A federal grand jury in Charlotte, North Carolina, indicted a former insurance executive Thursday, accusing him of masterminding and directing a $2 billion scheme to defraud state insurance regulators and defraud thousands of policyholders and others associated with insurance companies he controlled, the U.S. The Department of Justice said so on Friday.
The DOJ said, according to court documents, from no later than 2016 until at least 2019, Greg E. Lindberg and others allegedly agreed to defraud various insurance companies, other third parties and ultimately policyholders.
The DOJ said Lindberg allegedly defrauded the North Carolina Department of Insurance and other regulators, evaded regulatory requirements intended to protect policyholders, concealed the true financial condition of his insurance companies and misappropriated insurance company funds for his personal benefit.
He allegedly got insurers to make nearly $2 billion in investments as part of his plan, most of which remained outstanding as of September. Several insurance companies controlled by Lindberg have been placed into rehabilitation or liquidation since 2019, the DOJ said.
The charges against Mr. Lindberg, which include fraud and submitting false insurance company statements to regulators, carry a maximum penalty of 20 years in prison on each of the top counts, the DOJ said in its statement.
One of Lindberg’s top managers pleaded guilty in December 2022 to various similar charges.
Separately, Mr. Lindberg remains indicted and awaiting trial in a case where he faces multiple charges stemming from alleged attempts to bribe North Carolina’s insurance commissioner, in a case the FBI is investigating.