A Claimant is Requesting Up to $5M in Damages For Northstar (Bermuda) Losses
An older investor has filed a FINRA arbitration claim over losses she sustained in Northstar Financial Services (Bermuda) while working with Cetera Investment Services, LLC. The claimant is a retiree and a foreign national who had an account at a US bank. It was the bank that introduced her to the Cetera financial advisor.
Seeking to keep her assets safe, she entrusted the recommendations of her Cetera Investment Services broker, who then proceeded to unsuitably recommend Northstar Financial Services (Bermuda), essentially overconcentrating 100% of her account with this offshore entity.
Northstar (Bermuda) has since filed for bankruptcy protection and gone into liquidation. It is more than likely that this claimant’s investment no longer has any value. Now, in her FINRA arbitration case, she is seeking up to $5M in damages from Cetera. A panel of three arbitrators will hear her case.
Our Northstar Financial Services (Bermuda) investment lawyers are representing this retiree in her investor claim against Cetera Investment Services.
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is also working with other Northstar (Bermuda) investors, including foreign nationals, in pursuing damages against the broker-dealers who unsuitably recommended this company’s products to them.
Contact us at SSEK Law Firm today.
Why Did Cetera Recommend Northstar Financial Services (Bermuda) Products to Anyone?
Although the broker-dealer had promised the client safe returns with minimal risk and said that it would structure her account to establish principal protection, the Cetera financial advisor recommended that the customer invest $2M in Northstar (Bermuda). This was not just incredibly unsuitable, but it was also very high risk.
It is concerning that this claimant’s Cetera Investment Services broker would even recommend Northstar Financial Services (Bermuda) to this individual who was seeking safety and stability, which could have been better found with US-based annuities instead of offshore ones.
These concerns have only grown over the years. It should be noted there are no prohibitions against investors from Latin America, Asia, or Europe investing in US-based insurance products.
In 2018, Moody’s issued a “junk” rating to Northstar (Bermuda) and at the end of the year, the off-shore entity failed to satisfy statutory disclosures (more missed filings followed). This was the same year that the US Department of Justice began investigating the company’s owner Greg Lindberg.
In 2019, there was a criminal indictment against Greg Linberg and his subsequent conviction for wire fraud and bribery the following year.
At no time did this investor’s Cetera Investment Services broker let her know about these developments or that changes should be made to keep her assets safe. Instead, misrepresentations and omissions were made, and there continued to be a failure to supervise by the firm.
One can only assume that high commissions, other fees, and remunerations were the main incentive for why its financial advisor would even recommend this offshore annuity and to such a degree to this foreign retiree.
Cetera Investment Services Should Have Done More To Protect Customer’s Assets
It is important to note that this is not a hindsight complaint about a recommendation that went bad. This is a suitability case with clear overconcentration, negligence, and gross lack of supervision issues that occurred the entire time.
Northstar Financial Services (Bermuda) owner Greg Lindberg was known for overleveraging his acquisitions. It is very likely he funneled money from the off-shore company to special purpose vehicles in the US that he owned.
Even if Cetera Investment Services had no idea about the problems with Northstar (Bermuda), it was their job to know. And yet, every year when the investor’s account and investments were (or should have been reviewed) by compliance, at no time did the firm seek to rectify its gross mistake of recommending and selling Northstar Financial Services (Bermuda) products to this customer.
Knowledgeable Northstar Financial Services (Bermuda) Lawyers
If you suffered losses in any of the following Northstar (Bermuda) products, get in touch with our securities fraud lawyers today:
- Global VIP Elite
- Global Advantage Plus Series
- Global Index Product
- Global Advantage Select
- Global Interest Accumulator
- PB Investment Holdings
We have been working with investors that have suffered losses as a result of their broker’s negligent actions. Other firms known to sell Northstar (Bermuda) products include Bankoh Investment Services, Truist Investment Services, and Hancock Whitney to name a few.
Call our experienced securities law firm at (800) 259-9010 if you are based in the United States. For international investors, contact us via WhatsApp by texting us at 713-227-2400.