Liquidators Seek Claw Back of $700M for Alleged Fraud
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January 04, 2023, US Bankruptcy Court for Southern New York – Rachelle Frisby and John Johnston, the Joint Provisional Liquidators (“Liquidators”) for PB Life and Annuity Co., Ltd., Northstar Financial Services Ltd., Omnia Ltd., et al., (“Debtors”), sue Global Growth Holdings, Inc., Greg Evan Lindberg and his affiliates and “co-conspirators” (“Defendants”) for running an alleged fraudulent scheme. The Liquidators seek to avoid and recover more than $700 million of alleged fraudulent transfers made by the Debtors to Defendants.
The Liquidators allege that Defendant Lindberg and his affiliates caused the Debtors to transfer over $700 million of liquid assets to a convoluted and opaque network of hundreds of Lindberg affiliates. The complaint labels these transactions as “sham” and allegedly disguised as legitimate loans and equity investments. The Liquidators claim that these transactions gave no material benefit to the Debtors and allegedly drained the Debtors of the liquidity they required to satisfy policyholder claims.
The complaint also alleges that Defendant Lindberg diverted funds from the Debtors to his affiliates to pay personal expenses. The Liquidators further claim that Lindberg and his affiliates made loans to shareholders that allegedly went unpaid and benefitted Lindberg.
The Liquidators request the Court for a judgment declaring Lindberg, his affiliates, and his alleged co-conspirators as personally liable for debts or other liabilities of the Debtors. The Liquidators also seek to recover more than $700 million as damages from the Defendants.
John Johnston and Rachelle Frisby, et al. v. Greg Evan Lindberg, et al., AP No. 23-01000, US Bankruptcy Court for Southern District of New York.