Lindberg Seeks Court Stay on $1.655B Asset Sale Amid Restitution Dispute
Greg Lindberg has requested a federal court to pause the sale of his assets linked to a $1.655 billion restitution order. Lindberg asserts that under federal restitution laws, he owes no money and claims an overpayment of approximately $1.27 billion. Last month, Lindberg was sentenced to 12 years for orchestrating a $2 billion fraud and attempting to bribe an insurance regulator in North Carolina.
District Judge Max O. Cogburn adopted a special master's report, ordering Lindberg to compensate with a $1.655 billion restitution to satisfy claims against his formerly owned life insurance companies. The order requires immediate payment and permits liens on Lindberg’s properties, standing as a federal judgment. This week, Lindberg filed a motion challenging the order, requesting a halt on the asset sales as the dispute is addressed.
His companies, once under his control in places like North Carolina and other jurisdictions, invested over $2 billion into loans and securities with his own affiliates, the prosecution has stated. These funds were allegedly laundered as part of Lindberg's scheme, which included forgiving over $125 million in personal loans from these companies and financing an expensive lifestyle.
Judge Cogburn accepted an argument from attorney Joseph Grier, leading to a $30 million increase over the original restitution figure of $1.625 billion. Lindberg's legal team argues that required offsets under federal law effectively void the obligation, showing a net overpayment of $1.24 billion. The motion contends that if asset liquidations proceed, it would permit recoveries exceeding actual victim losses, emphasizing that federal court decisions require actual losses to guide restitution awards.
In support of Lindberg, the defense claims that ongoing sales of his properties have led to decreased value due to decisions made after his removal from his companies. Under his management, these companies reportedly grew to a $3.4 billion valuation, generating over $300 million annually, figures that allegedly declined post-rehabilitation due to management decisions.
The motion references potential transactions from Ares Management and Oaktree Capital Management that could have provided funds to meet policyholder obligations. Lindberg seeks the cessation of further asset sales while objections to the restitution are considered, or alternatively, the return of specific asset types, claiming restitution obligations are satisfied. He also requests the return of eight minor affiliated entities previously deemed immaterial by the court and not slated for sale.