Bankoh Investment Services Investors May Have Lost Up to $70M in Northstar Bermuda Products
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is continuing to speak to investors who suffered losses in Northstar Financial Services (Bermuda) products that were sold to them by Bankoh Investment Services brokers. The broker-dealer is the securities arm of the Bank of Hawaii.
Our investment fraud attorneys are also investigating claims of losses in Northstar Bermuda products from investors who worked with brokers from Truist Investment Services (SunTrust Investment Services), Ocean Financial Services, and any other firms. Unfortunately, investors may have collectively lost up to $70M.
Call (800) 259-9010 today to speak with a knowledgeable Northstar Financial Services (Bermuda) attorney.
$900K in Losses Alleged in Northstar Financial Services (Bermuda) Fraud Case Against Bankoh Investment Services
In a $900K securities fraud case against Bankoh that was filed last year, the claimants, who live in Japan, contend that a broker from the firm recommended Northstar Financial Services (Bermuda) after they expressed the desire to make investments that were conservative in nature.
They contend that they were assured that the Northstar contracts they invested in were safe and liquid. Instead, billionaire owner Greg Lindberg was convicted of bribery and fraud and sentenced to prison, and their redemption requests have not been honored.
The claimants are alleging failure to supervise, negligence, and breach of fiduciary duty against Bankoh. An online source reports that Yoko Farias, a Bankoh Investment Services broker, and Bankoh Advisors investment advisor, was their registered representative. The claim has yet to appear on his BrokerCheck record.
Yoko Farias has worked 21 years in the industry, 19 of them with Bankoh. Previous to that he was a National Financial Services stockbroker.
Investors Expected Tax Benefits, Not Bankruptcy Filing
Tax benefits from being based out of Bermuda were one of the attractions for many investors who bought into Northstar Financial Services (Bermuda) variable- and fixed-rate annuity and investment products.
Founded in the 1990s, the company was acquired by Lindberg in 2018. Soon after he was indicted and then convicted. Lindberg is believed to have directed assets from Northstar Financial Services (Bermuda) to special-purpose vehicles under his operation. The company has since gone into bankruptcy.
Brokers Earned High Commissions From Northstar Financial Services Product Sales
Northstar reportedly paid high commissions to the brokers that marketed and sold their products to customers, including its Global VIP Elite, Global Index Product, Global Advantage Select, Global Advantage Plus Series, and Global Interest Accumulator.
Unfortunately, the incentive of such commissions can make it tempting for stockbrokers and investment advisors to make unsuitable investment recommendations and/or fail to conduct the proper due diligence to make sure there aren’t any red flags or other problems.
Also, there likely were added significant fees for customers, especially with Northstar Financial Services (Bermuda) variable annuity products. According to the Financial Industry Regulatory Authority (FINRA), the types of fees involving variable annuity products can include administrative fees, mortality and expense risk costs, underlying fund charges, and special features charges.
Seasoned Northstar Financial Services (Bermuda) Broker Fraud Attorneys
US-based financial firms sold Northstar Financial Services (Bermuda) investments to customers both in the US and abroad. SSEK Law Firm represents investors who worked with a broker-dealer based in the United States regardless of where they live or are from.