Home Insurance Former insurance coverage magnate indicted for $2 billion fraud scheme

Former insurance coverage magnate indicted for $2 billion fraud scheme

Former insurance coverage magnate indicted for $2 billion fraud scheme

The 52-year-old from Durham has been accused of utilizing his firm’s funds to finance his lavish life-style, together with actual property, and “forgiving” greater than $125 million in loans from his affiliated corporations to himself.

‘Rigorously orchestrated scheme’

Lindberg allegedly precipitated the insurance coverage corporations to have interaction in investments of almost $2 billion as a part of his scheme, most of which remained excellent as of September 2022.

Since 2019, a number of insurance coverage corporations managed by Lindberg have been positioned into rehabilitation or liquidation. The scheme additionally precipitated “substantial monetary hardship” for the policyholders, mentioned the US Justice Division.

“The indictment reveals a rigorously orchestrated scheme that relied on an internet of complicated monetary investments and transactions designed to evade regulators, disguise the monetary well being of Lindberg’s insurance coverage corporations, and conceal the alleged objective of the scheme – Lindberg’s private acquire,” mentioned Dena J. King, lawyer for the western district of North Carolina, in a information launch.

Lindberg is charged with one depend of conspiracy to commit crimes in reference to insurance coverage enterprise, wire fraud, and funding adviser fraud; one depend of wire fraud; 4 counts of false insurance coverage enterprise statements offered to regulators; six counts of false entries in regards to the monetary situation or solvency of an insurance coverage enterprise; and one depend of cash laundering conspiracy.

If convicted, he faces a most penalty of 20 years in jail on every of the highest counts.

In December 2022, considered one of Lindberg’s prime executives, Christopher Herwig, pleaded responsible in a associated case to conspiring with Lindberg and others to commit wire fraud, funding advisor fraud, and cash laundering, in addition to to the making of false statements within the enterprise of insurance coverage.

Lindberg stays beneath indictment. He’s awaiting retrial in a separate case the place he faces prices stemming from alleged makes an attempt to bribe North Carolina insurance coverage commissioner Mike Causey.

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