Federal prosecutors allege Lindberg, employees conspired to defraud N.C. Dept. of Insurance
WBTV Investigates: Top executive at Lindberg company has pleaded guilty
CHARLOTTE, N.C. (WBTV) - A top executive for billionaire insurance magnate Greg Lindberg has pleaded guilty to one count of conspiracy to defraud the United States.
Court documents unsealed on Thursday detailed the case against the executive, Christopher Herwig.
The U.S. Securities and Exchange Commission previously accused Herwig and Lindberg of “devising an elaborate scheme to defraud clients out of more than $75 million.”
The new criminal case unsealed Thursday by prosecutors in the Western District of North Carolina and Fraud Section of the Department of Justice’s Criminal Division does not identify Lindberg by name but refers to him as “owner” of the companies Herwig worked at.
According to the charging document, Herwig, Lindberg and a third employee worked together to devise and execute a complex financial scheme to move money between various insurance companies and other businesses that Lindberg owned.
The charging document claims the scheme was designed to ‘skim’ money from the various businesses to Lindberg’s benefit while concealing the scheme from regulators at the N.C. Department of Insurance.
Lindberg was previously indicted by federal prosecutors on charges related to trying to bribe N.C. Insurance Commissioner Mike Causey.
According to the charging documents unsealed Thursday, Lindberg skimmed $55 million from his companies through the scheme and used money from his insurance companies to purchase a mansion and a second property referred to as the ‘tennis facility properties.’
A lawyer for Herwig declined to comment on Thursday’s guilty plea.
WBTV’s attempts to reach a representative for Lindberg were unsuccessful as of press time.
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