Special master to complete review of Lindberg finances by mid-May

By John Hilton

The special master assigned to untangle Greg Lindberg's finances and arrive at a restitution number is expected to complete his work by mid-May, according to a new court filing by Lindberg.

The disgraced financier filed a time extension Tuesday to respond to a presentencing report, which was filed under seal on March 6. Lindberg's response is due Thursday and he requested a 30-day delay.

In November, Lindberg pleaded guilty to engineering a $2 billion fraud. His guilty plea on a money laundering conspiracy charge carries a maximum 10-year sentence, the Department of Justice said. Lindberg also pleaded guilty to one count of conspiracy to commit offenses against the United States, including wire fraud, investment adviser fraud, and crimes in connection with insurance business.

Sentencing is being delayed while Lindberg works with a special master to recover funds for his victims. In January, District Judge Max O. Cogburn, Jr. named bankruptcy attorney Joseph Grier of Grier Wright Martinez PA to serve as special master. Scott Avila of Paladin Management is serving as the special master’s financial advisor, court documents say.

"The Special Master’s calculation of the potential restitution amount is estimated to be completed by mid-May 2025," Lindberg's attorneys said in Tuesday's motion. "The determination of restitution, assets available to pay restitution, and the potential sales of said assets all involve significant financial transactions, tracking across a large number of legal entities."

Lindberg's 'carefully orchestrated scheme'

Lindberg's November plea satisfied a 48-page indictment handed down by a federal grand jury in February 2023. It accused Lindberg and two co-conspirators of illegally siphoning vast amounts of money from Lindberg's insurance companies for his personal use, then lying to regulators to hide their $2 billion scheme.

“The 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’s insurance companies, and conceal the alleged purpose of the scheme: Lindberg’s personal gain,” said U.S. Attorney Dena J. King at the time of the indictment.

In addition, Lindberg was convicted for a second time in May of trying to bribe North Carolina Insurance Commissioner Mike Causey to secure more favorable treatment for his insurance companies.

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.

On June 27, 2019, Southland National Insurance Corp., Colorado Bankers Life Insurance Co., Bankers Life Insurance Co., and Southland National Reinsurance Corp. – all owned by Lindberg – were placed in rehabilitation by order of the Superior Court of Wake County, North Carolina.

Since then, regulators have worked to unwind the complex financial web of companies and accounts controlled by Lindberg.

The special master will "verify and quantify the losses suffered by each victim and any amounts already received by each victim to compensate for such losses," court documents say.

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.