The former chair of the North Carolina Republican Party has pleaded guilty to making a false statement to the FBI in connection with a federal investigation into the attempted bribery of the North Carolina insurance commissioner.
U.S. Magistrate Judge David S. Cayer presided over the plea hearing.
On March 18, 2019, a criminal indictment was filed in the U.S. District Court for the Western District of North Carolina charging Robert Cannon Hayes, of Concord, North Carolina, who at the time was chair of the Republican Party in North Carolina; Greg E. Lindberg, founder and chair of Eli Global LLC and the owner of Global Bankers Insurance Group ("GBIG"); John D. Gray, a consultant for Lindberg; and John V. Palermo, an Eli Global executive, for allegedly attempting to make improper campaign contributions to the elected commissioner of insurance of the North Carolina Department of Insurance ("NCDOI"), in exchange for official personnel action favorable to Lindberg's company, GBIG.
According to admissions Hayes made in connection with his guilty plea, on or about August 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.
Prosecutors said that, at the time that Hayes made the false statements, the FBI was investigating matters related to the attempted bribery of the commissioner, therefore his false statements were material to the investigation.
As Hayes admitted in court, 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.
Lindberg, Gray, and Palermo all have been charged with conspiracy to commit honest services wire fraud, bribery concerning programs receiving federal funds, and aiding and abetting. Their charges are still pending.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].