Greg E. Lindberg, a Florida-based insurance magnate and former political donor in North Carolina, pleaded guilty this week to charges connected to a $2 billion scheme to defraud insurance regulators, policyholders, and others.
The plea, entered before U.S. Magistrate Judge David Keesler in Charlotte on Tuesday, involved one count of conspiracy to commit offenses against the United States and one count of conspiracy to commit money laundering.
Lindberg, 54, was indicted in February 2023 on 13 counts but ultimately pled guilty to two charges. These include conspiracy to commit offenses against the U.S. and conspiracy to commit money laundering.
Legal documents indicate Lindberg could face a total of 15 years in prison, with the money laundering charge carrying a maximum sentence of 10 years and the other charge five years. A U.S. Department of Justice release confirmed the charges in relation to Lindberg’s scheme that spanned from 2016 to 2019.
Valerie Plesch/AP Photo
Fraudulent Activities and Personal Gains
The scheme involved Lindberg and his coconspirators deceiving state regulators, including those in North Carolina, to conceal the condition of his companies.
Lindberg used insurance company funds for personal benefit, including forgiving over $125 million in loans from his controlled companies.
The U.S. Justice Department described the conspiracy as involving millions of dollars in fraudulent transactions, which ultimately harmed thousands of policyholders.
“Lindberg’s actions harmed thousands of policyholders, deceived regulators, and caused tremendous risk for the insurance industry,” Dena J. King, U.S. Attorney for the Western District of North Carolina, told The Associated Press.
Newsweek has reached out to the U.S. Attorney’s Office for comment via email.
Political Donations and Past Convictions
In addition to his criminal activities, Lindberg made substantial political contributions. Since 2016, he donated more than $5 million to state and federal candidates, predominantly to Republicans, though he also supported Democrats.
Lindberg had previously been convicted in May in a separate case involving bribery attempts aimed at securing preferential treatment from North Carolina’s elected insurance commissioner.
Although his original conviction was vacated by a federal appeals court in 2021, Lindberg now faces sentencing for the guilty plea.
Ongoing Legal Proceedings
Lindberg’s case remains ongoing, with no sentencing date yet set. He has requested to be held in a halfway house in Tampa before sentencing, and a hearing is scheduled for next week.
Lindberg’s company executives are also under investigation, with one of his top associates having already pled guilty to similar charges in late 2022.
Lindberg’s once-prominent insurance empire and political influence now face a significant legal reckoning, and his case continues to highlight concerns regarding fraud and financial misconduct within the insurance industry.
This article includes reporting from The Associated Press
