North Carolina Regulator to Take Over Firms Owned by Embattled Insurance Investor

North Carolina’s insurance commissioner is taking over four insurance companies controlled by a businessman charged with trying to make political bribes.

A Raleigh-based state judge issued an order on June 27 allowing Insurance Commissioner Mike Causey to take over the companies that are controlled by Greg Lindberg and based in the state. Causey said in a legal filing that he had concerns about whether the companies had enough liquidity to meet obligations.

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

Lindberg was charged earlier this year with bribery and conspiracy charges alleging that he sought to make political bribes in exchange for easier oversight of his companies. Federal prosecutors alleged in April 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.

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, 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 Lindbergh. 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.