Tampa insurance broker pays the price for $2B international fraud

A Tampa insurance business owner has pleaded guilty to a $2B international fraud and money laundering scheme.

The Florida resident, Greg Lindberg, held his hands up on charges including conspiracy to commit offenses against the United States. He also entered the guilty plea on money laundering charges concerning a scheme to defraud insurance regulators and policyholders in North Carolina, Bermuda, and Malta through several shell companies.

The Federal Bureau of Investigation (FBI) Charlotte Field Office led the investigation into the Lindberg case with support from the Securities and Exchange Commission’s (SEC) Chicago Regional Office.

“Greg Lindberg and his co-conspirators misused $2 billion of company funds in their international scheme to defraud corporate victims, regulators, and policyholders,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division. “Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation.

Florida insurance broker pleads guilty to $2B fraud charges

Lindberg admitted to a conspiracy to defraud insurance companies, third parties, and thousands of insurance policyholders that lasted from 2016 through at least 2019.

Lindberg and his co-conspirators attempted to defraud the North Carolina Department of Insurance and other financial watchdogs with a litany of ignorance of the policies and safeguards on insurance practices.

He also used the laundered monies he stole from companies and people who placed their trust in him to the tune of $2 billion in loans and other securities.

The cabal of fraudsters, led by Lindberg, carried out “circular transactions” among the associated entities involved in the scheme to launder the funds.

He also pleaded guilty to withholding “material information from regulators, various rating agencies, insurance companies, insurance policyholders, and others regarding these transactions,” according to the court information.

The Floridian could face up to five years in prison for conspiracy to commit offenses against the United States and a possible 10 years in prison on the money laundering conspiracy count.

“Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office.

Image: Pixlr.

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