Showing posts with label bribery. Show all posts
Showing posts with label bribery. Show all posts

Friday, August 21, 2020

Light Up The Network: Gary Lindberg Sentenced For The 2020 RNC Convention

Such a shame Gary Lindberg will be unavailable as a speaker for the Republican National Convention 2020.

Perhaps, Cardinal Dolan can include him in his opening prayer.

https://www.dnb.com/business-directory/company-profiles.eli_global_llc.9f3f3b24e4a3c70ff83e2fb57725e0e8.html

DOJ: Former North Carolina State Political Party Chairman Previously Pleaded Guilty to Lying to the FBI in Connection with the Bribery Scheme


#maytheheavensfall

Founder and Chairman of a Multinational Investment Company and a Company Consultant Convicted of Bribery and Public Corruption are Sentenced to Prison

The founder and chairman of a multinational investment company and a company consultant were sentenced to prison today for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions. 
Greg E. Lindberg, 50, of Durham, North Carolina, the founder and chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG), was sentenced to 87 months in prison and three years of supervised release.  Lindberg’s consultant, John D. Gray, 70, of Chapel Hill, North Carolina, was ordered to serve 30 months in prison, followed by two years of supervised release.  Lindberg and Gray were also ordered to pay forfeiture in the amount approximately $1.45 million held in accounts established by the defendants for the purpose of funneling the bribe payments.
On March 5, 2020, a federal jury convicted Lindberg and Gray of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds following an approximately three-week trial.  U.S. District Judge Max O. Cogburn Jr. presided over the trial and today’s sentencing hearings.
Co-defendant, Robert Cannon Hayes, 74, of Concord, North Carolina, was also sentenced today to a one-year probationary term.  Hayes previously pleaded guilty to making false statements to the FBI and agreed to cooperate with the government’s investigation.
“When Greg Lindberg and John Gray offered millions of dollars in bribes to the North Carolina Insurance Commissioner, they referred to their elaborately corrupt scheme as a ‘win-win’ – unaware that the FBI was watching and listening,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “Today, both men have been held accountable for their crimes, and their sentences underscore the Department of Justice's unyielding commitment to rooting out corruption wherever we find it.”
“Lindberg and his accomplices, driven by greed, devised an extensive political bribery scheme to illegally funnel millions of dollars to an elected official for the benefit of Lindberg’s business interests.  To this day, Lindberg and Gray remain unremorseful and refuse to accept responsibility for their criminal actions.  The severity of their brazen conduct is reflected in the Court’s sentence,” said U.S. Attorney Andrew Murray for the Western District of North Carolina.  “Bribery of a public official is far from a victimless crime.  It is our duty to the American people to stop bad actors with deep pockets and unscrupulous intentions from wrecking the foundation on which this country proudly stands.  To those that greedily seek to line their own pockets through deceit and fraud, I offer the following advice: Keep a travel toothbrush handy.”
“When the prison bars close behind Mr. Lindberg and Mr. Gray, they will hear the sound of justice, loud and clear,” said Special Agent in Charge John Strong of the FBI’s Charlotte Field Office.  “The FBI will root out any and all forms of public corruption.  We remain committed to ensuring those who attempt to interfere with the integrity of our democratic process pay the price.”
According to filed court documents, evidence presented at trial, and today’s sentencing hearings, in January 2018, the elected Commissioner (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to the FBI about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated. 
According to evidence presented at trial, from April 2017 to August 2018, Lindberg and Gray engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG.  Trial evidence established that Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG. 
According to trial evidence, Lindberg, Gray and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and others, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously.  In order to conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set-up to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner.  In addition, at Lindberg and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was chairman, to the Commissioner’s re-election campaign.
According to admissions Hayes made in connection with his guilty plea, on or about Aug. 28, 2018, Hayes falsely stated to FBI agents that he had never spoken with the NCDOI Commissioner about personnel or personnel problems at NCDOI, or about Lindberg or Gray.  Hayes further admitted that, at the time he made the materially false statements, Hayes knew that it was unlawful to lie to the FBI, and knew that his statements were false because Hayes had in fact spoken with the NCDOI Commissioner about Lindberg and Gray, and about Lindberg’s request that the Commissioner move certain personnel within NCDOI.  
The FBI’s Charlotte field office investigated the case.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William T. Stetzer and Dana O. Washington of the U.S. Attorney’s Office for the Western District of North Carolina prosecuted the case.

Voting is beautiful, be beautiful ~ vote.©

DOJ: Puerto Rico Legislator and Two Capitol Employees Indicted for Theft and Bribery

#maytheheavensfall


On Wednesday, a federal grand jury in the District of Puerto Rico returned an eight-count indictment against legislator Nelson Del Valle Colon (Del Valle Colon), a member of the Puerto Rico House of Representatives, as well as two of his employees, Nickolle Santos-Estrada (Santos) and her mother Mildred Estrada-Rojas (Estrada), for their alleged participation in a multi-year theft, bribery, and kickback conspiracy.

The indictment charges Del Valle Colon, Santos, and Estrada with conspiracy as well as theft, bribery, and kickbacks concerning programs receiving federal funds.  Del Valle Colon is facing two additional counts of honest services wire fraud, and one count of obstruction of justice for destroying data on his cell phone.

According to the allegations in the indictment, in early 2017, Del Valle Colon fraudulently inflated the salaries of Santos, Estrada, and another individual for no legitimate reason, and corruptly agreed that out of their inflated paychecks, the employees would keep a portion for themselves and kick back the other portion, generally between approximately $500 and $2,000, to Del Valle Colon.

“Puerto Rico legislator Nelson Del Valle Colon and his employees allegedly embarked on a years-long conspiracy to enrich themselves by embezzling funds and using bribes and kickbacks to defraud the Commonwealth of Puerto Rico,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “As this case shows, the Department of Justice and our law enforcement partners are committed to holding elected officials accountable for corrupt conduct.”

“Public corruption destroys the trust we have in our elected officials, which is essential for democracy to thrive,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico.  “In this case, the citizens of Puerto Rico were betrayed by legislator Del Valle Colon, an elected official who abused his position for personal gain, and who must be held accountable for violating one of the basic tenets of public trust, that is, serving his constituents with integrity and honesty. The U.S. Attorney’s Office, and our law enforcement partners, will continue to relentlessly investigate and prosecute anyone who tries to undermine our system of government.”

“As we have said numerous times, public corruption is and will continue to be a priority for the FBI,” said Special Agent in Charge Rafael Riviere of the FBI’s San Juan Field Office.  “May today be a reminder that we will not tolerate corruption and we will act swiftly to remove those who would violate public trust.  Special thanks to our DOJ partners for their support of our mission.”

The indictment further alleges that the defendants used a variety of means to transfer the kickbacks to Del Valle Colon.  Allegedly, Santos, Estrada, and the other individual would sometimes transfer cash by hand to Del Valle Colon.  The defendants would also sometimes transfer kickbacks in approximately $500 increments to Del Valle Colon using ATH Móvil, a mobile phone application that allows individuals who bank at certain financial institutions to send money to each other through an interface on their cell phones.

The honest services wire fraud counts against Del Valle Colon involve WhatsApp messages sent by Del Valle Colon that furthered the scheme to defraud and deprive the citizens and the government of the Commonwealth of Puerto Rico of their right to Del Valle Colon’s honest services.

The indictment also charges Del Valle Colon with obstruction of justice.  After becoming aware of the investigation into illegal activities at his legislative office in or about July 2020, Del Valle Colon deleted data on his cell phone including communications between himself and Santos, and between himself and Estrada.

The indictment is the result of an ongoing investigation by the FBI and is being prosecuted by Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Voting is beautiful, be beautiful ~ vote.©

Thursday, July 30, 2020

DOJ: Three Tribal Officials Charged in Bribery Scheme


Two current tribal government officials and one former tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) were charged by criminal complaint unsealed today for their alleged acceptance of bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation (FBIR), which is the home of the MHA Nation.  

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Drew H. Wrigley for the District of North Dakota, and Acting Special Agent in Charge Aubree M. Schwartz of the FBI’s Minneapolis Field Office made the announcement.

Randall Jude Phelan, 55, of Mandaree, North Dakota, and Delvin Reeves, 52, of Watford City, North Dakota, were charged in complaints supported by one affidavit, while Frank Charles Grady, 52, of Hardin, Montana, was charged in a complaint supported by a second affidavit.  All three defendants were charged in the District of North Dakota with one count of conspiracy and one count of federal programs bribery.  Phelan and Reeves made their initial appearances in the District of North Dakota before U.S. Magistrate Judge Alice R. Senechal today.  Grady made his initial appearance in the District of Montana before U.S. Magistrate Judge Timothy J. Cavan today.

