Insurance magnate Greg Lindberg has been central to various disputes and legal issues. This article will examine the key incidents plaguing Lindberg and his business ventures, including customer complaints, lawsuits, FINRA fines, barred advisors, financial advisor complaints, SEC actions, and fines.
Greg Lindberg, a North Carolina business and insurance tycoon, was convicted and sentenced to seven years and three months in prison for attempting to bribe an insurance commissioner with campaign contributions in order to secure more favorable regulatory treatment. He was indicted on a charge of alleged federal criminal conspiracy to bribe a public official.
Lindberg faced new criminal charges related to accusations of conspiring to skim large amounts of money from his own insurance companies. A Wake County judge ruled that Lindberg defrauded his own insurance companies to get a $40 million loan before unraveling a carefully negotiated agreement meant to unwind a $1 billion investment scheme.
Four insurers formerly owned by Lindberg face more than $1 billion shortfalls, and policyholders could take “severe losses” before a court-appointed receiver takes control. Testimony started in a civil lawsuit against Lindberg, who is now serving federal time for trying to bribe the state’s insurance commissioner.
If you or someone you know has been affected by the actions of Greg Lindberg or his businesses, our law firm, Haselkorn & Thibaut, is here to help. With over 50 years of experience, we have a 98% success rate in fighting for investors. Call 1-800-856-3352.
Northstar Financial Services (Bermuda) Liquidation
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Northstar Financial Services (Bermuda) was a financial services company based in Bermuda that offered various investment products and services, including fixed-rate, variable, and fixed-index annuities. The company catered to high-net-worth individuals, trusts, and institutions worldwide.
Months after Lindberg’s conviction, the Bermuda Monetary Authority issued proceedings against Northstar Financial Services (Bermuda), and the Supreme Court of Bermuda appointed joint provisional liquidators for the company.
After Greg Lindberg’s conviction, the Bermuda Monetary Authority initiated proceedings against Northstar Financial Services (Bermuda) on October 1, 2020. On March 26, 2021, the Supreme Court of Bermuda appointed joint provisional liquidators for the company, ultimately leading to the liquidation of the firm.
Investors who held accounts with Northstar Financial Services (Bermuda) have faced significant financial losses due to the company’s bankruptcy and liquidation. Haselkorn & Thibaut, a law firm specializing in investment loss recovery, has been investigating investor losses in light of the company’s Chapter 15 bankruptcy and the liquidation order by the Supreme Court of Bermuda.
If you have been affected by the collapse of Northstar Financial Services (Bermuda) or have suffered financial losses due to the company’s liquidation, it’s crucial to seek legal assistance. Our team at Haselkorn & Thibaut has extensive experience handling investment fraud cases and can help you explore your options for recovery. Contact us at 1-800-856-3352 or email us at [email protected] to schedule a free consultation and discuss your case.
Colorado Bankers Life Insurance Investors Are Furious
As reported by the WSJ, Mark Zintel, a 67-year-old retiree from Tampa, Florida, is outraged that his $700,000 in annuities have been frozen for nearly four years. He is among thousands who lost their money following the financial collapse of self-proclaimed billionaire Greg Lindberg.
Many people have passed away waiting for their money, while others may never see it again.
The situation has severely impacted Zintel’s retirement plans, forcing him and his wife to downsize their home significantly to save money. In contrast, Lindberg continues to live a luxurious life, owning a 10-bedroom mansion in Tampa and another large property in the area where he keeps his 214-foot yacht.
Lindberg, a 52-year-old CEO, was indicted on money laundering and insurance fraud charges, accused of using $2 billion in insured funds for loans to his private companies. He was released on bail and pleaded not guilty. Lindberg served 21 months in federal prison for bribery charges related to the insurance industry but had his conviction overturned on appeal. His new trial is set for November.
Federal charges were filed against Lindberg last month for allegedly stealing hundreds of thousands from his insurance companies through fraud. He entered a not-guilty plea.
