CHARLOTTE, N.C. — Greg Lindberg, an insurance mogul who was once one of North Carolina's biggest political donors, pleaded guilty Tuesday to a money laundering and fraud charges in a $2 billion scheme that prosecutors say harmed thousands of policyholders.
Federal prosecutors said Lindberg conspired to defraud insurance regulators, policyholders and other insurance companies by laundering money through a web of companies based in North Carolina, Bermuda, Malta and elsewhere. Prosecutors allege the scheme's intention was to conceal the true financial condition of Lindberg's companies, saying he improperly used insurance company funds for his personal benefit.
Lindberg, who now lives in Tampa, Florida, allegedly caused the companies he controlled to invest more than $2 billion in loans and other securities with his own affiliated companies and laundered the proceeds.
He 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. He also pleaded guilty to one count of money laundering conspiracy. He faces a maximum sentence of five years on the conspiracy charge and 10 years in prison for the money laundering count, prosecutors announced.
“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, said in a statement Tuesday. “Today’s guilty plea affirms our commitment to protecting the public from predatory financial schemes and bringing to justice those who betray public trust for personal gain.”
In 2020, Lindberg was sentenced to seven years in prison for attempting to bribe a North Carolina elected official to get preferential regulatory treatment for his insurance business. He served over 600 days in prison before the conviction was vacated by an appeals court. Sentencing for a second conviction on bribery charges hasn't been set.