Feds seek $1.5M forfeiture from Greg Lindberg after bribery conviction

Federal government attorneys are asking a court to order forfeiture of nearly $1.5 million in funds previously seized from disgraced financier Greg Lindberg after his recent bribery conviction.

Lindberg, along with associate John Gray, was convicted in May of bribing North Carolina Insurance Commissioner Mike Causey for a second time.

As part of the 2018 FBI investigation, Causey wore a recording device while meeting with Lindberg, who sought to replace then-deputy insurance commissioner Jackie Obusek with Debbie Walker.

According to court documents, Lindberg and his associates worked to conceal the source of funds to funnel to Causey. Once details were ironed out in June 2018, "Lindberg replied via email that he would 'cut the checks tonight,'" the government said in a request for forfeiture. "Thereafter, the Funds were deposited, in the form of a $500,000 check and a $1,000,000 check from Lindberg, into the accounts from which the FBI ultimately seized the Funds."

The funds are:

• Approximately $979,128.63 in funds seized from a Wells Fargo Bank account held in the name of North Carolina Growth and Prosperity Alliance Inc.; and
• Approximately $475,629.82 in funds seized from a Wells Fargo Bank account held in the name of North Carolina Growth and Prosperity Committee Inc.

"Defendants set-up and controlled the entities that held the Funds, opened Wells Fargo accounts in the names of the entities, and funded the accounts of the entities for the express purpose of bribing the North Carolina Commissioner of Insurance and hiding the source of funds used to bribe the Commissioner," the government said.

Lindberg responds

Lindberg, founder of the private equity firm Eli Global, eventually acquired several insurers and grouped them together as the Global Bankers Insurance Group. Insurance profits soared and ultimately enabled Lindberg to funnel $2 billion to Eli Global, according to a Wall Street Journal report. That attracted regulators and initiated Lindberg's downfall.

Lindberg made a special agreement with former insurance commissioner Wayne Goodwin allowing him to invest up to 40% of his insurance companies' assets into affiliated business entities. In November 2016, Goodwin lost his seat to Causey, who reduced the cap on affiliated investments from 40% to 10%. That led to the bribery attempt.

In a second new court filing, Lindberg's attorneys responded in defense of its May motion for acquittal or a new trial.

Lindberg is trying to best the government a second time in challenging his May conviction. Convicted in 2020 on bribery and fraud charges, along with associate John Gray, Lindberg served 633 days behind bars before the conviction was vacated due to improper jury instructions.

The definition of what constitutes "an official act" forms the basis for Lindberg's appeal. Prosecutors say Lindberg and Gray gave, offered, and promised Causey millions of dollars in campaign contributions and other things of value in exchange for the specific removal of Obusek and more favorable oversight.

Lindberg maintains that he was asking for "a reassignment of tasks" and there "was no quid pro quo."

"The government does not dispute that neither Mr. Lindberg nor Mr. Gray tied campaign contributions to a request for a different outcome on the Department of Insurance’s review of Mr. Lindberg’s businesses," Lindberg's attorneys say in the new response. "Nor could it. The evidence was overwhelming that Mr. Lindberg simply sought a level playing field, not a predetermined outcome on the review of his businesses."

© Entire contents copyright 2024 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.