According to the affidavits in support of the complaints against them, Phelan has been a representative on the Tribal Business Council, the elected governing body of the MHA Nation, since approximately November 2012, and Reeves is a paid employee of the tribal government.  Grady was a Tribal Business Council representative from approximately November 2014 until November 2018. 

According to the affidavit in support of the complaints against them, Phelan and Reeves solicited and accepted bribes and kickbacks from the contractor in connection with his business’s operation on the FBIR beginning in approximately 2013 and continuing through 2020.  The complaint alleges that, in exchange for the payments, Phelan and Reeves used their official positions to help the contractor’s business, including by awarding contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other tribal officials, and facilitating the submission and payment of fraudulent invoices. 

The complaint against Grady alleges that he solicited and accepted bribes and kickbacks beginning in approximately January 2016 and continuing through September 2017.  The affidavit in support of the complaint alleges that Grady used his official position to help the contractor’s business, including by awarding contracts, pressuring other construction companies to award subcontracting work, advocating for the contractor with other tribal officials, and facilitating the submission and payment of fraudulent invoices.  The complaints allege that the defendants each accepted hundreds of thousands of dollars in bribes and kickbacks.

A criminal complaint is merely an accusation, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI investigated the case.  Trial Attorney Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section is prosecuting the case with the assistance of the U.S. Attorney’s Office for the District of North Dakota. 

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.


Voting is beautiful, be beautiful ~ vote.©

Saturday, July 18, 2020

Gabe Leland & Another Legal Jurisdictional Rescheduling

So, the cases of Gabe Leland go from DOJ, to Wayne County, to Macomb County, bifurcated to State, where DOJ still holds the parental authority of the legal matter in a superseding action.

I may have skipped a few jurisdictional machinations, but I might have to visually map this messy out.

Here's hoping I did not piss off anyone in the City of Detroit because they shut off my water since I got a $600 sewage bill this month, because it rained and another property tax foreclosure notice which no one will provide me constituency services.

I wonder why?

Maybe it is because I live in District 7, or something like that.

#maytheheavensfall

Detroit City Councilman Gabe Leland charged with misconduct in office, a felony

The cloud over Gabe Leland got bigger and darker today as the Monroe County prosecutor charged the Detroit city councilman with misconduct in office.

The felony charge comes a month before Leland was scheduled to go to trial in federal court on three counts of bribery for allegedly demanding $15,000 from Bob Carmack to help the businessman in a dispute with the city.

The misconduct in office charge, which carries a maximum penalty of five years in prison and a fine of $10,000, indicates that Leland's fate will be decided in state court rather than U.S. District Court. The charge was brought by Monroe County Prosecutor Michael Roehrig after U.S. Attorney Matthew Schneider asked Wayne County Prosecutor Kym Worthy to take the case. Worthy cited a conflict of interest in any case involving Carmack, who is suing county officials, so the Michigan Attorney General's office assigned the case to Monroe County.

The Free Press reported in May that Roehrig's office was reviewing the case.

Roehrig would not discuss whether his office has been working with federal officials, beyond saying: "It's fair to say we have had discussions with the U.S. Attorney’s office regarding this matter.”

Roehrig also would not discuss the details of the case, but the charging document alleges that Leland "accepted payments of money to influence his vote on certain city matters over the course of his employment as a city councilman.”

The Monroe County Prosecutor alleges that Leland's misconduct occurred between Jan. 1, 2017 and Jan. 31, 2018.

Leland was indicted on three counts of bribery on Oct. 4, 2018, after a federal grand jury determined he demanded $15,000 in May 2017 from Carmack. Leland, who represents District 7 on the city’s west side, continues to serve on the City Council without any restrictions.

Steve Fishman, Leland’s attorney, said Friday: "The sky is actually brighter and more blue for Mr. Leland today because we have reached an agreement to resolve his case in state court.

"He made a big mistake by accepting a campaign contribution in cash which is against the law in Michigan," Fishman added. "He accepts responsibility for his actions and deeply regrets it."

Leland did not return a call seeking comment.

On Oct. 9, 2018, after the first full council meeting since his indictment, Leland met with reporters outside the council chambers on the 13th floor of City Hall.

“I’m innocent until proven guilty and that’s my statement until further comment,” he said.

Six days later, Leland was arraigned in U.S. District Court, one block away from the Caucus Club where the feds say he met with Carmack. As he walked away from the courthouse, Leland said: “I’m innocent, and I’m looking forward to trial.”

Fishman had vowed to take the case to trial, telling reporters after Leland's arraignment: "Most cases over here — 95% — result in a guilty plea.

"This one won't."

Fishman planned to attack Carmack's credibility. Carmack is currently awaiting trial on allegations that he stole city land and sold it for $1 million. Carmack denies any wrongdoing, and the district court judge who bound the case over for trial in Wayne County Circuit Court did so after questioning the strength of the prosecution's case.

But there were signs the case might never go to trial, including records filed in federal court this year signed by prosecutors and Fishman that said: “the parties have discussed a resolution of the matter and need additional time to determine whether a resolution is possible.”

It is unlikely the federal case would proceed if Leland reaches a plea deal with Roehrig's office. Because the charge was filed Friday, there is no timeline yet for the state case. It is unlikely Leland would stand trial in state and federal court at the same time.

There are several reasons Leland may prefer to resolve the case in state court. The maximum sentence for the misconduct in office charge is half the 10 years Leland faces if convicted of bribery in federal court. There is also just one charge in state court, instead of the three counts he faces in federal court. If convicted, multiple guilty counts would likely increase Leland's sentence. And Leland may eventually be able to get a single felony conviction removed from his record, whereas multiple counts would be there permanently.

More: Duggan will try to get Detroit City Council to pass new $250M blight bond deal — again

More: Detroit renters facing eviction get $6 million in aid to help stay in their home

Cash for the councilman
Leland’s troubles date back to May 12, 2017, when prosecutors say Leland spoke to Carmack about land on Michigan Avenue that Carmack and the city each claimed. Leland, who was chairman of the City Council’s Planning and Economic Development Committee, stopped the city from selling the land.

“I held it up again,” Leland allegedly told Carmack during a phone call. “Yeah, yeah, it stayed, stayed right, right in committee, brother.”

Later in the call, federal prosecutors say Leland told Carmack: “You didn’t show up to my fundraiser.”

Four days later, the feds say, Leland met Carmack and offered to hold up or prevent the city from selling the land in return for $15,000.


“I should ask for 30, but I’m nice to you,” Leland said, according to the indictment.

On June 8, Leland was the only member of the Planning and Economic Development Committee to vote against putting the sale of the property on the City Council’s agenda.

When the sale went before the entire council on June 13, Leland was the only member to vote against selling it.

On Aug. 2, the feds say, Leland and a part-time campaign worker, Elisa Grubbs, met with Carmack at his collision shop on Michigan Avenue.

What Leland and Grubbs didn’t know was that Carmack was recording their encounters.

Carmack later told a reporter he was upset with Leland because the councilman hit him up for cash at the same time Carmack was caring for his dying father.

So Carmack went to the FBI.

“I put a wire on. I wore it, had a meeting with Mr. Leland, and Mr. Leland asked me would I raise some money for his campaign, and he asked me would I give him $15,000 if he didn’t sell that lot,” Carmack told the reporter.

Fishman told the reporter Carmack's allegation was "a blatant lie" with "absolutely no basis for it in fact."

On Aug. 4, prosecutors say, Leland told Carmack to give Grubbs the money. Carmack said he gave Grubbs $7,500 he got from the feds.

“I asked her, I said: ‘This is for Gabe Leland?’ ” Carmack later told a reporter. “She goes, ‘Yes, it’s for Gabe Leland. It definitely ain’t for me.’ ”

The feds say Grubbs gave the money to Leland later that day.

Five days later, according to the indictment, Leland met Carmack downtown at the Caucus Club restaurant and said he got the $7,500, but not the second half of the deal. Carmack said he told Leland he didn’t know Grubbs.

“No, but you can f***in’ trust me,” Leland replied, according to the indictment. “That’s all that matters.”

In June 2018 — nearly a year after Leland allegedly accepted the marked money from Carmack, but months before he would be indicted — Leland was questioned under oath during a deposition stemming from a lawsuit Carmack filed.

Fishman represented Leland at the deposition, interrupting the questioning to tell Carmack’s attorney: “I’m advising Mr. Leland to assert his Fifth Amendment privilege for any questions having to do with Robert Carmack.”

