Greg Lindberg and John Gray Convicted of Attempted Bribery of North Carolina Insurance Commissioner

A federal jury on Wednesday convicted Greg Lindberg and his co-defendant John Gray of attempting to bribe the North Carolina insurance commissioner in 2018. This was the second trial on the bribery charges for Lindberg and Gray, after an appeals court overturned their first conviction in 2022. The men could face a maximum of 30 years in federal prison, plus fines.

Lindberg, who once controlled two Life insurance companies, a reinsurance company, and multiple other businesses, was considered a multi-millionaire and a heavy campaign donor to Carolina politicians. However, he now faces lawsuits over his business dealings and a separate criminal trial on fraud charges. A grand jury in 2023 indicted Lindberg and two associates on charges of concealing the financial condition and investments of his insurance companies while skimming millions of dollars from the carriers.

U.S. Attorney Dena King stated that the defendants planned and executed an intricate scheme involving substantial campaign contributions to an elected official in exchange for favorable treatment. Insurance Commissioner Mike Causey helped launch the investigation after Lindberg approached him about relaxing oversight on his insurance companies. Causey alerted the FBI and wore a hidden recording device during multiple meetings with Lindberg and Gray.

Court documents and prosecutors revealed that Lindberg promised Causey millions in anonymous campaign contributions in exchange for removing the state’s senior deputy commissioner from overseeing Lindberg’s insurance companies. To conceal the bribery scheme, corporate entities and independent expenditure committees were set up to support Causey’s reelection campaign, funded by Lindberg. The North Carolina Republican party chairman also transferred funds from Lindberg to support the scheme.

Lindberg and Gray were convicted of conspiracy to commit wire fraud and bribery at the second trial held in Charlotte. FBI Special Agent in Charge Robert DeWitt stated that Lindberg and Gray knowingly ignored the difference between legal political donations and felonious bribery. They attempted to buy changes to North Carolina Department of Insurance personnel to benefit Lindberg’s businesses.

The appeals court ordered a new trial in 2022 due to errors in jury instructions from the trial court judge. The lower court judge had incorrectly determined what constituted an official act, which should be decided by a jury. Lindberg and Gray were convicted in 2020 on the bribery charges but were granted a new trial.

A sentencing date has not been set for Lindberg and Gray. The 2019 indictment can be viewed online. Causey expressed gratitude to prosecutors and FBI agents for their work on the case.

Overall, the conviction of Lindberg and Gray highlights the consequences of attempting to influence regulators through bribery. The case serves as a reminder of the importance of upholding ethical standards in the insurance industry.