North Carolina regulators took control of Lindberg’s insurance companies in 2019 and demanded liquidation, leading to a lengthy legal battle. Lindberg, originally from North Carolina, insists the companies are in good shape and plans to save them.
Zintel and others are frustrated that Lindberg uses their money for his legal defense, allowing him to maintain his lavish lifestyle while they make sacrifices. Court documents reveal that Lindberg spent millions on gifts for women and paid them to have children for him.
Around 70,000 annuity owners with access to $2.2 million cannot access their funds. Many are retired or risk-averse investors who purchased annuities in 2017 or 2018. Financial advisors promoted these products as safer, higher-yielding alternatives to bank CDs.
Stephen Round, a 71-year-old from Pomfret, Connecticut, called the situation “an unplanned disaster in retirement.” Stephen and his wife, Susan, 69, sold their house in 2017 to invest $100,000 in an annuity at Colorado Bankers Life. Citizens Bank representatives assured them that their funds would be safe and accessible in emergencies.
When they tried to withdraw money from the annuity in 2019 to make a down payment on a house, they were informed their account was frozen. They now have a mortgage and can’t afford as many vacations or dining experiences as they would like.
Citizens Bank, which sold annuities to many customers, referred to the situation as a “large-scale fraud” and offered assistance to those in need.
Industry-funded guaranty organizations can protect annuity owners up to $250,000. However, Lindberg opposes forcing insurers to liquidate, and consumers may not receive compensation.
Filings indicate that 1,600 annuity owners may not receive full compensation even if insurers collapse. They have collectively invested over $250 million beyond their state’s reimbursement limits. North Carolina officials hope that the ongoing legal proceedings against Lindberg may help cover at least part of this gap.
Liquidation is likely to be the third-most expensive type of life insurance loss in American history. The association estimates they may need to bill insurance companies for up to $1.5 billion to make the difference.
Lindberg claims he was bribed in the bribery case and that the latest indictment is an attempt to force him to plead guilty. According to Lindberg’s spokesperson, “Mr. Lindberg did nothing wrong,” and he has stated that he will win the battle or die trying.
Representatives for the insurers argue that regulators were biased against Lindberg and rejected their proposal to sell the business. They maintain that Lindberg “has always done what is right for policyholders.”
Federal authorities allege that Lindberg “skimmed” or siphoned money from insurance companies to pay for private jets, party organizers, a $620,000 European vacation, and a mansion in Raleigh, North Carolina, for his then-girlfriend.
Documents filed in civil proceedings against another insurer contesting Lindberg’s personal expenses reveal that the divorced executive paid substantial amounts for surrogate mothers to have children for him.
In November, Lindberg’s personal security chief, who testified in federal court, stated that Lindberg was a Tampa resident with five children under three years old and a sixth child. Court documents indicate that Lindberg currently uses one of two homes he purchased to homeschool his children.
His spokesperson insists that “no insurance company funds are being used for Mr. Lindberg’s personal expenses,” including costs associated with surrogacy and raising children.
In December, a North Carolina judge ordered the liquidation of two North Carolina insurers, which would have led to payments from the guaranty organization. The judge cited correspondence with policyholders, including an 81-year-old woman with lung disease and a woman with Parkinson’s disease.
Judge Lindberg stated that his alternative proposal to purchase the insurers on certain terms would delay policyholder relief and benefit the executive. He rejected the offer.
Lindberg appealed the decision, further delaying the liquidation process.
“Mr. Lindberg has a history of using the legal system to continually frustrate those who seek to hold him accountable,” said Wes Camden, a North Carolina regulator.
Citizens Bank’s branch in Rhode Island, where the Rounds claim they were assured their money was safe and accessible, described the situation as “large-scale fraud” but noted that Citizens Bank is assisting those most in need.
The North Carolina Department of Insurance is making annuity payments to heirs. Account holders can withdraw up to $15,000, with higher limits available in extreme cases.
Joanne Flynn, a 56-year-old single disabled mother from Medford, Massachusetts, is concerned about losing a significant portion of her life savings. Her state’s guaranty funds have set a limit of $250,000 for her Lindberg annuity, but she currently holds $738,000 in a Lindberg annuity.
Before retiring, Flynn worked for several years in customer service at a telephone company. “They assured me it was safe and secure,” she recalled. “I saved for retirement for 30 years. Now, my anxiety makes me feel physically ill.”
David Eastwood, a 67-year-old president of a Houston-based geotechnology engineering company, filed a lawsuit in state court alleging a local investment firm misled him into purchasing two annuities for $500,000 and $2 million by not informing him about Texas’s $250,000 cap.
Additionally, the lawsuit claims the company should have warned Eastwood about Lindberg’s mounting legal issues, giving him time to withdraw his funds before his insurers were seized in 2019. Eastwood said the stress kept him awake for weeks.
Oak Harvest Financial Group’s legal counsel stated, “the company remains open to addressing any allegations and presenting evidence that the company operated in the most transparent and professional manner.” The lawsuit has not yet been served on the firm.
Moreover, Lindberg’s Bermuda companies have sold financial products worth hundreds of millions of dollars to approximately 2,500 customers, many of whom are outside the United States and face liquidation. These products are unlikely to be covered by the U.S. safety net.
In 2016, Rosa Medina’s New York City-based husband passed away, leaving her $400,000 in his will.
The Brooklyn bank where her husband had done his banking advised Rosa Medina to invest the $400,000 inheritance in an annuity-like product from Northstar Financial Services (Bermuda) Ltd.
Fighting back tears, Medina recounted, “I wanted it to be safe. That’s a lot of money.”
However, as Northstar Financial Services faces liquidation, Medina’s investment is now at risk. Like many other customers, she faces the harsh reality that her funds may not be protected by the U.S. safety net.
The ongoing legal battles surrounding Lindberg’s insurance companies have left thousands of individuals struggling to access their annuities and investments. As the court proceedings continue, investors and policyholders are forced to make significant sacrifices and reassess their retirement plans.
Victims of this large-scale financial fraud are left hoping that the legal system will eventually hold Lindberg accountable for his actions and provide some form of compensation. Meanwhile, regulators and industry-funded guaranty organizations are working tirelessly to protect and reimburse policyholders to the best of their abilities.
For many, the consequences of the Lindberg case serve as a stark reminder of the importance of thorough research and caution when investing in financial products. It also highlights the need for greater oversight and regulation in the insurance industry to prevent such devastating losses from occurring in the future.
As the legal battles and investigations continue, policyholders like Rosa Medina, Joanne Flynn, and the Rounds face an uncertain future. They and thousands of others must grapple with the potential loss of their life savings and the impact on their retirement plans.
Despite the challenges, these individuals and their families persevere, hoping for a resolution that brings justice and financial relief. With the new trial set to begin in November, they await the outcome with cautious optimism, knowing that their lives have been irrevocably changed by the actions of one man and his complex web of insurance companies.
Investment Loss Recovery
Our offices are conveniently located in Florida, New York, North Carolina, Arizona, and Texas. We understand the complexities and nuances of investment fraud cases and are committed to helping our clients navigate the legal process to achieve the best possible outcome.
If you believe you’ve been a victim of investment fraud or have suffered financial losses due to the actions of Greg Lindberg or his businesses, don’t hesitate to contact us. We offer a free consultation to discuss your case and evaluate your options. Remember, there’s no recovery, no fee. We prioritize fighting for your rights and helping you reclaim your investment.
Call us now at 1-800-856-3352 or email us at [email protected] to schedule your free consultation and take the first step towards recovering your investment losses. Trust in our expertise and let us advocate for you in your fight against investment fraud.
