A 13-count grand jury indictment in Charlotte was filed Thursday towards Greg E. Lindberg of Durham, whom federal prosecutors allege has defrauded hundreds of policyholders, information shops reported.

“The indictment reveals a rigorously orchestrated scheme that relied on an online 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 function of the scheme: Lindberg’s private acquire,” western North Carolina U.S. Legal professional Dena King stated after the indictment was made public Friday.

The counts embody wire fraud, conspiracy, money-laundering conspiracy, making false insurance coverage enterprise statements to regulators and making false entries about insurance coverage enterprise funds.

Lindberg, 53, already is dealing with within the fall a retrial on federal prices accusing him of making an attempt to bribe North Carolina’s insurance coverage commissioner to safe preferential regulatory remedy for his insurance coverage enterprise. Earlier than the 2019 indictment on these prices, Lindberg had given thousands and thousands of {dollars} to North Carolina candidate and get together committees and unbiased expenditure teams.

An appeals court docket final June overturned these 2020 corruption-related convictions, and quickly after he was launched from an Alabama jail the place he had been serving a seven-year sentence. With the most recent indictment, an arrest warrant was issued Thursday for Lindberg.

A Lindberg spokesperson referred to as the most recent prices “piling on” by the federal government as a result of it has a weak case towards Lindberg at retrial. An appeals court docket panel dominated the trial decide erred by giving jurors in Lindberg’s trial deceptive directions earlier than they started deliberations.

In keeping with prosecutors and the most recent indictment, Lindberg and others agreed from no later than 2016 by means of not less than 2019 to defraud insurance coverage corporations, different third events and policyholders. In 2017-18 Lindberg and his co-conspirators used loans and associated transactions to skim “a whole bunch of thousands and thousands of {dollars}” from his insurance coverage corporations to purchase and function different Lindberg corporations, the indictment alleges.

Lindberg deceived the state Insurance coverage Division and different regulators and improperly used insurance coverage firm funds for his private profit, the federal government alleges. Lindberg allegedly personally benefited through the use of firm funds to finance “his lavish way of life” by means of actual property purchases and forgiving over $125 million in loans from his affiliated corporations to himself, in line with a U.S. Justice Division launch.

Lindberg spokesperson Susan Estrich stated the “the most recent prices stem from the federal government’s spending over 5 years going by means of over 7 million paperwork on actually hundreds of difficult monetary transactions involving over 900 corporations and handpicking alleged technical violations which haven’t induced any loss to policyholders in North Carolina or another state for that matter.”

Estrich additionally offered a press release from Lindberg, who stated: “I invested over $500 million in my insurance coverage corporations. I by no means took a penny of dividends. The allegation that I someway defrauded them whereas investing $500 million in them and taking no dividends is totally absurd.”

Final August, the U.S. Securities and Change Fee filed a civil grievance towards Lindberg, an affiliate and their funding advisory agency of defrauding purchasers out of over $75 million by means of complicated schemes involving undisclosed transactions.

And in December, that affiliate – recognized as Christopher Herwig – pleaded responsible in Charlotte federal courts to conspiracy to defraud the US associated to a scheme to maneuver cash between insurance coverage corporations and different companies Lindberg owned.

Herwig is recognized as one of many two co-conspirators on this week’s indictment of Lindberg. The opposite alleged co-conspirator — recognized as Devin Solow — had been formally accused by federal prosecutors of conspiracy in a invoice of knowledge unsealed final month. However Solow’s lawyer and King’s workplace additionally wrote that the federal government and Solow had entered a deferred prosecution settlement whereby the invoice can be dismissed in 5 years if Solow complies with the settlement, which incorporates promising to cooperate with prosecutors.

Learn to navigate and strengthen belief in your online business with The Belief Issue, a weekly e-newsletter analyzing what leaders must succeed. Enroll right here.