Nevertheless, Carmack’s attorney asked Leland: “At any time in 2017 did you extort up to $15,000 from Mr. Robert Carmack?”

Leland replied: “I refuse to answer the question based on my Fifth Amendment rights.”


The Fifth Amendment to the U.S. Constitution says a person cannot be compelled to testify against their interest or provide information that may incriminate them.

Leland declined to answer any questions about whether he was being investigated by the feds.

On Oct. 3, 2018, the feds charged Grubbs with conspiracy to help “City Official X” solicit a bribe.

Any question about the identity of “City Official X” was dispelled the next day, when Leland was indicted on bribery and conspiracy charges.

"A sitting member of the Detroit City Council engaging in bribery is an extreme breach of the trust of the people of Detroit that badly undermines their faith in local government," Schneider, the U.S. attorney, said in a statement released that day. "As was starkly demonstrated by the prosecution of former Detroit Mayor Kwame Kilpatrick and several corrupt members of his administration, federal law enforcement is dedicated to rooting out and severely punishing corruption at every level of city governance.”

At the time, Mayor Mike Duggan called the allegations "deeply upsetting and disappointing."

"This is a very unfortunate development for our city at a time when so many things have been going right," Duggan said in a statement. "For now, we just have to let our justice system do its work."

The City Council released a joint statement the day after Leland was indicted, saying it will not affect its work and that the body "will continue to do our jobs, as elected by the citizens of this city."

On Oct. 9, after the first full council meeting since his indictment, Leland met with reporters outside the council chambers on the 13th floor of City Hall.

“I’m innocent until proven guilty and that’s my statement until further comment,” he said.

Six days later, Leland was arraigned in the federal courthouse, one block away from the Caucus Club where the feds say he met with Carmack. As he walked away from the courthouse, Leland said: “I’m innocent, and I’m looking forward to trial.”

If Leland pleads guilty to a felony charge, it would end his career on City Council.

Under the Detroit City Charter, an elected official who “engages in official misconduct,” “corrupt conduct in office” or pleads to “or is convicted of a felony while holding office” forfeits their office.

Neither the City Council nor the city’s Board of Ethics has taken any action to remove Leland or limit his authority.

Voting is beautiful, be beautiful ~ vote.©

Wednesday, July 1, 2020

Prelude To Detroit: FBI Arrest Toledo City Council Members

Waiting for Detroit....

#mayheavensfall


Federal agents charge four Toledo city council members in bribery probe

The FBI has arrested multiple Toledo city council members accused of taking cash in exchange for votes during what is described in court records as a years-long, sweeping bribery scandal involving some of the city’s highest elected officials.

City council members Tyrone Riley, Yvonne Harper, Larry Sykes, and Gary Johnson are all charged in federal court with accepting bribe payments for official acts and extortion, according to criminal complaints filed Tuesday. Keith Mitchell, an attorney who is accused of funneling bribes to Ms. Harper, also faces bribery and extortion charges. Ms. Harper is charged as well with interstate communications with intent to extort.



There was no answer at the Grand Avenue home listed for Keith Mitchell, an attorney, in Toledo on Tuesday. The FBI has taken multiple city councilmen in custody in a bribery case.

Attorney facing charges has history of involvement in council issues
FBI Special Agent Eric Smith in a Tuesday afternoon news conference said the councilmen were arrested without incident earlier in the day, while authorities are “actively seeking the whereabouts of Keith Mitchell.”

He said the councilmen committed a “fundamental breach” of the oath they took upon taking office, and violated the public’s trust for their own personal gain. The maximum prison sentence for bribery is 10 years, while the maximum for the extortion charge is 20.

Ms. Harper could face an additional two years in prison for the additional charge.

Details in the complaint suggest up to $34,260 changed hands between business owners, the councilmen, and Mr. Mitchell during the course of the investigation.

“The residents of Toledo should know, as should every other resident of the Northern District of Ohio, that where there are allegations of public corruption and kickbacks, we and our federal partners will be there every time,” U.S. Attorney Justin Herdman said in a statement.

The four council members appeared before Magistrate Judge James Knepp II by video conference in U.S. District Court in Toledo on Tuesday afternoon.
Image Description
U.S. Assistant Attorney Michael Freeman said the government did not seek detention for any of the defendants. Each councilman was released on a $50,000 unsecured bond, meaning if they fail to appear in court, they owe the government that much money. Additionally, they were barred from out-of-state travel and from having contact with co-defendants, victims, and witnesses.

Toledo bribery scandal rocks Lucas County's long-dominant political party

“I don’t know anything; I don’t know how this came about,” Ms. Harper told The Blade as she left the courthouse Tuesday afternoon.

She would not address the accusations of soliciting bribes, nor would she say if she will step down from her post on council.

Her attorney, Jon Richardson, could not be reached for comment. Ronnie Wingate, an attorney representing Mr. Sykes, declined to comment.

Both Mr. Riley, himself an attorney, and Mr. Johnson did not yet have legal representation but are expected to hire lawyers.

Toledo Mayor Wade Kapszukiewicz said in a statement that he was “shocked and heartbroken by today’s arrests.”

“This is a terrible day for Toledo — and for everyone who believes in the good that can be accomplished through public service,” he said.

Matt Cherry, president of city council and a Democrat like his accused colleagues, said he and other councilmen are cooperating with the investigation.

“Corruption of any kind cannot be tolerated and has no place in the government of Toledo and Ohio,” he said in a statement.

Court records suggest that one council member — Mr. Riley — has been soliciting bribes since at least 2013. It was Mr. Riley’s actions that also seemed to initially draw the attention of the FBI.

The criminal probe appears to have started on March 5, 2018, when a federal agent interviewed an unnamed source who owns several commercial properties, primarily gas stations and convenience stores, within the city. That person, who was arrested in 2018 for being in the United States illegally, reported previously providing things of value to Mr. Riley in exchange for his vote on matters before council.

Investigators noted that they believe the source married a U.S. citizen in 2000 with the sole intent of obtaining immigration benefits, but was denied lawful permanent resident status based on the fraudulent marriage, which was denied. The source has remained in the United States without lawful immigration status and is still subject to criminal and immigration consequences, according the complaint.

The source in 2013 purchased a gas station and convenience store on Dorr Street. Shortly thereafter, another business wanted to open a competing store nearby, but needed city council to approve a special use permit.

When the source asked Mr. Riley to vote against the permit, the councilman asked for a political donation, according to a criminal complaint.

The source wrote a $300 check to Mr. Riley, the complaint states. Additionally, Mr. Riley asked the source if alcohol could be delivered to the source’s business for Mr. Riley’s upcoming fund-raiser.

"Source 1 opined Riley did so in order to avoid paying the requisite taxes on alcohol by having the alcohol delivered to a liquor license holder. Source 1 agreed to accept the delivery of alcohol," according to the complaint.

Mr. Riley also requested that the source pay the delivery fee of $300. The source agreed, as long as Mr. Riley didn’t cash the $300 check he/she just provided, court records state. Still, Mr. Riley cashed the $300 check, and the councilman did not reimburse the source for the delivery fee, in essence taking $600.

In May, 2018, the source filed paperwork with the city requesting a "curb cut ” — a small ramp built into the curb of a sidewalk — be placed near a Dorr Street gas station in order to increase traffic flow into the business. The business was in Mr. Riley's district and such a request required a special permit that needed approval from city council.

Prior to the vote on May 23, 2018, the source met with Mr. Riley for lunch to discuss the matter. Mr. Riley expressed his support for the project. After the meal, Mr. Riley never attempted to pay for his portion of the approximately $130 restaurant bill, according to court records.

“Mr. Riley then ordered a meal (prime rib and carrot cake) ‘to go,’ knowing source 1 would pay for it,” a complaint states.

During a conversation in the parking lot, Mr. Riley also told the source he wanted $2,000 to be delivered to a family member.

During a second lunch meeting on May 31, 2018, the source provided Mr. Riley with $2,000 and informed Mr. Riley that it was the money, “for his support,” according to court records. A second unnamed person, identified as ‘middleman 1’ in court documents, joined the source and councilman for lunch then added $1,000 for Mr. Riley to accept a total of $3,000.

The middleman was directed to take the $3,000 in lieu of Mr. Riley accepting the funds in a public setting, records show. The middleman then purchased four $500 money orders with the money, forging the source's name as the purchaser with the money orders payable to Mr. Riley.

