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North Carolina Supreme Court Lets Stand Greg Lindberg’s Civil Fraud Liability

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North Carolina Supreme Court Lets Stand Greg Lindberg’s Civil Fraud Liability


The North Carolina Supreme Court has decided that it will not, after all, review another legal filing by convicted insurance entrepreneur Greg Lindberg.

The Oct. 17 ruling lets stand a 2023 decision by the state Court of Appeals, which found that Lindberg and some of his affiliated companies were liable for fraud by misleading life insurance companies and a reinsurance firm that he once owned.

“We hold the trial court’s conclusions of law were supported by findings of fact based on competent evidence,” the appeals court judges wrote in the 2023 opinon.

The high court in December 2023 had agreed to review the appeal court’s order, at Lindberg’s behest. But after hearing oral arguments, the Supreme Court justices changed their minds, noting that “discretionary review was improvidently allowed by order on 13 December 2023.”

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No further explanation was offered. But with multiple criminal and civil proceedings stemming from the bribery conviction of and the regulatory crackdown on Lindberg, the appeal court’s 24-page opinion offers a valuable recount of some of the main aspects of the voluminous litigation involving Lindberg since 2016.

“Simply put, Lindberg created a scheme in which he caused $1.2 billon held for Plaintiffs’ policyholders to be invested into other non-insurance companies that he also owned or controlled,” the appellate judges wrote in the opinion in Southland National Insurance Corp., et al, vs. Greg Lindberg, et al.

Lindberg

It all began in 2014 under previous North Carolina Insurance Commissioner Wayne Goodwin, the court explained. Lindberg sought to re-domesticate Southland, Bankers Life Insurance Co., Colorado Bankers Life Insurance Co., and Southland National Reinsurance Corp. to North Carolina. Lindberg struck a special agreement with Goodwin, allowing Lindberg to break what has often been considered a cardinal rule for insurance companies – keeping adequate reserves on hand and under the control of the insurance carrier.

Instead, Lindberg was allowed to invest up to 40% of the insurance companies’ assets into affiliated business entities, and Lindberg soon invested hundreds of millions into non-insurance firms he owned or controlled.

In 2016, Mike Causey defeated Goodwin in the election and took over as insurance commissioner. Causey moved swiftly to reduce the cap on affiliated investments – back to 10%, the court explained.

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Lindberg in early 2018 attempted to bribe Causey with heavy campaign contributions, hoping for a relaxation of the rules as he struggled to “untangle his affiliated investments,” the appellate judges noted. Causey cooperated with federal authorities and wore a recording device during the meeting with Lindberg. Lindberg was convicted of bribery in 2020, had his conviction overturned due to improper jury instructions, then was convicted again in 2024. He’s still awaiting sentencing.

Meanwhile, in late 2018, while Lindberg’s prosecution was pending, it became obvious that Lindberg’s affiliated companies would not meet their obligations to restore funds to cover the life insurers’ policyholder liabilities. NCDOI placed Southland and the other insurance companies under administrative supervision. An out-of-state consultant was put in charge, and deadlines were set for repayment of the assets.

With it becoming clear that Lindberg’s affiliated firms would not meet the deadlines, Southland and the other insurance companies signed a memorandum of understanding and other agreements, restucturing the financial obligations, providing a $40 million line of credit to a company owned by Lindberg, and making the affiliated firms subsidiaries of a newly created holding company, the court explained.

In 2019, Lindberg’s affiliated firms failed to meet the restructuring agreements’ goals and failed to make the affiliated businesses part of the holding company. Southland filed suit, charging fraud.

The trial court in Wake County largely agreed, and the appeals court upheld the lower court’s ruling.

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“Defendants attempt to convince this Court that the MOU’s main purpose was not only to rehabilitate Plaintiffs’ companies, but to ensure Lindberg would continue to benefit from the overall transaction,” the appellate judges wrote. “This argument ignores another of Defendants’ motivations: to make money using capital provided by hardworking, North Carolina policyholders.”

Lindberg’s team claimed that the memorandum of understanding was unenforceable. The appeals court didn’t buy that argument.

“Defendants and Lindberg have enjoyed the benefit of millions of dollars of debt relief provided by Plaintiffs, yet continue to claim the MOU is unenforceable,” the court wrote.

