Investment Loss Lawyer Team Representing Investors

Northstar Financial Services (Bermuda) Investors Receive New Liquidation Update

On November 15, 2022, Northstar (Bermuda) policyholders were sent an update regarding the liquidation proceedings involving the offshore company, which filed for bankruptcy in December 2020. Many investors are still struggling to recoup their losses.

The letter stated that the Joint Provisional Liquidators (JPLs) are continuing to look into “loan assets and settlements of loan/preferred equity in affiliated entities,” and also at “assets and potential claims” against US-based parties. The JPLs have needed more time to investigate Northstar Financial Services (Bermuda)’s financial affairs.

The company has been embroiled in scandal and losses, especially after its owner, Greg Lindberg, was indicted and then sentenced to prison for wire fraud and bribery. He was released over the summer after the 4th U.S. Circuit Court of Appeals vacated his conviction. Lindberg is now waiting for a new trial.

However, he remains notorious for allegedly having redirected funds from his annuity and insurance companies to special-purpose vehicles. By September 2018, Northstar Financial Services (Bermuda) was able to report only $8M in assets and is believed to have a more than $260M deficit. Meanwhile, many investors, specifically foreign nationals from Japan, China, and countries all over Latin America, remain blindsided by their investment losses. Many tried to get their money back from the company but by then it was too late.

What Should You Do If You Suffered Investor Losses in Northstar (Bermuda)?

You should know that your chances of recovering your entire investment, or even anything at all, from the ongoing bankruptcy proceedings, are slim to none. Quite honestly, there is a very good chance your Northstar Financial (Bermuda) products that you purchased may very well be worthless. This is why it is important that you explore your legal options right away.

Our experienced investment loss lawyers know how devastating this may be for you. The majority of foreign nationals who invested in Northstar (Bermuda) were looking to the United States as a place to keep their assets, including their life savings, secure. Instead, their US-based broker-dealers placed their funds in an obscure, offshore entity whose annuity-like products offered none of the protections they would have received from comparable investments found in this country. There is also the issue of alleged misrepresentations and omissions made, including leading Northstar Financial Services (Bermuda) investors to believe that they were taking on hard if any, risk.

Already, Shepherd Smith Edwards and Kantas Investment Loss Lawyer teams have filed a number of Financial Industry Regulatory Authority (FINRA) lawsuits against broker-dealers whose financial advisors unsuitably recommended Northstar (Bermuda) investments to customers. Considering that as far back as 2011, Moody’s had already determined that this territory was a bad place for investing, and then Lindberg’s subsequent acquisition of the company and 2018—not to mention its failure in recent years to submit regulatory filings as required—there doesn’t seem to appear any good reason why brokers went on to the market and sell Northstar (Bermuda) to customers or continue to keep them in this investment when its troubles became apparent.

One can only assume that the high commissions and fees that brokerage firms and their financial advisors made from their sales of Northstar Financial Services (Bermuda) products to investors were the main incentives for them. Otherwise, why would broker-dealers allegedly be in breach of fiduciary duty, commit diligence failures, fail to properly supervise their registered representatives, make misrepresentations and omissions, or engage in unsuitability?

Can an Investor Who Is a Foreign National Sue a US-Based Broker-Dealer?

Absolutely. This is why you need to work with skilled Investment Loss Lawyer teams in the United States that can represent you in pursuing your broker misconduct lawsuit in FINRA arbitration. Broker-dealers can and should be held liable if their negligence enabled their financial advisors to engage in wrongful or careless acts that led to their losses.

For over 30 years, Northstar Financial Services (Bermuda) has been fighting for investors. We have recovered many millions of dollars for our clients from brokerage firms.

For your free, no-obligation initial consultation with the Investment Loss Lawyer Teams of Shepherd Smith Edwards and Kantas:

In the US: (800) 259-9010

International: WhatsApp (text only) (713) 227-2400

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