Billionaire Greg Lindberg pleads guilty to a $2 billion insurance fraud scheme

Chase Jordan, The Charlotte ObserverCharlotte Observer

U.S. marshals handcuffed Greg Lindberg and escorted him out of a Charlotte federal courtroom on Tuesday after he pleaded guilty to an insurance fraud scheme costing victims and businesses more than $2 billion.

The billionaire founder of Global Growth and owner of Global Bankers Insurance Group worked with co-conspirators to defraud insurance companies, third parties and thousands of policyholders, according to court records. A federal grand jury indicted the 54-year-old man in February 2023.

The scheme occurred from around 2016 through at least 2019, according to court records. It impacted insurance regulators and policyholders through a web of companies based in North Carolina, Bermuda, Malta, and elsewhere, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Lindberg pleaded to one count of conspiracy to commit offenses against the U.S., including wire fraud, investment adviser fraud, and crimes in connection with insurance business, and one count of money laundering conspiracy. He faces a maximum penalty of 15 years on the charges.

Lindberg deceived state regulators, evaded regulatory requirements, concealed the financial condition of his insurance companies and used insurance company funds for his personal benefit, according to the U.S. Attorney’s Office.

He used the money to buy and refinance personal real estate. This included “forgiving” more than $125 million in loans from his affiliated companies to himself, according to court records.

Victims had financial hardships because of Lindberg’s actions, the U.S. Attorney’s Office said. He caused insurance companies to engage in investments of over $2 billion for the scheme, most of which was still outstanding as of September 2022. The insurance companies controlled by Lindberg were placed into rehabilitation or liquidation.

Already convicted of bribing state official

The case is the second scheme-related case for Lindberg in recent years.

He tried to buy off N.C. Department of Insurance Commissioner Mike Causey to remove a suspicious regulator. A federal jury convicted Lindberg in May for the bribery scheme that occurred from April 2017 to August 2018

The Fourth U.S. Circuit Court of Appeals previously threw out Lindberg’s 2020 bribery conviction in the case because a judge gave improper instructions to jurors in 2022. Another prosecution attempt led to the conviction this year.

Along with his employee John Gray, the businessman from Durham gave and offered millions in campaign contributions and “other things of value” to try to remove the senior deputy of the commissioner, who oversaw one of Lindberg’s companies for the state, according to court records.

Causey went to the FBI and wore a wire to record conversations with Lindberg.

The talks involved plans on how to funnel campaign contributions anonymously. And to conceal the bribery scheme, two corporate entities were set up to form independent spending committees to support the commissioner’s re-election campaign. Lindberg funded the groups with $1.5 million.

Robert Hayes, a co-defendant, transferred $250,000 in previous contributions to the North Carolina Republican Party, of which Hayes was chair, to the commissioner’s re-election campaign. This was done under the direction of Lindberg and Gray.

A jury convicted Gray of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds, according to the U.S. Attorney’s Office. Hayes pleaded guilty in October 2019 to making false statements to the FBI.

Lindberg waived his right to an appeal in both cases.

What happens to Lindberg now?

Lindberg made a motion to work and live in a residential reentry center or halfway house in Tampa, Florida, after turning himself in to U.S. marshals. He’s working to pay restitution to all policyholders and other entities, according to his lawyers, James Wyatt and Brandon McCarthy.

If granted by the court, Lindberg will work in Florida, near his home, until he is sent to a facility by the Bureau of Prisons after sentencing. Lindberg said it is necessary to communicate directly and consistently with his counsel to deal with billions of dollars of assets and moving money into the hands of receivers or a special master to pay policyholders and businesses back.

Lindberg is unable to use a laptop or cell phone to conduct business in a regular jail facility.

But prosecutors said it would give Lindberg preferential treatment since a halfway house is not considered custody. Assistant U.S. Attorney Lyndie Freeman said a receivership is already in place over his assets and Lindberg’s participation is not as important as the defense argued.

“It hasn’t happened and he’s been out for six years,” Assistant U.S. Attorney Daniel Ryan said about restitution and paying victims back.

And victims said they don’t want Lindberg to handle business or assets because of problems in the past, according to prosecutors.

At the request of prosecutors, Caitlin Poe, a partner at Williams Mullen who represents Lindberg’s North Carolina insurance companies; and Luis Lach, a partner at Casillas Santiago Torres LLC who represents Universal Life Insurance Company, also made comments in court Tuesday about business dealings and wanting to move forward with restitution.

Before going to prison, Lindberg is also asking to work in Tampa to make childcare arrangements for eight children who are under the age of 7. He is the sole parent providing care for the children, according to court documents. His partner does not have a U.S. visa and lives in Spain.

Judge David Keesler brought up equity and the perception of Lindberg getting special treatment because he’s rich.

Keesler said he was also concerned about the request for Tampa being filed a day before the hearing on Veterans Day, a federal holiday. Due to short timing, he ordered the U.S. Attorney’s Office to respond to the motion within a week. Discussions for the request will continue on Nov. 21.

A hearing to determine Lindberg’s sentence for the bribery and fraud cases is pending, according to court officials.