Over several months, Mr. Riley deposited $1,500 worth of money orders in his “Riley for Council,” account and then deposited the other $500 money order in his “Smith Park Community Coalition” account. Mr. Riley hosts an annual family festival at Smith Park in his district, which includes a bicycle giveaway for kids.

On Dec. 10, 2018, an FBI agent approached the middleman, who admitted to paying bribes to Mr. Riley and acting as a conduit to funnel bribes to the councilman, according to the complaint. That person then agreed to cooperate with the FBI investigation, becoming identified as source 2 in court documents.

Source 2 does not have a criminal history, however his/her actions prior to cooperating are subject to criminal penalties. Internet cafe businesses, which source 2 operated, may be in violation of federal or state gaming laws, records show.

The next day, source 2 spoke to Mr. Riley about the curb cut and indicated the first source was willing to pay more money if necessary.

On Jan. 2, 2019, source 1 — the owner of the Dorr Street gas station — again met for lunch with Mr. Riley to discuss the May, 31, 2018 bribe payment.

The councilman reassured source 1 that he would take care of everything necessary to get the special permit approved, records show. He also asked the source to financially support a re-election event and again left without paying for his meal.

On April 30, Mr. Riley informed source 1 that he garnered enough votes for council to support the curb cut permit, but that he would have to abstain from voting, according to the complaint. He later told the source that his abstention was to make sure that was no “appearance of impropriety.” City council approved the special permit but source 1 was required to install a sprinkler system on the property.

The gas station owner then met with Mr. Riley for lunch on May 9, 2019, thanking the councilman for his assistance. Mr. Riley again left the restaurant without paying for his meal, and added a piece of carrot cake "to go," according to the complaint.

On Tuesday, Mr. Riley told The Blade while standing outside the federal courthouse that he did not accept any bribes, and he needed to review the charges to understand how the allegations came about.

Internet cafe votes

Before ever becoming an FBI informant, the ‘middleman’ from the gas station curb cut exchange had applied for his own rezoning request to open an internet cafe business on Holland-Sylvania Road in April, 2018, according to the complaint. In that matter, too, the source paid Mr. Riley $3,000 for his support, according to court records.

The cafe came up for a vote on Oct. 23, 2018, and an FBI agent present at that council meeting witnessed Mr. Riley give source 2 a "thumbs up," in council chambers.

The next day, the source sent an additional payment of $1,000, which Mr. Riley directed to go to the Smith Park Community Coalition.

Federal investigators contend bank records confirmed the source paid Mr. Riley a total of $2,000.

Internet cafes continued to play a role in the FBI probe as it unfolded.

In October, 2018, source 2 applied for a special use permit to open an internet cafe on Central Avenue, which was within Ms. Harper's district.

The source was not as familiar with Ms. Harper and reached out to a fellow Toledo business owner — unnamed in court records — who received a renewal of a liquor license in April 2016, despite strong opposition from neighboring businesses and Toledo police, court records show.

The fellow business owner told source 2 that he paid approximately $5,000 in bribes through a local attorney — Mr. Mitchell — which was “the only way to ensure her support,” according to court records. The business owner suggested source 2 do the same thing and set up a meeting between them and the councilman.

About two weeks before the permit vote, Ms. Harper called source 2 and said she needed him/her to sponsor two tables at an upcoming event totaling $640, the complaint states. Source 2 on Feb. 12, “provided the requested money orders totaling $640 to Harper’s assistant while inside Council chambers,” according to court records. “Moments later, Harper sat on the Planning Committee and advocated for” the special use permit to go through.

Authorities contend source 2 eventually bribed four city council members for supportive votes: Ms. Harper through Mr. Mitchell, Mr. Johnson, Mr. Riley, and Mr. Sykes. Council unanimously passed the special use permit on Feb. 25, 2020.

Federal authorities point to other special use permit votes regarding internet cafes they contend were influenced by bribes, including two votes related to businesses owned by an acquaintance of source 2.

Ms. Harper, through Mr. Mitchell, is accused of accepting bribes from that acquaintance in exchange for an affirmative vote on July 23, 2019, for a Manhattan Boulevard internet cafe.

That acquaintance in December, 2019, filed another permit request to open an internet cafe, this time on Secor Road, but the Toledo City Plan Commission in February recommended council reject the request.

This time, federal officials allege, it was Mr. Johnson who accepted bribes in exchange for a “yes” vote. Even with the affirmative votes of other councilmen, including Ms. Harper, Mr. Riley, and Mr. Sykes, the permit request failed.

Source 2 reached out to Mr. Johnson to see if there was any way the acquaintance could appeal the decision. Source 2 gave Mr. Johnson $2,000 in cash toward his campaign for Lucas County sheriff, court records show.

The councilman then advised source 2 to call the plan commission staff because “you don’t want it to come through one of us (City Councilpersons), ‘cuz it’s gonna look like a quid-pro-quo,” court records show.

As Mr. Johnson left the federal courthouse Tuesday, he told The Blade he was confused by the whole situation and needed to hire an attorney.

Greg Gilchrist, professor at the University of Toledo’s College of Law, said that, in general, criminal cases involving bribery charges against public officials require evidence that the money or gift was provided in direct exchange for an official act, such as voting a certain way on a particular issue.

That can be difficult to prove, Mr. Gilchrist said, because politics is awash in money and public officials could argue that the funds were received as part of a campaign contribution, or that the person paying out the alleged bribe wasn’t trying to sway a vote but was simply buying goodwill.

“You see this all over politics in more sophisticated ways that never become criminal,” he said.

Both the general public and corporations have the right to spend money, per the Supreme Court, in support of political issues. Lobbying, though, typically isn’t done with an explicit understanding that the money is paying for a direct action from a politician, Mr. Gilchrist said.

The line between legal financial contributions and criminal activity can be blurry, he said.

“I think we have a real problem with the state of the law here,” Mr. Gilchrist said.

He also noted that paying a bribe is illegal as well, but prosecutors often focus bribery investigations on any public officials involved rather than those seeking a favor. That’s because public officials’ misconduct would mean a violation of the public trust, Mr. Gilchrist said, though he advised citizens to withhold judgment until more of the facts are brought to light.

“Right now, all we have is a complaint,” he said.

Tuesday’s events are not the first time Toledo’s elected officials have been charged with accepting bribes.

Former Toledo Councilman Bob McCloskey served about 20 months in federal prison term after pleading no contest in Lucas County Common Pleas Court and guilty in federal court to unrelated bribery convictions in 2006.

The federal conviction stemmed from two FBI stings in which the former Democratic councilman accepted $5,000 from a businessman who wanted assistance from the city on development projects. The conviction in Common Pleas Court stemmed from a 2002 case in which McCloskey was accused of working for the defeat of a rezoning application because the applicants refused to set up a $100,000 prescription drug fund for Pilkington Plc retirees.

McCloskey, of East Toledo, was elected as a district councilman in 1993 and continuously re-elected until 2005 when he was elected to an at-large seat.

In the current case, Mr. Sykes is accused of accepting bribes tied to several votes related to internet cafes, including two owned by source 2 on Reynolds Road.

Source 2, according to the complaint, applied for the permits in September, 2019, and during that same time wanted councilmen to pass a moratorium on additional internet cafes to cut down on competition.

Court records suggest source 2 paid Mr. Sykes $1,000 in exchange for three votes in favor of the cafes and the moratorium legislation. Source 2 paid Mr. Riley $5,500 for those same favors, the complaint states.

Upon his exit from the courthouse, a reporter asked Mr. Sykes if he intends to step down from his elected position:

“For what?” he said.



Voting is beautiful, be beautiful ~ vote.©

Wednesday, May 13, 2020

SCOTUS: Stealin' The Vote - Bribery & The Electoral College - Removal From Office - Quid Pro Quo In Nullification

The question is whether an elected official can be removed from office for bribery in changing the electoral college vote in a presidential election.


Yes, there are "Legal Geniuses" (trademark pending) vociferously defending state elected officials in changing their votes based upon being bribed or blackmailed in the electoral college vote and whether these electors can be removed from office.

This is also called quid pro quo.

You can remove an elected official from office for bearing false witness through the vote in corrupting the public record.

You can also remove an elected official from office if they are unduly elected, with a fake ass certification of the oath of office.

It is called nullification.

I could never figure out why these lawyers use pre-Emancipation Proclamation court opinions to support post-Emancipation Proclamation arguments.

The real query should be to ask where did that bribery money come from.

I am going to say stealin' the children, land & vote.

When you take an oath of office to not breach the public trust, them, get bribed and/or blackmail, then, is this not called rule by fear, which means there is no consent?

