Sunday, December 4, 2022

Lindberg insurance coverage corporations to be liquidated, NC court docket guidelines

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RALEIGH, N.C. — A North Carolina choose accredited a request from state regulators to liquidate a pair of insurance coverage corporations linked to Greg Lindberg, a North Carolina businessman accused of funneling money his insurance coverage corporations wanted to pay out annuities and different advantages into a bunch of different corporations he owned.

The choice comes greater than three years after the state began questioning the whereabouts of greater than $1 billion in insurance coverage firm property inside Lindberg’s empire.

Lindberg is the founding father of International Progress, a Durham-based agency with a posh community of insurance coverage corporations.

In Wake County Superior Court docket on Monday, a choose dominated that two of International Progress’s North Carolina-based insurance coverage corporations, Colorado Bankers Life Insurance coverage Firm and Bankers Life Insurance coverage Firm, would go into liquidation, thereby giving a number of policyholders an avenue to extra rapidly get a few of their a reimbursement.

In 2019, the North Carolina Division of Insurance coverage put a number of insurance coverage corporations Lindberg had acquired into “rehabilitation” amid issues over liquidity and talent to satisfy obligations to policyholders. The division this 12 months requested that the court docket liquidate the 2 North Carolina-based insurance coverage corporations.

“This is a vital step that can enable extra policyholders to get extra of their a reimbursement, sooner,” North Carolina Insurance coverage Commissioner Mike Causey stated in a press release.

International Progress didn’t instantly reply to a request for remark.

Funds are to be coated by the state warranty associations, which again the insurance coverage annuities largely at concern, very like the Federal Deposit Insurance coverage Corp. ensures financial institution accounts. The warranty restrict in North Carolina is $300,000.

Causey’s workplace remains to be ready on a signed choice from the choose however was knowledgeable of the choice on Monday, in response to Barry Smith, a spokesman for the state insurance coverage commissioner.

By way of a spokeswoman, Lindberg had beforehand criticized the state insurance coverage division’s liquidation petition, saying a purchaser was ready to buy the insurance coverage corporations, which might give policyholders their cash “in a matter of months.”
In 2020, Lindberg was convicted of bribery and conspiracy to commit wire fraud and sentenced to greater than seven years in federal jail. The conviction was overturned by a federal appeals court docket in June, saying the choose who tried the case had given unhealthy directions to the jury on a important ingredient of the case.
In Could, Wake County Superior Court docket Choose Graham Shirley, stated Lindberg defrauded his personal insurance coverage corporations to get a $40 million mortgage earlier than unraveling a rigorously negotiated settlement meant to unwind a $1 billion funding scheme.

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