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.
‘Carefully orchestrated scheme’
Lindberg allegedly brought about the insurance coverage corporations to have interaction in investments of practically $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 brought about “substantial financial hardship” for the policyholders, stated the US Justice Department.
“The indictment reveals a carefully orchestrated scheme that relied on a web of complex financial investments and transactions designed to evade regulators, disguise the financial health of Lindberg’s insurance companies, and conceal the alleged purpose of the scheme – Lindberg’s personal gain,” stated Dena J. King, lawyer for the western district of North Carolina, in a information launch.
Lindberg is charged with one rely of conspiracy to commit crimes in reference to insurance coverage enterprise, wire fraud, and funding adviser fraud; one rely of wire fraud; 4 counts of false insurance coverage enterprise statements offered to regulators; six counts of false entries concerning the monetary situation or solvency of an insurance coverage enterprise; and one rely 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, one among 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 below indictment. He is awaiting retrial in a separate case the place he faces costs stemming from alleged makes an attempt to bribe North Carolina insurance coverage commissioner Mike Causey.
What are your ideas on this story? Share them under.