But, in the situation of the Democratic National Committee, which is a private corporation, funded through stealin'  with foreign money which was stolen from the posterity of the state, how come we cannot just dissolve the incorporation under the laws of the States?

Wait a minute...

It seems the Michigan Democratic Party has been defrocked from its right to engage in any act of commerce, or political activities, like elections.

Image may contain: text

The purpose or purposes for which the corporation is organized are: To lawfully form a political party called the Democratic Party. To find and run people with compatible political philosophy for public office and appointments. To raise campaign funds and operating expenses as a non-profit political corporation within the laws of the state under the government and the laws of the United States of America. To make and hold all politicians accountable for any violations of our constitutions. To seek out candidates for public office that will ensure that the government of these United States and this state remain forever within the bounds of our respective constitutions. To seek the lawful means to publicly execute any public office holder for betraying their oath of office and our constitutions. To seek severe and public punishments for office holders that engage graft, greed and corruption while in office such as bribery, trading in influence, patronage, nepotism and cronyism, electoral fraud, embezzlement, kickbacks, unholy alliances, or involvement in organized crime.

Michigan LARA
ID Number: 800930810      
Summary for:  DEMOCRATIC PARTY           
The name of the DOMESTIC NONPROFIT CORPORATION:   DEMOCRATIC PARTY
     
The name was changed from: THE DEMOCRATIC PARTY on 09-29-2011
     
Entity type:   DOMESTIC NONPROFIT CORPORATION
Identification Number: 800930810 Old ID Number: 7102U
 
Date of Incorporation in Michigan:   08/16/2011

Purpose: Stealin' the children, land & vote.

Date of Dissolved: 12/01/2015 Term: Perpetual  <=============Look!!!!
 
Most Recent Annual Report: 2012 Most Recent Annual Report with Officers & Directors:   2012
         
The name and address of the Resident Agent:
Resident Agent Name: DEAN S HAZEL
Street Address: 1028 N MONROE ST
Apt/Suite/Other:
City: MONROE State: MI Zip Code: 48162
Registered Office Mailing address:
P.O. Box or Street Address:
Apt/Suite/Other:
City: State: Zip Code:
   
Act Formed Under:   162-1982 Nonprofit Corporation Act
   
The corporation is formed on a Directorship basis.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

We should definitely ask Grace Meng if she can be removed from office.

Grace Meng, ’97
New York, New York

Grace Meng headshot
Grace Meng, top honcho of the GO BLUE
Corporate Shape Shifting
Democratic National Committee &
New York Congresswoman
Is serving her second term in the U.S. House of Representatives, representing the Sixth Congressional District of New York, encompassing the borough of Queens. Ms. Meng also serves as a vice chair of the Democratic National Committee and as the Vice Chair and Committee Director of the DNC, which is inactive because the parent corporation is dissolved.

Full Bio

Ms. Meng is the first Asian-American member of Congress from New York State and the only Congress member of Asian descent in the entire Northeast. She is also the first female member of Congress from Queens since former vice presidential nominee Geraldine Ferraro. She also serves as a vice chair of the Democratic National Committee.

Ms. Meng is a member of the House Foreign Affairs Committee and its Subcommittees on the Middle East and North Africa, and Asia. She also serves on the House Small Business Committee where she is the ranking member of the Agriculture, Energy and Trade Subcommittee.

Congresswoman Meng is also an assistant whip in the House and a founder and co-chair of the Kids’ Safety Caucus, the first bipartisan coalition in the House that promotes child-safety issues. She helped create and serves as co-chair of the Quiet Skies Caucus, which works to mitigate excessive aircraft noise that adversely affects communities. During her first term in the House, Ms. Meng scored several legislative victories, a significant accomplishment for a new member of Congress. In fact, she was one of just 12 Democrats – out of all 207 – who passed three or more bills, placing her in the top six percent.

Born in Elmhurst, Queens, and raised in the Bayside section of the borough, Ms. Meng attended local schools, and graduated from Stuyvesant High School, and the University of Michigan. She then earned a law degree from Yeshiva University, Benjamin Cardozo School of Law.

Prior to serving in Congress, Ms. Meng was a member of the New York State Assembly. Before entering public service, she worked as a public-interest lawyer. She resides in Queens with her husband, Wayne, and two sons, Tyler and Brandon, and her dog, Bounce.


ID Number: 800930811      
Summary for:  YET TO BE NAMED PARTY           
The name of the DOMESTIC NONPROFIT CORPORATION:   YET TO BE NAMED PARTY
     
The name was changed from: REPUBLICAN PARTY on 09-26-2013
The name was changed from: THE REPUBLICAN PARTY on 09-19-2011
     
Entity type:   DOMESTIC NONPROFIT CORPORATION
Identification Number: 800930811 Old ID Number: 71029T
 
Date of Incorporation in Michigan:   08/16/2011

Purpose:

Date of Dissolved: 12/01/2015 Term: Perpetual  <=============Look!!!
 
Most Recent Annual Report: 2012 Most Recent Annual Report with Officers & Directors:   2012
         
The name and address of the Resident Agent:
Resident Agent Name: DEAN S HAZEL
Street Address: 1028 N MONROE ST
Apt/Suite/Other:
City: MONROE State: MI Zip Code: 48162
Registered Office Mailing address:
P.O. Box or Street Address:
Apt/Suite/Other:
City: State: Zip Code:
 
     
Act Formed Under:   162-1982 Nonprofit Corporation Act
   
The corporation is formed on a Directorship basis.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
No photo description available.
https://www.sos.state.co.us/biz/BusinessEntityDetail.do?quitButtonDestination=BusinessEntityResults&nameTyp=ENT&masterFileId=20161316586&entityId2=20161316586&fileId=20161316586&srchTyp=ENTITY
How can one swear a superseding oath of fealty to a foreign corporation, under the laws of a foreign nation when you have to swear an oath of fealty to the United States as a domestic office holder of the children's trusts?

Now, the question for SCOTUS is, "Which foreign nation?"

There is no certificate of dissolution, which means that it was placed in a legal suspended animation.

When, we have no idea but I am going with December 1, 2015.

Who did it?

I am going with Auntie, the Co-Parentor of the Children, as my final answer.
~~~~~~~~~~~~~~~~~~~~~
DEMOCRATIC PARTY NONPROFIT
Company Number
800930810
Previous Company Numbers
71028U
Status
Dissolved <======================= Look!!!
Incorporation Date
16 August 2011 (over 8 years ago)
Dissolution Date
1 December 2015
Company Type
DOMESTIC NONPROFIT CORPORATION
Jurisdiction
Michigan (US)
Registered Address
1028 N MONROE ST MONROE MI 48162
United States
Previous Names
THE DEMOCRATIC PARTY
Alternative Names
DEMOCRATIC NATIONAL COMMITTEE (trading name, 2012-07-26 - 2015-12-01)
DEMOCRATIC PARTY (trading name, 2011-09-09 - 2011-09-29)
DEMOCRATIC PARTY OF MICHIGAN (trading name, 2011-08-22 - 2015-12-01)
DEMOCRATIC PARTY OF MICHIGAN STATE CENTRAL COMMITTEE (trading name, 2011-09-09 - 2015-12-01)
MICHIGAN DEMOCRATIC PARTY (trading name, 2011-08-17 - 2015-12-01)
THE DEMOCRATIC PARTY (trading name, 2011-09-29 - 2015-12-01)
THE MICHIGAN DEMOCRATIC PARTY (trading name, 2011-08-17 - 2015-12-01)
Agent Name
DEAN S HAZEL
Inactive Directors / Officers
DEAN S HAZEL, agent
~~~~~~~~~~~~~~~~~

With this new information presented to SCOTUS, it seems the "Legal Geniuses" (trademark pending) failed to execute a simple search on the legal standing of their respective parties they are supposedly representing, which makes everything they just entered into the formal record to be an act of bearing false witness, meaning all that work on their arguments are now moot.

Idiots.

So, for my closing arguments, I am going to say, as I always do, how is it you can prosecute a ham sandwich, or rather, how can you prosecute something which does not exist?

DUH!

Where is Mueller?

This means everyone was unduly elected, grounds for nullification.

I shall also presume all the Michigan Governor Executive Orders are unconstitutional, too!

#sealsmatter

#matheheavensfall


Voting is beautiful, be beautiful ~ vote.©

Thursday, April 30, 2020

DOJ: Former UCLA Soccer Coach Agrees to Plead Guilty in College Admissions Case

Then, the money was probably laundered through a tiny humans trust fund, where it ended up being invested in real estate, then mortgaged, wiped out, transferred to another fake ass LLC, lumped into a bundle and leveraged for overseas investments through more tiny humans trust funds.


