North Carolina Insurance Commissioner Mike Causey today issued a statement on former insurance mogul Greg Lindberg’s guilty plea in federal court on Tuesday, Nov. 12:
“Greg Lindberg’s guilty plea should serve as a warning to anyone who considers defrauding an insurance company or its policyholders that the consequences will be severe. His guilty plea includes a promise to make full restitution to his victims. It is another step in the process of getting all policyholders repaid. The North Carolina Department of Insurance and I will continue to work with the federal prosecutors to ensure that all avenues are being pursued and that any money recovered through the restitution and forfeiture process will be used to repay the policyholder victims. My commitment to consumer advocacy and being a watchdog for North Carolina’s insurance consumers is stronger than ever. I am pleased to see their interests being protected.”
Background: Lindberg pleaded guilty to conspiracy to commit offenses against the United States and conspiracy to commit money laundering in a scheme to defraud insurance regulators and policyholders.
In May of this year, Lindberg and a co-defendant were found guilty of federal bribery and fraud charges in a retrial. They are awaiting sentencing on the charges.
In August, the N.C. Supreme Court cleared the way for Lindberg’s insurance companies to go into liquidation, allowing policyholders to seek payments from their state guaranty associations.