Japanese Couple Seeks Up To $500K in Northstar (Bermuda) Damages
A Japanese couple has filed an investor claim against Bank of Hawaii subsidiary, Bankoh Investment Services, Inc. for losses they suffered in Northstar Financial Services (Bermuda). The off-shore investment was recommended to them by broker Yoko Farias, who has been under scrutiny for some time for selling Northstar Financial Services (Bermuda) investment products to clients.
The claimants are an older couple who live in Japan where they set up a basic checking account at Bank of Hawaii’s branch in Tokyo. These inexperienced investors were introduced to Farias, who recommended that they invest their money differently.
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is representing these investors in their Northstar Financial Services (Bermuda) against Bankoh Investment Services. It is clear that there were unsuitability issues with recommending this investment to the claimants from the start, and misrepresentations and omissions occurred. Not only that but there was a gross lack of supervision by Bankoh Investment Services of Farias and the couple’s account.
Overconcentration & Gross Lack of Supervision Lead to Northstar Financial Losses
Despite the claimants’ stated desire not to get involved in anything risky or speculative, Farias overconcentrated over $200K of their funds in a Northstar Financial Services (Bermuda) short-term annuity which didn’t come with the same protections offered by US-based annuities.
Considering the risks they were taking on by going with an obscure entity in Bermuda, it also provided low return rates. But Farias, who shared a cultural familiarity with the claimants, assured them that their investment was safe, even CD-like.
Each year, the firm could have rectified its unsuitable recommendation to the couple. Instead, Bankoh Investment Services continued to roll over the investors’ one-year contract with Northstar Financial Services (Bermuda).
Northstar Financial Services (Bermuda) has since filed for bankruptcy and was ordered into liquidation. Its owner Greg Lindberg is in prison and likely funneled the company’s funds into other entities that he operated. With Northstar’s reported $260M deficit, it is highly unlikely that investors will get back their money unless they file their own FINRA arbitration claim to recover damages.
Yoko Farias Also Named in a $900K Northstar Financial Services (Bermuda) Claim
With 21 years in the industry, Yoko Farias has been with Bankoh since 2001. Based in Honolulu, Hawaii, she is also a registered investment adviser with Bankoh Advisors. Previously, Farias was a National Financial Services Corp. broker.
Last year, Farias was named in another FINRA arbitration claim also by Japanese investors of Northstar Financial Services (Bermuda). They are seeking $900K in damages.
Experienced Northstar (Bermuda) Investment Fraud Law Firm
High commissions and other fees seem to have been an incentive for brokers’ unsuitable recommendation of Northstar Financial Services (Bermuda) to customers. SSEK Law Firm is representing a number of investors in pursuing damages against Bankoh Investment Services and the other broker-dealers that sold them these products.
We are working with claimants both in the United States and abroad whose US-based broker-dealer opted to recommend these Bermuda-based products. For more information about Northstar Financial Services (Bermuda), visit our FAQ page (Available in English, Spanish, and Japanese).