Greg Lindberg Sued by Puerto Rican Insurer for $524M

Civil Lawsuit is Latest Legal Trouble For Convicted Businessman, Greg Lindberg

Greg Lindberg, the owner of Northstar Financial Services (Bermuda), is the defendant in a lawsuit in which the plaintiff is demanding that he pay $524M to honor an agreement between two insurers. These insurers are PB Life and Annuity Company and Universal Life Insurance Company (ULICO), which is a Puerto Rico entity.

This is the latest legal woe to hit Lindberg, who is serving time in prison for wire fraud, bribery, and conspiracy to commit honest services fraud. The Durham, North Carolina resident is the founder of Eli Global, LLC and Global Bankers Insurance Group, which acquired:

All three are off-shore entities that have been the subject of investor claims seeking to recover financial losses. SSEK Law Firm is representing many of these investors in their FINRA arbitration cases against the broker-dealers that sold them these investments.

If you would like to explore your legal options related to losses involving Old Mutual (Bermuda), PB Investment Holdings, or Northstar Financial Services (Bermuda), call SSEK Law Firm at (800) 259-9010 today.

Lindberg Blames North Carolina’s Department of Insurance

In 2017, ULICO and PB Life made a reinsurance agreement in which Lindberg consented, under personal guarantee, to be accountable in the event that PB Life was unable to meet its obligations. By early 2020, the latter was accusing PB Life of lack of compliance.

ULICO contended that in order to satisfy the agreement, PB Life needed to deposit $524M into an account. Now that PB Life is refusing, despite an arbitration panel order, ULICO says that Lindberg needs to pay that money.

Responding to the complaint, Greg Lindberg is blaming the case on his ongoing dispute with North Carolina insurance commissioner, Mike Causey.

He is accusing the state’s Department of Insurance of making statements about his companies that are “lies.” Lindberg also argues that the lawsuit is a “downstream effect” of the harm caused to his company by the state’s regulatory action.

North Carolina’s insurance department seized control of the insurance companies under Lindberg’s Global Bankers in 2019 after Lindberg was indicted. It accused him of lending at least $2B from these insurers to other businesses.

Northstar Financial Services (Bermuda) Investors Looks to SSEK Law Firm To Pursue Damages

Lindberg is known for using his annuity and insurance companies to send money to other entities that he operated, including US-based special purpose vehicles.

That is likely what happened with Northstar Financial Services (Bermuda), which by September 2020 was estimated to have sustained an over $260M deficit and could report only $8M in assets. For Northstar investors, their best chance of recovering their losses is to go after the broker-dealers that sold them this off-shore entity.

Our investment fraud lawyers are representing several Northstar Financial Services (Bermuda) investors in their arbitration claims against the following brokerage firms:

SSEK Law Firm is fighting for customers that were unsuitably sold Northstar Financial Services (Bermuda) products, such as Global Advantage Series, Global VIP Elite, and Global Index Product among others. Call us at (800) 259-9010 today if you believe that you were unsuitably sold these investment products.