Greg Lindberg files racketeering lawsuit against Causey, rehabilitation officials

Former insurance executive Greg Lindberg has filed a federal racketeering lawsuit against North Carolina Insurance Commissioner Mike Causey, a court-appointed rehabilitator and several advisers involved in the oversight of his former insurance companies.  

The complaint was filed Sept. 11 in the U.S. District Court for the Southern District of New York. Named defendants include Causey, Michael Dinius, special deputy rehabilitator of Lindberg's North Carolina insurers, Mohsin "Mo" Meghji, chief executive of M3 Partners, and law firm Williams Mullen.  

Lindberg alleges the defendants operated a racketeering enterprise that collected more than $165 million in fees from insurance company estates without required court approval while blocking transactions and selling assets at below-market values. 

The lawsuit seeks damages, repayment of fees and an injunction blocking additional asset sales.  

According to the complaint, regulators and advisers took control of Lindberg-linked insurers in 2018 and later rejected transactions that could have repaid policyholder obligations while approving sales of affiliated assets at steep discounts.

A spokesman for the North Carolina Department of Insurance said the office does not comment on pending litigation.

Beckett Collectibles worth debated

One of the lawsuit's main claims involves the 2025 sale of Beckett Collectibles. Lindberg alleges the company was sold for approximately $134 million despite being appraised at more than $1 billion.

The complaint also alleges that more than $1 billion in principal-protection bonds were sold before maturity and that several affiliated businesses were sold below their estimated value.

North Carolina regulators took control of several Lindberg-linked insurers in 2019 after raising concerns about affiliated investments and the companies' financial condition.

 Lindberg was later convicted of attempting to bribe Causey and pleaded guilty to running a $2 billion fraud scheme. He was sentenced to 12 years in prison in May.

The rehabilitation proceedings have since generated years of litigation involving regulators, creditors and Lindberg as officials worked to resolve insurer obligations and unwind affiliated investments.  

The suit seeks at least $3 billion in damages before any trebling under the federal Racketeer Influenced and Corrupt Organizations Act, along with disgorgement of more than $165 million in fees allegedly paid to rehabilitation officials and advisers.  

Lindberg also asked the court to halt future asset sales while appeals involving his restitution obligations remain pending. 

The complaint states that the lawsuit does not seek to overturn Lindberg's criminal convictions and instead focuses on actions taken after regulators and court-appointed officials assumed control of assets tied to his insurance operations. 

The defendants have not yet responded to the allegations.

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This report compiled by InsuranceNewsNet staff.