On other arguments the court was equally critical of Lindberg’s assertions.

“Put plainly, Defendants made representations about their ability to perform under the MOU, then just two weeks before performance was due, cited those exact representations as the reason why they could not perform,” Judge April Wood wrote in the opinion.

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And because Lindberg understood the intricacies of the affiliated businesses’ structures, he knew that performance under the MOU was impossible, “yet made representations that induced Plaintiffs to enter into the contract. For those reasons, we hold the trial court did not err in finding Defendants’ actions satisfied the elements of fraud.”

The appeals court remanded part of the case to the lower court to determine remedies available to Southland and the other plaintiff insurance companies.

In November 2024, Lindberg pleaded guilty to $2 billion in fraud in a related prosecution. In July of this year, a federal judge approved a plan to distribute $318 million from the sale of a Lindberg-owned software firm to the life insurance policyholders. In early October, the judge allowed the release of policyholder information so that a special master in the case could finally begin distributing funds to the victims of the fraud.

Read more about Lindberg’s bribery conviction here, and other court rulings here.

Topics
Fraud
North Carolina
Liability

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North Carolina

Statewide tornado drill has NC schools and workplaces practicing safety

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Statewide tornado drill has NC schools and workplaces practicing safety


Wednesday, March 4, 2026 6:41PM

NC schools and businesses encouraged to practice tornado safety

RALEIGH, N.C. (WTVD) — North Carolina schools and businesses took part in a statewide tornado drill Wednesday morning as part of Severe Weather Awareness Week.

The National Weather Service led the drill at 9:30 a.m., broadcasting it on NOAA Weather Radio and the Emergency Alert System. Schools, workplaces and households across the state were encouraged to join in.

The National Weather Service didn’t issue a follow up alert to mark the end of the drill. Instead, each school or business wrapped up once they felt they had practiced the procedures thoroughly.

Wednesday’s drill also replaced the regular weekly NOAA Weather Radio test.

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SEE | New warning for parents amid new ‘fire-breathing’ social media trend

Make sure to download the ABC 11 Mobile App ABC11 North Carolina Apps for Connected TV, Mobile News, Echo

Copyright © 2026 WTVD-TV. All Rights Reserved.



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North Carolina Rep. Valerie Foushee holds narrow lead over challenger Nida Allam

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North Carolina Rep. Valerie Foushee holds narrow lead over challenger Nida Allam


Nida Allam in 2022; Rep. Valerie Foushee (D-NC) in 2025.

Jonathan Drake/Reuters; Andrew Harnik/Getty Images


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Jonathan Drake/Reuters; Andrew Harnik/Getty Images

Incumbent Rep. Valerie Foushee holds a narrow lead over challenger Nida Allam in the Democratic primary for North Carolina’s 4th Congressional district as ballots continue to be counted.

In a race seen as an early test of whether Democratic voters desire generational change within the party, Foushee holds a lead of just over 1,000 votes with 99% of results in so far, according to the Associated Press.

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Under state law, provisional votes will be counted in the coming days in a district that includes Durham and Chapel Hill. If the election results end up within a 1% margin, Allam could request a recount.

Successfully ousting an incumbent lawmaker is often extremely difficult and rare. However, there have been recent upsets in races as some voters are calling for new leaders and several sitting members of Congress face primary challengers this cycle.

Allam, a 32-year-old Durham County Commissioner, is running to the left of Foushee, 69, framing her candidacy as part of a broader rejection of longtime Democratic norms.

On the campaign trail, Allam ran on an anti-establishment message, pledging to be a stronger fighter than Foushee in Congress, both in standing up against President Trump’s agenda and when pushing for more ambitious policy.

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“North Carolina is a purple state that often gets labeled red, but we’re not a red state,” she told NPR in an interview last month, emphasizing the need to address affordability concerns. “We are a state of working-class folks who just want their elected officials to champion the issues that are impacting them.”

She drew a contrast with the congresswoman on immigration, voicing support for abolishing U.S. Immigration and Customs Enforcement. Foushee has declined to go that far, advocating instead for ICE to be defunded and for broader reforms to the federal immigration system.

Allam also clashed with Foushee over U.S. policy towards Israel. As a vocal opponent of Israel’s war in Gaza, Allam swore off campaign donations from pro-Israel lobbying groups, such as AIPAC, and repeatedly criticized Foushee for previously accepting such funds.

