An American insurance mogul pleaded guilty to a $2 billion transnational fraud and money laundering scheme, in which he and his co-conspirators deceived regulators and misappropriated company funds for their own benefit.
Greg Lindberg, 54, of Florida, defrauded multiple insurance companies and thousands of policy holders by misusing billions in company funds, while personally enriching himself with more than $125 million in the process.
From 2016 to 2019, Linberg and others engaged in circular transactions among his web of entities, all financed by insurance companies through materially false and misleading statements.
In doing so, he deceived regulators, ratings agencies, insurance companies, and policyholders on the nature of these transactions.
The scheme spanned from North Carolina to Bermuda and as far as Malta.
“Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office.
Court documents also show that he took out more than $125 million in loans to himself from the insurance companies under his control, and then forgave the loans to keep the money.
“Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division.
As of Tuesday’s settlement, Lindberg pleaded guilty to wire fraud, investment adviser fraud, and one count of money laundering conspiracy to boot. He faces a potential maximum sentence of 15 years in prison.
A retrial from May 15, 2024, also saw him convicted of additional wire fraud and bribery charges regarding improper campaign contributions. His goal was to bribe North Carolina’s elected Commissioner of Insurance to influence the regulation of his insurance companies, prosecutors said.
