North Carolina insurance magnate found guilty in political corruption case

CHARLOTTE, N.C. — One of North Carolina’s largest political donors in recent years and an associate were found guilty Thursday on corruption-related charges nearly a year after a federal indictment was filed against them.

A jury found Greg E. Lindberg, an insurance company magnate and investor and Lindberg consultant John Gray guilty of trying to bribe North Carolina Insurance Commissioner Mike Causey to get Causey to replace a top regulator in his office.

The same jury found another defendant, former Lindberg company employee John Palermo, not guilty.

Federal prosecutors contended the three participated in the scheme to bribe Causey with up to $2 million in campaign money so scrutiny of Lindberg’s businesses would ease.

Palermo’s attorneys had argued there was no evidence tying him to the bribery scheme.

Causey, a Republican, told law enforcement voluntarily about what was happening and agreed to cooperate with authorities, according to the U.S. Attorney’s Office. Causey had recorded meetings with Lindberg and the other defendants.

The defendants’ attorneys wrote in court filings that their clients’ actions weren’t criminal and that Causey tried to entrap them.

Causey released a statement after the verdict Thursday.

“When I took office, I swore an oath to support and maintain the laws of this State and to faithfully discharge the duties of my office as Commissioner of Insurance. I also committed to rooting out insurance fraud and corruption wherever it may be, and to prosecute such fraud to the fullest extent of the law. It is with these guiding principles that I agreed to cooperate with the federal authorities in their investigation. Since I took office in January 2017, I have worked with our professional staff to ensure that all companies are treated fairly and consistently, and that the policyholders of our State are protected. The verdict handed down today by the jury emphasizes this point and shows that the Office of the Commissioner of Insurance is not for sale. I appreciate all the work that the U.S. Attorney’s Office and the Federal Bureau of Investigation have put into this case," Causey said.

A fourth person indicted — former state GOP chairman and ex-U.S. Rep. Robin Hayes — accepted a plea agreement late last year and agreed to help prosecutors.

Lindberg gave more than $5 million since 2016 to North Carolina candidate and party committees and independent expenditure groups.