Though Foushee announced last year that she would not accept AIPAC donations this cycle, she and Allam continued to spar over the broader role of outside spending in the race.

Their matchup comes four years after the candidates first squared off in 2022, when Allam lost to Foushee in what became the most expensive primary in the state’s history, with outside groups spending more than $3.8 million.

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However, this year is poised to break that record. Outside groups have reported spending more than $4.4 million on the primary matchup, according to Federal Election Commission filings.

WUNC’s Colin Campbell contributed to this report.



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Building for tomorrow’s storms: North Carolina updates flood strategy

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Building for tomorrow’s storms: North Carolina updates flood strategy


North Carolina is beginning to plan for floods that have not happened yet.

State officials this year advanced the next phase of the state’s Flood Resiliency Blueprint, incorporating updated modeling that factors in heavier rainfall, future development and sea-level rise — a shift away from relying solely on historic data and FEMA’s regulatory maps.

“We can make decisions and plan for that future, not just the exposure to flooding that we see now,” said Stuart Brown, who manages the Flood Resiliency Blueprint for the North Carolina Department of Environmental Quality.

For a state that has endured record-breaking rainfall from Hurricane Helene in the mountains to Tropical Storm Chantal in the Triangle, the move reflects a growing recognition: past standards no longer capture present risk.

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Beyond outdated flood lines

Multiple North Carolina studies have found that between 43% and 60% of flood damage occurs outside FEMA’s regulatory flood zones. Those maps shape insurance requirements and local zoning decisions, yet they are largely based on historical rainfall data.

“A lot of the regulatory floodplains really haven’t kept up with what we know is happening,” said Elizabeth Losos, executive in residence at Duke University’s Nicholas Institute for Energy, Environment and Sustainability.

Climate data show rainfall intensity in the Triangle has increased by about 21% since 1970. Warmer air holds more moisture, fueling heavier downpours that overwhelm drainage systems designed for a different climate.

“Fixing what we know is flooding right now is good,” Losos said. “It’s better than nothing, but it’s definitely not enough.”

Brown said the blueprint incorporates projections for future precipitation and development — a critical factor in one of the fastest-growing states in the country.

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“Development can be an issue for flooding in two categories,” Brown said. “One is when that development is occurring in areas that are flood prone. The other is when that development is done in ways that don’t account for the additional stormwater that will be produced.”

Thousands of projects, limited dollars

Unlike states that rely on massive levee systems, North Carolina’s flood risk is scattered across river basins, coastal plains and rapidly developing suburbs. Brown said resilience here will require thousands of localized projects.

“We were asked by the General Assembly to provide specific, actionable projects,” Brown said. “We want to know what specific geography and what specific action is proposed.”

That planning push comes as federal support for flood research and mitigation is shrinking.

The Trump administration has proposed a roughly 30% cut to NOAA’s 2026 budget, targeting climate research and ocean services that provide the rainfall and coastal data states use to model flood risk. At FEMA, the administration has cut staff by more than 6%, reduced funding for local hazard mitigation projects and added new approval layers for grants.

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For North Carolina, that means fewer dollars for buyouts, drainage upgrades and flood control projects — and less federal data to guide long-term planning — just as the state is trying to build a more forward-looking flood strategy.

Brown said North Carolina is trying to “leverage the limited dollars that we have in the state with any federal sources that are available” and embed resilience into routine investments in transportation, water treatment and conservation.

“Funding is always going to be an issue,” Brown said.

The policy gap

Researchers have long argued that resilience investments save money. Studies show every $1 spent on mitigation can yield $4 to $13 in avoided losses.

“The problem is that the policies don’t align the people who pay the cost with the people who get the benefit,” Losos said.

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A developer may not directly benefit from downstream flood reduction. A town may shoulder upfront infrastructure costs while insurers, neighboring communities or future taxpayers capture part of the savings.

Without policy changes that align costs and benefits, resilience can remain politically and financially difficult.

“In the most severe cases, there are some communities that will have to eventually abandon if they don’t begin to think about how they can adapt to these conditions,” Losos said.

North Carolina now has updated tools to better measure future flood risk. Whether the state can secure stable federal support — and align its own policies with the risks ahead — will determine how effectively communities prepare for the next storm rather than recover from the last one.

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