Tuesday, October 20, 2020

Insurance billionaire Greg Lindberg convicted in political bribery case

-

A major political donor was convicted Thursday of trying to bribe a North Carolina insurance regulator with millions of dollars in campaign funds in hopes of reducing scrutiny of his insurance business.

A federal jury found insurance magnate Greg Lindberg guilty on Thursday of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds, according to court documents. John Gray, who worked as a consultant for Lindberg, was also convicted of the two counts.

“The defendants devised an elaborate plan to make a hefty campaign contribution to an elected official to secure favorable action. This was not a lapse in judgment. It was a deliberate bribery attempt and a clear violation of federal law,” US Attorney Andrew Murray said in a statement after the verdict. “Public corruption is a threat to our way of life and if left unchecked it can tear apart the very fabric of our country.”

Another Lindberg associate charged in the case, John Palermo, was acquitted of the two counts.

- Advertisement -

Prosecutors have said Lindberg conspired to funnel money to Insurance Commissioner Mike Causey in exchange for special treatment. In particular, Lindberg sought to replace or work around a senior deputy commissioner within Causey’s office whose job it was to scrutinize Lindberg’s Global Bankers Insurance Group, according to court documents.

Causey, who wasn’t accused of wrongdoing, alerted authorities and cooperated in the case against Lindberg, an insurance and investment firm founder who has been among the state’s top political donors in recent years. Lindberg has given more than $5 million to state and federal candidates and committees since 2016, favoring Republicans but also giving to Democrats.

Federal prosecutors say Lindberg offered to funnel money for Causey’s 2020 reelection campaign in exchange for the removal of the official regulating his company. Lindberg directed the establishment of two independent expenditure committees funded with $1.5 million to support Causey’s campaign, according to a news release from prosecutors.

The case also ensnared former state GOP Chairman Robin Hayes, who previously pleaded guilty to lying to investigators. Prosecutors said in the news release that Hayes caused the transfer of another $250,000 in Lindberg contributions from the party’s coffers to benefit Causey.

- Advertisement -

Lindberg’s attorneys have argued that their client didn’t commit a crime and that he was entrapped by Causey’s participation with authorities. Defense attorneys wrote in a legal brief this week that prosecutors didn’t show at trial that any personnel moves discussed by their client amounted to “a formal exercise of governmental power,” which they say would have been needed to prove he was trying to bribe Causey.

Defense lawyers wrote in the filing Tuesday that “this case does not involve a hiring decision. It does not even involve a formal change in job titles or responsibilities among Department of Insurance employees. Rather, it involves an informal personnel move, or reassignment of tasks.”

MUST READ

Goldman to pay over $2 billion in DOJ’s 1MDB Probe

Goldman Sachs Group Inc. has reached a long-awaited pact with the U.S. Department of Justice to pay more than $2 billion for the bank’s...

Ex-managers of Security firm pleads guilty in Santa Clara County concealed gun permit bribery scandal

Two former managers of a Silicon Valley international security firm pleaded guilty Monday to charges related to a bribery scheme to obtain concealed firearms...

Ohio former House Speaker Larry Householder to stand for reelection amid bribery charges

Republican Rep. Larry Householder’s name will be on the ballot Election Day as the disgraced Ohio lawmaker intends to serve his district for another...

Billionaire Robert Smith to Pay $140 million after admitting to tax evasion

Billionaire Robert Smith will pay about $140 million and acknowledge wrongdoing to end a four-year U.S. tax investigation involving assets held in offshore tax...

Mexico’s ex-army chief arrested in US on charges of drug trafficking, money laundering

Former Mexican Defense Secretary Gen. Salvador Cienfuegos, who led the country’s armed forces for six years under then-President Enrique Peña Nieto, has been arrested...
Advertisement
Advertisement

Latest News

This Week

Billionaire Robert Smith to Pay $140 million after admitting to tax evasion

Billionaire Robert Smith will pay about $140 million and acknowledge wrongdoing to end a four-year U.S. tax investigation involving assets held in offshore tax...

Attorney General Dave Yost subpoenaed in Ohio bribery scandal

Federal officials investigating the House Bill 6 bribery scandal subpoenaed records from Attorney General Dave Yost’s office the day before arresting then-House Speaker Larry Householder and...

Medical device maker Merit Medical agrees to pay $18m to settle false claims

Medical device maker Merit Medical Systems Inc. (MMSI), of South Jordan, Utah, has agreed to pay $18 million to resolve allegations that the company...

Billionaire Robert Smith admits to evading taxes for 15 years

Billionaire Robert Smith has been hailed as a brilliant investor who built Vista Equity Partners into a private equity powerhouse and a generous philanthropist...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks