SEC Lawsuit Based on False and Politically Motivated Claims, Greg Lindberg Says

Mike Causey Refuses To Take Action On $1 Billion Rehab Exit Plan For North Carolina Insurers, Lindberg Says

DURHAM, N.C., Sept. 1, 2022 /PRNewswire/ -- A spokesperson for Greg Lindberg provided the following update regarding Monday's filing of civil litigation against Lindberg by the Securities and Exchange Commission.

After the United States Court of Appeals for the Fourth Circuit ruled that he was wrongfully convicted, Lindberg was recently released from federal prison after serving 633 days. He says he has "seen this movie before" with his fellow inmates. "The SEC makes all kinds of false allegations to try to get you to settle. They use high pressure tactics to try to roll over defendants and get them to admit things they never did. It's bullying pure and simple," Lindberg says.

According to Lindberg, his legal team supplied the SEC with millions of pages and documents explaining every transaction that the SEC had questions about. "The SEC claimed that the transactions were not disclosed yet they were supplied with emails showing the transactions were disclosed to virtually everyone on the management team of the North Carolina insurers, including the Chairman of the Board of the management company," Lindberg says.

Lindberg says that despite being clearly shown how the transactions resulted in more capital and surplus paid into the North Carolina insurers – expressly for the benefit of policyholders—the SEC claimed the transactions harmed policyholders.

Even after answering all their questions, the SEC continued to put on pressure, Lindberg says. He says that the SEC proposed a settlement in this case that would have required an admission of actions that he and his team never committed. "It was egregiously false and unacceptable," Lindberg says.

Lindberg says he and his team "did nothing wrong" and he intends "to prove it in court."

Lindberg says that after investing over $400 million into Global Growth insurance companies and never taking a penny of dividends, North Carolina Department of Insurance (NCDOI) forced the affected companies into rehabilitation.

On top of that, Global Growth, has presented a $1 billion plan to Mike Causey for Lindberg's North Carolina insurers to exit rehabilitation in less than a year. This plan will allow all policyholders to access all of their funds in less than a year, Lindberg says.  "Global Growth also has lenders and buyers waiting to fund transactions that will pay hundreds of millions of dollars to the North Carolina insurers," he says.

Instead, Lindberg says, Mike Causey is slowing down the rehabilitation process so that it will take longer for policyholders to access their benefits. "Mike Causey's agents are even refusing to attend a mediation with representatives of major policyholders of the affected insurance companies to discuss the rehab exit plan," Lindberg says.

According to Lindberg, "The root of this problem is politics. The SEC lawsuit does not change that." 

Lindberg notes that Mike Causey ran for the position of North Carolina Insurance Commissioner five times before winning by less than 1% of the vote. Lindberg says that he had supported Causey's opponent. Yet, immediately upon taking office, Lindberg's insurance companies stopped receiving fair and equitable regulation, Lindberg says.

After the government accused Lindberg of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds, the United States Court of Appeals for the Fourth Circuit unanimously agreed that his conviction violated his Constitutional rights and must be vacated.

Lindberg says he will "continue to fight until every policyholder is paid out and until every one of these false claims are dismissed." 

SOURCE Greg Lindberg

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