Jorge Salcedo admits to receiving $200,000 in bribes to facilitate the admission of two students to the University of California at Los Angeles

BOSTON – The former men’s soccer coach at the University of California – Los Angeles (UCLA), has agreed to plead guilty in connection with his involvement in a scheme to use bribery and fraud to facilitate the admission of applicants to UCLA.
Jorge Salcedo, 47, of Los Angeles, Calif., will plead guilty to one count of conspiracy to commit racketeering.  A plea hearing has not yet been scheduled.  According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine, forfeiture in the amount of $200,000 and restitution.
In 2016, Salcedo agreed with William “Rick” Singer, Ali Khosroshahin – a former head coach of women’s soccer at the University of Southern California – and others to facilitate the admission of the daughter of Davina and Bruce Isackson to UCLA as a purported women’s soccer recruit.  For his part in the deal, Salcedo received $100,000 of the $250,000 that the Isacksons paid Singer.
In 2018, Salcedo agreed with Singer and Khosroshahin to “recruit” the son of Xiaoning Sui, another client of Singer’s, to the UCLA men’s soccer team.  Sui’s son did not play soccer competitively.  In exchange for the recruitment, Salcedo accepted a $100,000 bribe from Singer.  Sui paid Singer $400,000.
Singer, Khosroshahin, Davina and Bruce Isackson, and Sui have all pleaded guilty for their roles in the offense.  
 Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.

Voting is beautiful, be beautiful ~ vote.©

Thursday, March 5, 2020

DOJ: Former North Carolina State Political Party Chairman Previously Pleaded Guilty to Lying to the FBI in Connection with the Bribery Scheme

The frauds of the Republican National Committee are being illuminated by DOJ.

I suggest Cocktails & Popcorn.

Here is the unsealed indictment... and you wonder why why no one will discuss the massive fraud scheme called health care.

I have been following UnitedHealth, the darling of the Democratic National Committee and #perkinscoiesucks.

A federal jury sitting in Charlotte, North Carolina, has convicted the founder and chairman of a multinational investment company and a company consultant of public corruption and bribery charges, for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions. 
Greg E. Lindberg, 49, of Durham, North Carolina, the founder and chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 69, of Chapel Hill, North Carolina, were convicted of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds after an approximately three-week trial before U.S. District Judge Max O. Cogburn Jr.  A third co-defendant, Eli Global executive John V. Palermo, 64, of Pittsboro, North Carolina, was acquitted by the jury.  A fourth co-defendant, Robert Cannon Hayes, 74, of Concord, North Carolina, previously pleaded guilty to making false statements to the FBI.
“Greg Lindberg and John Gray undermined public confidence in our government by promising millions of dollars in campaign contributions in exchange for government decisions to benefit Lindberg’s business interests,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “The department is grateful for the assistance of the law-abiding public officials who reported the attempted bribes in this case, which allowed us to use all the tools at our disposal to investigate and root out this pernicious and greedy effort to corrupt North Carolina state government.”
“The defendants devised an elaborate plan to make a hefty campaign contribution to an elected official to secure favorable action.  This was not a lapse in judgment.  It was a deliberate bribery attempt and a clear violation of federal law,” said U.S. Attorney Andrew Murray for the Western District of North Carolina.  “Public corruption is a threat to our way of life and if left unchecked it can tear apart the very fabric of our country. My office will continue to diligently ferret out public corruption schemes to protect the public and hold bad actors like these unscrupulous defendants accountable.”
“Greg Lindberg and John Gray plowed across the line from legal political donations to felonious bribery,” said Special Agent in Charge John Strong of the FBI’s Charlotte Field Office.  “These men thought they could buy changes to North Carolina Department of Insurance personnel, policies, and procedures to benefit Lindberg's businesses.  The FBI will work tirelessly to root out any and all forms of public corruption.”
According to filed court documents, witness testimony and evidence presented at trial, in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to the FBI about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated. 
The evidence established that from April 2017 to August 2018, Lindberg, Gray and Hayes engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG.  Trial evidence further established that Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG. 
According to trial evidence, Lindberg, Gray and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously.  In order to conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set-up to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner.  In addition, at Lindberg and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was chairman, to the Commissioner’s re-election campaign.
According to admissions Hayes made in connection with his guilty plea, on or about Aug. 28, 2018, Hayes falsely stated to FBI agents that he had never spoken with the NCDOI Commissioner about personnel or personnel problems at NCDOI, or about Lindberg or Gray.  Hayes further admitted that, at the time he made the materially false statements, Hayes knew that it was unlawful to lie to the FBI, and knew that his statements were false because Hayes had in fact spoken with the NCDOI Commissioner about Lindberg and Gray, and about Lindberg’s request that the Commissioner move certain personnel within NCDOI.  
The FBI’s Charlotte field office investigated the case.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office for the Western District of North Carolina are in charge of the prosecution.


Financier Who Amassed Insurance Firms Diverted $2 Billion Into His Private Empire

The sheer scale of Greg Lindberg’s efforts has little precedent in recent decades, industry experts say

Soon after Greg Lindberg moved into the insurance business, the North Carolina entrepreneur went on a spending spree.

He bought nearly 100 companies around the globe, an estate in the Florida Keys, an Idaho lakeside retreat, a Gulfstream jet and the most expensive mansion ever sold in Raleigh, N.C. In September 2018 he added a 214-foot yacht with room for a dozen overnight guests. He also became the largest political donor in North Carolina and lavished money on other races around the country.

The cash came, at least in part, from huge sums Mr. Lindberg diverted from the group of life insurance firms he began assembling in 2014, a Wall Street Journal investigation found.

The Yale-educated executive lent at least $2 billion from those insurers to scores of entities he controlled, using much of it to expand his private holdings, according to interviews, regulatory filings and more than 4,500 internal documents from Mr. Lindberg’s companies reviewed by the Journal.

The sheer scale of Mr. Lindberg’s use of insurance assets to invest in his own businesses has little precedent in recent decades, industry experts say, and exposes hundreds of thousands of policyholders to an unusual and potentially risky strategy.

Greg Linberg
The insurers disguised the money flow by contending in public regulatory filings that many of the entities they invested in, with names such as Secured Loan-Backed Funding IV LLC, weren’t affiliated with his empire. In reality, documents show, that entity and more than 100 similar ones were set up by Mr. Lindberg to direct money to his own ventures, the Journal found.

Mr. Lindberg is among a wave of financiers who have snapped up life-insurance companies in recent years, contending they can do better than traditional owners in investing the vast assets on insurers’ books in a low interest-rate environment. Some in this new class of owners have deployed unusual financial structures and complex investments, challenging state regulators who have struggled to stay on top of the changing environment.

In Mr. Lindberg’s case, his empire-building has drawn scrutiny from both federal and state authorities.

A federal criminal investigation, made public in October after subpoenas were issued, is looking into Mr. Lindberg’s political donations and his relationship with North Carolina regulators, according to people familiar with the matter. North Carolina is one of 11 states in which insurance commissioners are elected. The probe also is exploring potential financial misdeeds related to the insurers, according to people familiar with the matter.

The federal investigation includes secret recordings made by North Carolina’s current insurance commissioner, who took office in January 2017 and began cooperating with the Federal Bureau of Investigation in the first half of 2018, according to people with knowledge of parts of the probe.

Meanwhile, North Carolina insurance regulators are sorting through the complicated debt and equity structures set up by Mr. Lindberg to figure out where the money went and whether the insurers have losses, according to people with direct knowledge of the matter. Vermont also is investigating the Lindberg-related dealings of an insurer based there, a Vermont regulator said.

Mr. Lindberg declined interview requests. A spokesman said in a series of written responses that Mr. Lindberg is cooperating with the federal investigation and with state regulators, and is “aggressively working” to reduce the level of related-party loans. He declined to answer questions about Mr. Lindberg’s political donations.

The spokesman pegged the volume of investments by Mr. Lindberg’s insurers in entities in which he has a “significant economic interest” at $2 billion. He said the investment strategy was approved in advance by North Carolina regulators and was part of a plan by Mr. Lindberg to both improve investment returns for his insurers and expand his overall enterprise.

The spokesman said the U.S. insurers have large financial cushions, hold substantial cash and other liquid assets, and “to this point, there has never been a payment default” on the loans to Lindberg entities. When loans to unrelated borrowers soured, he said, Mr. Lindberg reimbursed his insurers for tens of millions of dollars in losses.

