Japanese Investor’s Savings Were Overconcentrated in Offshore CD
An investor who lives in Japan has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Unionbanc Investment Services and its California-based broker, Asako Kanekiyo Thompson.
The claimant suffered losses in an offshore certificate of deposit (CD) from Northstar Financial Services (Bermuda) that was recommended to him by Thompson. BrokerCheck reports that Thompson has been a Unionbanc Investment Services investment advisor and broker for 16 years.
Our Northstar Financial Services (Bermuda) investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this claimant in his fight to recover up to $500K in damages. The arbitration hearing will take place in Los Angeles, California.
Recent Northstar Bermuda Claim: Unsuitability and Negligent Supervision Alleged
The claimant, who used to live in the United States, was a customer of Union Bank of California for a long time before he was contacted by its subsidiary, Unionbanc Investments. The firm recommended that rather than merely invest his money in checking and savings accounts, he invest in Northstar Financial Services (Bermuda). Both the broker-dealer and Thompson reassured him that this investment was safe and very low-risk.
It is important to note that from the get-go this was an unsuitable investment recommendation for an unsophisticated investor. There is no reason this investor’s money should have been overconcentrated in this product. While there is nothing wrong with investing in CDs, it makes no sense why Unionbanc would recommend one in Bermuda instead of in the United States.
Misrepresentations and omissions were made to the claimant, who should not have been exposed to an offshore CD where he was getting a mere 1.5% interest rate especially when there were more comparable, lower risk US-based investments available. The CD was rolled over for many years. Yet at no point did Unionbanc or Thompson remedy their investment recommendation, which was a gross mistake.
Not only that but there was a gross lack of supervision by the firm of its broker. A competent supervisor would have never approved these trades. The claimant proceeded to lose six figures in savings while the respondents earned significant commissions and fees from Northstar (Bermuda) products.
This investor is also alleging grossly negligent behavior and various breaches of duties, including breach of contract and warranties, violation of state securities laws and consumer protection laws, and vicarious liability.
Skilled Northstar Financial Services (Bermuda) Investment Fraud Lawyers
SSEK Law Firm is representing Northstar (Bermuda) investors in FINRA arbitration claims, both in the United States and abroad. Many of these claimants suffered significant losses of six figures or more and should never have invested in these Bermuda-based investments.
Northstar Financial Services (Bermuda), which filed for bankruptcy protection last year, is currently in liquidation. It is unlikely that investors will recover anything from the company whose owner, billionaire Greg Lindberg, is in prison for corruption and likely directed funds from Northstar Financial Services (Bermuda) to other companies that he operated.
This is even more reason why you should retain the services of an experienced broker fraud law firm that has the resources and knowledge to pursue damages against the brokerage firms that sold you this investment.
SSEK Law Firm is currently investigating Northstar Financial Services (Bermuda) fraud cases against Truist Investment Services, Bankoh Investment Services, J.P. Morgan Securities, and Hancock Whitney Investment Services.
In California, call SSEK Law Firm at (619) 550-4847, and for elsewhere in the United States, call (800) 259-9010. If you are currently living internationally, reach us on WhatsApp (text only) at 713-227-2400.