the scheme: Lindberg’s personalized attain,” mentioned U.S. Attorney Dena J. King for the Western District of North Carolina. “My office will carry on to perform with our law enforcement associates to examine and prosecute economic wrongdoing and maintain perpetrators accountable for their actions.”
“People acquire insurance policy solutions to supply consolation and safety. However, this indictment alleges this was a subtle and intricate scheme made for a single rationale, to reward Lindberg,” claimed Performing Particular Agent in Demand Michael C. Scherck of the FBI Charlotte Area Office. “The FBI is unwavering in our attempts to hold those accountable who dedicate federal economic crimes.”
Lindberg is billed with one depend of conspiracy to commit crimes in relationship with insurance policy small business, wire fraud, and investment adviser fraud one particular depend of wire fraud four counts of bogus insurance policy enterprise statements introduced to regulators 6 counts of bogus entries about the fiscal problem or solvency of an insurance small business and just one rely of money laundering conspiracy. If convicted, he faces a most penalty of 20 yrs in jail on each and every of the top counts.
In December 2022, 1 of Lindberg’s leading executives, Christopher Herwig, pleaded responsible in a connected scenario to conspiring with Lindberg and other individuals to dedicate wire fraud, financial commitment advisor fraud, and cash laundering, as nicely as to the producing of fake statements in the organization of insurance plan.
Independently, Lindberg remains under indictment and is awaiting retrial in a circumstance in which he faces many expenses stemming from alleged attempts to bribe the Commissioner of the North Carolina Office of Insurance coverage.
The FBI Charlotte Subject Business is investigating the scenario.
Assistant U.S. Lawyer Daniel Ryan for the Western District of North Carolina and Demo Lawyer Lyndie Freeman of the Criminal Division’s Fraud Area are prosecuting the circumstance.
If you think you are a target in this situation, you should get in touch with the Fraud Section’s Sufferer Witness Device toll-cost-free at (888) 549-3945 or by electronic mail at [email protected] You are also inspired to stop by our webpage for this scenario at https://www.justice.gov/prison-vns/situation/united-states-v-greg-e-lindberg.