Life insurers, the type run by Mr. Lindberg, normally are very staid enterprises. They are paid premiums up front by policyholders and typically invest the money conservatively for years so they have enough to pay claims. Most invest premium funds in high-quality bonds. Many also own real estate and other less-liquid holdings.

Insurance-company owners are permitted to invest some of the premium money in their own ventures, but regulators monitor these transactions closely to be sure the investments are safe and are fair deals for the insurers. One concern is that related-party investments often aren’t publicly traded and can be difficult to value and sell.

Some states explicitly limit such “affiliated investments” to 10% of total assets, to protect policyholders.

Mr. Lindberg’s investment of insurance funds into affiliates at one point amounted to more than 50% of the assets of one of his main insurers, according to regulatory filings and other documents.

“Insurance-company assets are not intended to be a piggy bank for your other activities,” said Therese Vaughan, a former Iowa insurance commissioner who is now a Drake University insurance and actuarial science professor, speaking generally.

Now 48 years old, Mr. Lindberg began a health-insurance newsletter from his Yale dorm room. He eventually built a conglomerate based in Durham, N.C., that consisted of separate entities tied together with the brand name Eli Global. Before the insurance binge, Eli Global had annual revenue of about $150 million, according to internal corporate documents, and included a medical-coding company, collection agencies and a sports-memorabilia firm.

Mr. Lindberg owns 100% of Eli Global and his insurance empire.

Former employees recall Mr. Lindberg as a financially brilliant, hands-on owner. Mr. Lindberg gave considerable rein to his top executives, but would often personally approve even the smallest expenses at new acquisitions.

“It was a fun place to work” because it was informal and entrepreneurial, said Ian Lipman, a former Eli Global mergers specialist.

Mr. Lindberg also could be socially awkward and quirky, according to some former employees and people who have dealt with him on business matters. For years he wore only black pants and black T-shirts to work, and typically ate from bags of fruit and nuts. He gobbled vitamins and supplements and for exercise ran at high speed on a treadmill set at maximum incline for more than an hour, former employees say.

“Mr. Lindberg is health conscious and focuses on other variables in his life beyond what he wears,” his spokesman said.

He could be frugal. He wrote last year in a personal blog post of buying folding tables and chairs in the early days of his company, which he later replaced with “hideous” but more comfortable secondhand furniture. Eli Global shifted thousands of jobs to India to save money, then provided a bicycle—rather than a car—when Indian IT staffers visited Durham, former employees recall.

Mr. Lindberg began scouring insurers for possible acquisitions in about 2012. What most seemed to attract him, former employees say, was the large cache of assets on insurers’ balance sheets.

Initially, he looked for small insurers that wouldn’t cost much, according to a deposition in later litigation over banking fees. His purchases eventually included a Louisiana insurer bought out of receivership and a struggling Dutch insurer acquired for €1.

Mr. Lindberg told regulators that investing in his own businesses was a safe strategy for the insurers because his company had achieved 35% annual investment returns. “Eli Global has a long history in establishing private placements and managing the risks successfully,” the company said in one presentation to regulators.

His first acquisition, in 2014, was a small Alabama burial-policy insurer, Southland National Insurance Corp. It had about $170 million of assets to cover future claims as policyholders died. Mr. Lindberg paid about $22 million for it.

He was candid about wanting a bigger role for affiliated investments in seeking deal approval from Alabama regulators. At a hearing, he said he thought Southland could do better by swapping some low-yielding corporate bonds into floating-rate debt of his Eli Global operating companies.

Alabama had a law that explicitly limited such investments to the lesser of 10% of total assets or an amount less than half the insurer’s net worth. Mr. Lindberg assured Alabama regulators he would keep affiliated investments within the limits, which would have restricted such deals to just a few million dollars because of the insurer’s low net worth.

Unlike other areas of finance, insurers are regulated primarily by states, not a single federal agency. Although a national standards-setting body accredits insurance departments, states retain flexibility. As a result, companies can shop around for an accommodating venue.

Within four months of the deal’s approval in August 2014, Alabama regulators were out of the picture. Mr. Lindberg shifted Southland to North Carolina and began replacing tens of millions of dollars of its bonds with loans to Lindberg companies.

By the end of 2015, $177 million of Southland’s expanded portfolio was invested in affiliated entities, filings show—more than half its assets at that point.

Although North Carolina statutes are less direct than Alabama’s about affiliated investments, regulators there customarily enforce similar limits. They made a rare exception for Mr. Lindberg, allowing Southland to invest as much as 40% of its assets in Lindberg affiliates rather than the normal 10%, according to regulatory correspondence reviewed by the Journal.

The Lindberg spokesman confirmed that. He declined to say who gave the approval, but said it followed multiple discussions with the state’s insurance department.

A spokeswoman for the North Carolina insurance department declined to comment on regulation of the Lindberg insurers under the prior commissioner, citing the federal investigation.

At the time, the commissioner was Democrat Wayne Goodwin, who won the office in 2008 and was up for re-election in 2016.

Mr. Lindberg held a February 2016 fundraiser for Mr. Goodwin at his Durham estate. Between that gathering and later donations, Mr. Lindberg, his employees, business associates and some of their spouses and family members contributed about $125,000 to the commissioner’s campaign, or more than 10% of Mr. Goodwin’s total, election records show. Mr. Lindberg also created a PAC that purchased ads in support of Mr. Goodwin and gave $425,000 to it, records show.

Mr. Lindberg supported Mr. Goodwin because “he was a business-minded insurance commissioner,” his spokesman said, adding that the insurance department’s approval of Mr. Lindberg’s investment strategy preceded the donations by about two years.

In a statement, Mr. Goodwin said that “any suggestion that I have ever taken any action in return for contributions is categorically false.” He said he didn’t recall “being asked to take or direct any action” to benefit Mr. Lindberg and had deferred to staff experts on complex regulatory matters.

Mr. Goodwin, now chairman of the state’s Democratic Party, said he has cooperated with the federal investigation and has been told by federal officials he isn’t a subject of it.

Mr. Lindberg bought several other insurers in 2015 and 2016, in part using money from Southland. He moved them to North Carolina and began operating the collection as Global Bankers Insurance Group.

At first, Southland in its regulatory filings openly listed the flow of money to its owner’s ventures as “affiliated” loans, naming Eli Global companies as the borrowers.

The filings raised concerns in Florida, known for tough insurance regulation. Officials in 2016 took steps to suspend Southland from doing business in the state, finding it was “financially impaired” due to the high level of affiliated investments. Southland voluntarily withdrew from the state.

By putting half of its assets in affiliates, Southland had breached even the lenient agreement with North Carolina. A department examiner took note. She directed Mr. Lindberg in an early 2016 letter to “refrain from investing further in affiliates and to provide a plan outlining how [the insurer] will return to compliance with the 40% agreed upon limit,” according to a copy of the letter in the internal Lindberg documents.

Mr. Lindberg found a strategy that would allow him to contend on regulatory filings that his affiliated investments were, in fact, unaffiliated.

As part of the plan, an intermediate entity, a “special purpose vehicle,” would borrow from one of the insurers and in turn lend the money to a Lindberg company.

Mr. Lindberg put a small amount of capital into each SPV and was the financial owner, while the voting rights were held by an entity controlled by William Wofford, a partner at an outside law firm, Hutchison PLLC, the internal corporate documents show. Hutchison was paid $400,000 up front for this service.

Because it lacked voting rights, “Eli Global has absolutely no control” over the SPVs, and therefore they weren’t affiliates, the company said in a 2016 presentation to North Carolina regulators reviewed by the Journal. One slide in the presentation was headed: “Replacing Affiliate Loans with SPV.”

The law firm provided regulators with legal opinions that the SPVs weren’t affiliates. Some of the firm’s lawyers including Mr. Wofford donated to Mr. Goodwin’s campaign at the time of the February 2016 fundraiser at Mr. Lindberg’s home, held as regulators were considering the SPV plan.

Hutchison’s Mr. Wofford said he supported other Democratic candidates and causes that year, and “I feel that my firm and I have acted appropriately in these matters.”

The Lindberg spokesman said the SPV structure was “developed in consultation with, and ultimately with the approval of” the North Carolina insurance department, and was intended to achieve higher bond ratings for the investments, not avoid affiliate-reporting rules.

Internal Lindberg documents show how this structure worked. Mr. Lindberg’s Colorado Bankers Life Insurance Co. lent $8.8 million in November 2016 to a new SPV, Macon LLC, which promised to pay 9.5% annual interest over a decade. Mr. Lindberg used that money to acquire a Massachusetts public-relations firm for his conglomerate, the documents show.

