Greg Lindberg asks court to set aside bribery conviction, or grant new trial

Embattled financier Greg Lindberg today filed a motion for acquittal, or a new trial, two weeks after a second jury convicted him of bribing the North Carolina insurance commissioner.

The 55-page motion argues that the evidence is “insufficient” for a conviction on the two charges: bribery and conspiracy to commit honest services wire fraud, according to court documents. A consultant, John Gray, was also convicted.

Both men face 30 years behind bars. In his motion for acquittal, Lindberg returns to the definition of “official act.”

Prosecutors say Lindberg and Gray gave, offered, and promised the Commissioner Mike Causey millions of dollars in campaign contributions and other things of value in exchange for the removal of his senior deputy commissioner, who was responsible for overseeing the regulation and the periodic examination of Lindberg’s Global Bankers Insurance Group.

“In this case, the government has stretched the federal bribery statutes beyond their breaking point,” the motion reads. “It has taken the position that the mere reassignment of work from one deputy commissioner to another—without any proof Mr. Lindberg sought a different outcome on the Department of Insurance’s review of his businesses—qualifies as an ‘official act’ or the ‘business’ of the Department.”

Lindberg was convicted in 2020 on bribery and fraud charges, along with Gray. Lindberg served 633 days behind bars before the conviction was vacated. The “official act” definition played a central role in the need for a second trial.

In a June 2022 ruling, the Fourth Circuit Court of Appeals said that the trial judge improperly lowered the prosecution’s burden of proof by telling the jury that the staffing change was an “official act,” one of the elements of the fraud conspiracy charge.

Only a jury can make that determination.

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%.

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.