A federal grand jury in Charlotte returned an indictment yesterday charging a North Carolina person with masterminding and directing a large scheme to deceive condition insurance coverage regulators and defraud 1000’s of policyholders and some others in connection with insurance coverage corporations he controlled.

According to courtroom paperwork, from no later on than 2016 by way of at the very least 2019, Greg E. Lindberg, 53, of Durham, and many others allegedly agreed to defraud many insurance coverage firms, other 3rd functions, and finally, thousands of insurance policyholders. Lindberg allegedly deceived the North Carolina Department of Insurance plan and other regulators, evaded regulatory specifications meant to safeguard policyholders, concealed the real fiscal issue of his coverage firms, and improperly applied insurance policies firm funds for his own reward. In individual, the indictment alleges that Lindberg individually benefitted from the fraud in portion by applying insurance policy organization money to finance his lavish life style, such as the buy and refinancing of personalized serious estate and “forgiving” more than $125 million in loans from his affiliated companies to himself.

“Policyholders count on insurance policy business owners to observe the regulations so that the gains they have earned and rely on will be offered when required,” stated Assistant Legal professional Normal Kenneth A. Well mannered, Jr. of the Justice Department’s Felony Division. “In this alleged $2 billion plan, the defendant defrauded regulators and policyholders alike, leading to substantial fiscal damage to countless numbers of victims. As this prosecution demonstrates, no subject how sophisticated the scheme, the office will hold accountable corporate executives whose crimes go away policyholders holding the bag even though lining their individual pockets.”

The charged carry out allegedly caused substantial economical hardship to the victims. Lindberg allegedly triggered the insurance policy corporations to interact in investments of just about $2 billion as component of his scheme, most of which remained exceptional as of September 2022. Due to the fact 2019, several insurance policies organizations controlled by Lindberg have been put into rehabilitation or liquidation.

“The indictment reveals a carefully orchestrated scheme that relied on a web of complicated economical investments and transactions built to evade regulators, disguise the financial health of Lindberg’s insurance coverage providers, and conceal the alleged goal of the scheme: Lindberg’s personal achieve,” stated U.S. Legal professional Dena J. King for the Western District of North Carolina. “My workplace will keep on to do the job with our law enforcement partners to look into and prosecute financial wrongdoing and hold perpetrators accountable for their steps.”

“People purchase insurance plan goods to deliver comfort and ease and safety. Even so, this indictment alleges this was a sophisticated and intricate scheme made for a single purpose, to gain Lindberg,” reported Performing Particular Agent in Demand Michael C. Scherck of the FBI Charlotte Industry Place of work. “The FBI is unwavering in our efforts to keep those accountable who commit federal economical crimes.”

Lindberg is charged with one particular depend of conspiracy to commit crimes in relationship with insurance enterprise, wire fraud, and investment adviser fraud just one count of wire fraud four counts of fake insurance policies business statements offered to regulators six counts of false entries about the monetary situation or solvency of an insurance company and 1 rely of income laundering conspiracy. If convicted, he faces a optimum penalty of 20 several years in jail on each of the prime counts.

In December 2022, one particular of Lindberg’s leading executives, Christopher Herwig, pleaded guilty in a similar circumstance to conspiring with Lindberg and others to dedicate wire fraud, expenditure advisor fraud, and cash laundering, as perfectly as to the creating of fake statements in the organization of insurance coverage.

Independently, Lindberg stays less than indictment and is awaiting retrial in a situation in which he faces many prices stemming from alleged attempts to bribe the Commissioner of the North Carolina Department of Insurance policies.

The FBI Charlotte Subject Business is investigating the situation.

Assistant U.S. Legal professional Daniel Ryan for the Western District of North Carolina and Trial Lawyer Lyndie Freeman of the Prison Division’s Fraud Section are prosecuting the scenario.

If you believe that you are a victim in this scenario, remember to contact the Fraud Section’s Sufferer Witness Device toll-no cost at (888) 549-3945 or by e-mail at [email protected] You are also encouraged to pay a visit to our webpage for this scenario at https://www.justice.gov/legal-vns/situation/united-states-v-greg-e-lindberg.