By routing the loan through the SPV, Colorado Bankers could claim the loan wasn’t to an affiliated borrower, even though Mr. Lindberg was using the money to expand his empire and one of his companies was the ultimate borrower. (The loan was secured by the assets of the public-relations firm.)

Further muddying the waters, the insurers frequently bought and sold such investments, sometimes holding them for only a few months.

By the end of 2017, the U.S. insurers in total had about $710 million invested in entities in which Mr. Lindberg had a significant economic interest, his spokesman said.

Such related investments accounted for about one-third of the combined assets of his three North Carolina-registered insurers at that point, the spokesman said, not counting their investments in each other or related insurers.

U.S. life insurers in total reported investing about 1% of their bond holdings in affiliates in 2017, the latest available data, the Journal analysis showed. Only a handful reported more than 10%.

As his empire grew, so did Mr. Lindberg’s stated net worth. It reached $1.7 billion at the end of 2017, his spokesman said. That was up fivefold from the $340 million he claimed four years earlier, according to internal documents.

The entrepreneur began leasing a used Gulfstream V in 2014. Soon after, he purchased the Idaho property and filed plans to build a 20,000-square-foot compound. In 2016 he added a $6.2 million, seven-bedroom oceanfront home in the Florida Keys and later bought a second jet.

At his Durham home, on a rural road about 10 miles from the city’s center, Mr. Lindberg had a staff of more than 20 and built an indoor tennis facility for his wife Tisha, from whom he has since become estranged, according to interviews and court filings in legal disputes with his wife. The family took a $1 million yacht vacation, his wife said in one filing.

He also became extremely security conscious. He hired a half dozen guards, installed bulletproof glass at both his home and office, and built a separate security facility at his home along with an underground tunnel leading to a windowless “safe room,” according to interviews, court documents, and online photos of the house.

Tisha Lindberg said in a legal affidavit last year that she considered her husband “paranoid. Not only is the home completely enclosed by a 15-foot high wall and a 12-foot high fence, we also had a security system with more than 20 security cameras, trained guard dogs and security cameras within our home which were monitored by a 24-hour, seven-day a week armed security team.”

Corporate security is normal for any wealthy executive, the Lindberg spokesman said.

Although the maze of entities makes it difficult to trace insurance money directly to Mr. Lindberg’s home purchases, at least one can be linked. Last July, after splitting from his wife, Mr. Lindberg through a shell company paid $5.5 million for a 12,000 square-foot mansion in Raleigh.

The house was bought with the help of a $3.3 million loan from Kite Asset Management Inc., listing an address at Eli Global headquarters. A Lindberg insurer invested $40 million in Kite a few weeks before the home purchase. Delaware filings show Mr. Lindberg was Kite’s president.


Through a shell company, Mr. Lindberg paid $5.5 million for this 12,000 square-foot mansion in Raleigh, N.C., last July.

The Lindberg spokesman said the houses in Raleigh, Idaho and Florida were investments; the yacht has charter possibilities; his two aircraft were used primarily for business; and “insurance companies have not been used to fund Mr. Lindberg’s lifestyle.”

Mr. Lindberg used much of the insurance money to acquire scores of businesses for Eli Global, including a New Mexico wine wholesaler, an Australian software firm, a Canadian debt collector and chains of eye-doctor practices.

Eli Global now has more than 130 companies with 10,000 employees and annual revenue of $3 billion—20 times the revenue five years earlier—Mr. Lindberg says on his personal webpage.

Mr. Lindberg’s spokesman said some of the growth was funded with third-party loans.

A new North Carolina commissioner, Mike Causey, a Republican, took office in early 2017, after beating Mr. Goodwin. Mr. Causey is a farmer and former insurance-agency owner. The tone of communications to Mr. Lindberg’s insurers grew tougher.

“Concerns have been identified regarding the affiliated debt securities and the special purpose vehicles (“SPVs”) that are held by the Companies,” a senior state examiner wrote to the finance chief of Mr. Lindberg’s insurance group in March 2017.

Some affiliated entities borrowing money appeared insolvent, the official wrote. The examiner also said loans to affiliates “were used to provide subsequent dividends to Mr. Greg Lindberg”—suggesting that insurance money was flowing into his pockets. The letter questioned whether some actions complied with state laws.

The Lindberg spokesman said the insurers provided additional information “to substantiate the financial solvency of these entities.”

A few weeks after the combative letter, Mr. Lindberg and his wife each donated $5,000 to Mr. Causey, who returned the money. He said he did so “out of an abundance of caution.”

Amid the regulatory matters, Mr. Lindberg retained the former commissioner, Mr. Goodwin, as a consultant and hired two of his former deputies, including the aide who had overseen the Lindberg insurers. Mr. Lindberg’s spokesman declined to comment on those moves.


North Carolina’s current insurance commissioner, Mike Causey, secretly cooperated with an FBI investigation of Mr. Lindberg.

Mr. Goodwin said his work for Global Bankers was limited and no different than with his other consulting clients.

Mr. Lindberg continued to expand his empire, buying insurers in Michigan, the Netherlands and Luxembourg, and establishing a reinsurer in Bermuda. He also helped finance a reinsurer in Vermont. The Bermuda and Vermont reinsurers proceeded to loan a total of more than $600 million to Mr. Lindberg’s companies.

Mr. Lindberg extracted money from the insurers via a Malta entity he set up to provide investment services to his companies. It received $34 million in fees in 2017, Malta filings show; the Lindberg spokesman said fees have since been sharply reduced.

Beginning in late 2017, Mr. Lindberg’s Colorado Bankers began hauling in large sums of new money to be invested: $1.3 billion in sales of annuities, a type of saving product, to retirees and other conservative investors. Much of that was lent to Lindberg-related entities, filings show.

Meanwhile, a multistate group of financial examiners was working with North Carolina regulators as they sought to understand the complex structures. Mr. Lindberg fielded questions at a March 2018 closed-door session at a gathering of the National Association of Insurance Commissioners in Milwaukee. He showed up at the conference with a bodyguard, an attendee said.

Mr. Lindberg ramped up political donations in late 2017, giving to insurance commissioners in other states and $670,000 to national Republican organizations. In North Carolina, he donated $5.4 million in 2017 and 2018, mostly to Republicans.

After contributing $500,000 to the North Carolina GOP in May 2018, Mr. Lindberg suggested the party donate a portion to Mr. Causey’s campaign, said Dallas Woodhouse, the party’s executive director. Records show the party donated $250,000 to Mr. Causey in June and July. By this time, Mr. Causey was cooperating with the FBI on its secret probe, according to people familiar with the matter. Republican party officials weren’t aware of the investigation.

The party maintains it acted lawfully, because officials didn’t accept the $500,000 with the intent of helping Mr. Lindberg evade the state’s then-$5,200 individual-contribution limit.

Instead, “based on our discretion,” the party decided weeks after receiving the money that it made sense to both accommodate a big donor and help Mr. Causey, Mr. Woodhouse said. No authorities have told the party that its conduct “is under question in this matter,” he said.

In an interview, Mr. Causey said he turned over the $250,000 donation to federal officials, at their instruction. “It’s part of their investigation,” he said.

“The department of insurance is not a target,” he said, “and none of the employees including myself are targets.” He declined to discuss his role in the federal probe.

The North Carolina insurance department is still trying to answer a key question: Are Mr. Lindberg’s businesses good for the money they owe to the insurers? Mr. Lindberg’s spokesman said third-party valuations last year showed the borrowers had plenty of assets to cover the loans.

Mr. Lindberg’s team has shopped the U.S. insurance units to financial firms eager to expand or get into life insurance, and one is interested—if the affiliated investments can be eliminated, according to Wall Street bankers and other knowledgeable people.

Besides trying to sell parts of his empire, Mr. Lindberg has put the Florida Keys property, the Raleigh mansion, his former Durham home and the nearly finished Idaho property on the market, asking a total of $35.5 million.

The executive recently was spending time in Palm Beach, Fla., on board his yacht, according to people familiar with the matter. The boat had been for sale for $44.5 million when he purchased it in September through a newly formed LLC.

The yacht’s name: “Double Down.”

—Tom McGinty in New York contributed to this article.

Write to Mark Maremont at mark.maremont@wsj.com and Leslie Scism at leslie.scism@wsj.com

Corrections & Amplifications
Greg Lindberg leased one Gulfstream jet and bought a second. An earlier version of this article said he purchased both. (Feb. 28, 2019)

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