Former Insurance Executive Indicted for $2B Fraud Scheme | OPA

A federal grand jury in Charlotte returned an indictment yesterday charging a North Carolina person with masterminding and directing a large scheme to deceive point out insurance regulators and defraud hundreds of policyholders and other individuals in link with insurance coverage businesses he controlled.

In accordance to courtroom files, from no later than 2016 by way of at the very least 2019, Greg E. Lindberg, 53, of Durham, and other people allegedly agreed to defraud many coverage companies, other third parties, and in the long run, thousands of insurance plan policyholders. Lindberg allegedly deceived the North Carolina Section of Insurance plan and other regulators, evaded regulatory demands meant to guard policyholders, hid the correct money condition of his insurance policies corporations, and improperly applied insurance plan company resources for his individual reward. In particular, the indictment alleges that Lindberg individually benefitted from the fraud in portion by making use of insurance policy organization money to finance his lavish way of living, including the obtain and refinancing of personal true estate and “forgiving” much more than $125 million in financial loans from his affiliated corporations to himself.

“Policyholders count on insurance policy company owners to comply with the policies so that the positive aspects they have earned and rely on will be accessible when required,” mentioned Assistant Lawyer Typical 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, producing substantial economic harm to 1000’s of victims. As this prosecution demonstrates, no make any difference how intricate the scheme, the section will hold accountable corporate executives whose crimes go away policyholders keeping the bag although lining their very own pockets.”

The charged carry out allegedly triggered significant economic hardship to the victims. Lindberg allegedly brought on the insurance plan companies to have interaction in investments of approximately $2 billion as section of his scheme, most of which remained outstanding as of September 2022. Due to the fact 2019, multiple insurance plan businesses controlled by Lindberg have been positioned into rehabilitation or liquidation.

“The indictment reveals a meticulously orchestrated plan that relied on a website of elaborate money investments and transactions built to evade regulators, disguise the money health and fitness of Lindberg’s insurance policies businesses, and conceal the alleged purpose of the plan: Lindberg’s personalized obtain,” explained U.S. Legal professional Dena J. King for the Western District of North Carolina. “My office will continue to function with our regulation enforcement partners to look into and prosecute money wrongdoing and hold perpetrators accountable for their steps.”

“People buy insurance plan products and solutions to present comfort and ease and safety. Nevertheless, this indictment alleges this was a innovative and intricate plan created for a person rationale, to gain Lindberg,” mentioned Performing Special Agent in Charge Michael C. Scherck of the FBI Charlotte Discipline Business office. “The FBI is unwavering in our efforts to maintain individuals accountable who dedicate federal financial crimes.”

Lindberg is charged with one depend of conspiracy to dedicate crimes in link with insurance policies organization, wire fraud, and expense adviser fraud 1 depend of wire fraud four counts of wrong insurance policies business statements offered to regulators 6 counts of false entries about the economic issue or solvency of an coverage enterprise and one particular rely of income laundering conspiracy. If convicted, he faces a highest penalty of 20 years in prison on just about every of the top counts.

In December 2022, one particular of Lindberg’s prime executives, Christopher Herwig, pleaded guilty in a connected circumstance to conspiring with Lindberg and some others to dedicate wire fraud, investment advisor fraud, and revenue laundering, as effectively as to the generating of bogus statements in the company of insurance policies.

Individually, Lindberg continues to be beneath indictment and is awaiting retrial in a circumstance in which he faces quite a few expenses stemming from alleged attempts to bribe the Commissioner of the North Carolina Department of Insurance coverage.

The FBI Charlotte Field Office environment is investigating the situation.

Assistant U.S. Legal professional Daniel Ryan for the Western District of North Carolina and Demo Lawyer Lyndie Freeman of the Legal Division’s Fraud Segment are prosecuting the circumstance.

If you believe that you are a target in this scenario, you should get in touch with the Fraud Section’s Sufferer Witness Unit toll-free of charge at (888) 549-3945 or by email at [email protected]. You are also encouraged to pay a visit to our webpage for this circumstance at https://www.justice.gov/criminal-vns/case/united-states-v-greg-e-lindberg.