Insurance Investor Accused of North Carolina Political Bribery Taps Former FBI Director as Legal Counsel

November 5, 2019

Embattled insurance investor Greg E. Lindberg has retained Louis Freeh, former federal judge and FBI director, and his firm Freeh, Sporkin & Sullivan to examine and render advice regarding financial aspects of Lindberg’s business entities, with respect to, among other things, assertions made by the North Carolina Insurance Department, as well as those made in recent press accounts, pending litigation, and regulatory matters relating to his insurance companies that are currently in rehabilitation, Lindberg said in a statement.

“Mr. Lindberg has asserted from the outset that the allegations about his insurance companies and him are false and is pleased that Mr. Freeh and his team to have agreed to take on this assignment,” a spokesperson for Lindberg stated.

Lindberg is the sole shareholder of Global Growth. Global Growth’s main holding company has over $4 billion of book equity and $77 million in net income on a tax basis as of 12-31-18. Global Growth companies are forecasting over $300 million in EBITDA for 2020. Among his investments included four insurance companies that were taken over by the North Carolina Department of Insurance earlier this year after Lindberg was charged with bribery and conspiracy charges. He is alleged by federal prosecutors to have sought to make political bribes in exchange for easier oversight of his companies.

Federal prosecutors claim that Lindberg plotted to bribe Causey with a political payout. Days later, Lindberg-owned Global Bankers Insurance Group said it was pursuing buyers for its U.S. life insurance companies.

An attorney for Lindberg, Aaron Tobin, issued a statement in June saying Lindberg and company officials agreed to the rehabilitation process and have been working with regulators.

Lindberg contributed more than $7 million since 2016 to state and federal candidates and committees, significantly favoring Republican causes. For example, he gave the North Carolina Republican Party almost $1.5 million in 2017 and 2018, and $500,000 to the state’s Democrats, according to state campaign finance records.

Federal prosecutors said April 2 that Causey, a Republican, had alerted law enforcement voluntarily to help them uncover what they label a corruption scheme involving those who were indicted.

In November 2018, Causey handed over to the federal government a $240,000 contribution he received last year from the state Republican Party that was related to the improper campaign giving by Lindberg. Causey told a local TV station it was the FBI’s idea to send the money to the government because the agency told him he couldn’t return it to the state GOP since it was part of their investigation.

Lindberg denies the allegations and in September asked a judge to dismiss the federal criminal charges.

In October, the former head of the North Carolina Republican Party pleaded guilty in the case.

Related:

Topics North Carolina

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