On November 12, 2024, the U.S. Department of Justice announced that Florida resident Greg Lindberg, a multinational investment and insurance company mogul, pleaded guilty to conspiracy charges in connection with his role in an international insurance fraud scheme that, among other things, concealed his improper use of insurance funds. He also pleaded guilty for his role in laundering the proceeds of the scheme – a scheme that has reportedly left multiple companies in or on the brink of liquidation. According to the DOJ, Lindberg 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, and one count of conspiracy to commit money laundering for his role in the scheme. A sentencing hearing for Lindberg has not yet been set.
According to court documents, from approximately 2016 through at least 2019, Lindberg and others conspired to defraud various insurance companies, third party entities, and policyholders by using a web of companies that Lindberg controlled to engage in circular transactions in an attempt to conceal the fraudulent scheme. According to the indictment, these companies, which were based in North Carolina, Bermuda, Malta, and elsewhere, invested more than $2 billion in loans and other securities with Lindberg’s own affiliated companies. Lindberg was able to benefit in part from the scheme by directing insurance companies that he controlled to “forgive” more than $125 million in loans that he essentially made to himself. In furtherance of the scheme, Lindberg and his co-conspirators allegedly deceived the North Carolina Department of Insurance (“NCDOI”) and other regulators, evaded regulatory requirements established to protect policyholders, concealed the true financial condition of Lindberg’s companies, and laundered proceeds derived from the scheme. According to the DOJ, the scheme caused Lindberg’s insurance companies, other third-party entities, and thousands of insurance policyholders to suffer substantial financial hardship.
The DOJ reported that Lindberg’s guilty plea comes shortly after a federal jury in North Carolina convicted him, in May 2024, for engaging in a bribery scheme involving independent expenditure accounts and improper campaign contributions, as part of an alleged attempt to have the elected North Carolina Commission of Insurance influence the regulation of Lindberg’s insurance companies. A sentencing hearing has not yet been set for Lindberg in the bribery case.
The DOJ also reported that, in December 2022, Christopher Herwig, one of Lindberg’s top executives, pleaded guilty in a related case to conspiracy to commit offenses against the United States, including wire fraud, investment advisor fraud, and money laundering for his role in the fraudulent insurance scheme. Herwig also pleaded guilty to making false statements in the business of insurance. A sentencing date has not yet been set for Herwig in this case.
DOJ Press Release | Indictment | DOJ Press Release – May 2024