{"id":52291,"date":"2023-02-24T10:09:03","date_gmt":"2023-02-24T18:09:03","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=52291"},"modified":"2023-02-24T10:20:30","modified_gmt":"2023-02-24T18:20:30","slug":"former-insurance-executive-indicted-for-allegedly-masterminding-2-billion-fraud-scheme","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=52291","title":{"rendered":"Former Insurance Executive Indicted for Allegedly Masterminding $2 Billion Fraud Scheme"},"content":{"rendered":"

\"\"A federal grand jury in Charlotte returned an indictment Thursday charging a North Carolina man with masterminding a massive scheme to deceive state insurance regulators and defraud thousands of policyholders and others, officials stated.<\/span><\/p>\n

According to court documents, from 2016 through 2019, Greg E. Lindberg, 53, of Durham, and others allegedly agreed to defraud various insurance companies, thousands of insurance policyholders, and others.<\/span><\/p>\n

Lindberg allegedly deceived the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the actual financial condition of his insurance companies, and improperly used insurance company funds for his benefit.<\/span><\/p>\n

\"FBI
FBI Photo Image<\/figcaption><\/figure>\n

The indictment alleges that Lindberg partially benefitted from the fraud by using insurance company funds to finance his lavish lifestyle, including purchasing and refinancing personal real estate and \u201cforgiving\u201d more than $125 million in loans from his affiliated companies to himself.<\/span>
\nThe charged conduct allegedly caused substantial financial hardship to the victims. <\/span>
\n\"\"Lindberg allegedly caused the insurance companies to invest nearly $2 billion as part of his scheme, most of which remained outstanding as of September 2022. <\/span>Since 2019, multiple insurance companies controlled by Lindberg have been placed into rehabilitation or liquidation.<\/span><\/p>\n

\u201cThe indictment reveals a carefully orchestrated scheme that relied on a web of complex financial investments and transactions designed to evade regulators, disguise the financial health of Lindberg\u2019s insurance companies, and conceal the alleged purpose of the scheme: Lindberg\u2019s gain,\u201d said U.S. Attorney Dena J. King for the Western District of North Carolina. <\/span>
\nLindberg is charged with one count of conspiracy to commit crimes in connection with an insurance business, wire fraud, and investment adviser 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 solvency of an insurance business; and one count of money laundering conspiracy. <\/span><\/p>\n

If convicted, he faces up to 20 years in prison on each main count.<\/span><\/p>\n

In December 2022, one of Lindberg\u2019s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance.<\/span><\/p>\n

Separately, Lindberg remains under indictment and is awaiting retrial in a case where he faces several charges from alleged attempts to bribe the North Carolina Department of Insurance Commissioner.<\/span><\/p>\n