DURHAM, N.C. (WNCN) — A federal grand jury in Charlotte indicted a former Durham insurance executive on Thursday for defrauding and deceiving state insurance regulators and policyholders, according to the United States Department of Justice.
According to court documents, from 2016 to 2019, Greg E. Lindberg, 53, of Durham, and others agreed to defraud insurance companies, other third parties and thousands of policyholders.
The USDOJ said Lindberg deceived the North Carolina Department of Insurance and other regulators by avoiding requirements that protect policyholders, hid the actual financial condition of his insurance companies, and improperly used insurance company funds for his personal benefit.
The indictment said that Lindberg possibly benefitted from the fraud by using the money to fund his “lavish” lifestyle, including buying and refinancing personal real estate and “forgiving” more than $125 million in loans from affiliated companies to himself.
“In this alleged $2 billion scheme, the defendant defrauded regulators and policyholders alike, causing substantial financial harm to thousands of victims,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s criminal division. “As this prosecution demonstrates, no matter how complex the scheme, the department will hold accountable corporate executives whose crimes leave policyholders holding the bag while lining their own pockets.”
The USDOJ said the conduct allegedly caused financial hardship to the victims. Lindberg caused the insurance companies to engage in investments of nearly $2 billion as part of the scheme, most of which remained outstanding as of September 2022. Since 2019, multiple insurance companies controlled by Lindberg have been placed into rehabilitation or liquidation.
Lindberg is charged with one count of conspiracy to commit crimes in connection with insurance business, wire fraud and investment wire fraud; one count of wire fraud; four counts of false insurance business statements presented to regulators; six counts of false entries about the financial condition or possession of assets of an insurance business and one count of money laundering conspiracy.
If convicted, Lindberg faces a maximum penalty of 20 years in prison on each of the top counts.
The USDOJ says Lindberg remains under indictment and is awaiting retrial in a case in which he faces several charges stemming from alleged attempts to bribe the Commissioner of the North Carolina Department of Insurance.
The FBI Charlotte Field Office is investigating the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or email firstname.lastname@example.org.