Retirees Seek Up to $500K in Northstar Financial Services (Bermuda) Claim Against J.P. Morgan Securities

FINRA Arbitration Claim Was Brought by Mexican Investors Who Trusted US Broker-Dealer To Keep Their Assets Safe

A retired couple from Mexico is requesting up to $500K plus interest and costs from J.P. Morgan Securities, LLC over losses they suffered from investing in a Northstar Financial Services (Bermuda) variable annuity. 

Because the carrier, Northstar Bermuda, is located off-shore in Bermuda, the policy that the investors purchased was not protected in the same way as those sold by US-based carriers. Now, the claimants are alleging the following: 

Northstar Financial Services (Bermuda) filed for bankruptcy protection last year and is now in the equivalent of a receivership. It is no longer solvent and under order to liquidate by the Bermuda government. 

Shepherd Smith Edwards and Kantas (SSEK Law Firm at are representing these Mexican investors in their case against J.P. Morgan Securities. The Financial Industry Regulatory Authority (FINRA) arbitration hearing will take place in Houston, Texas. 

Why Did a J.P. Morgan Securities Broker Recommend an Off-Shore Product? 

These senior investors specifically travelled to Texas to set up a US bank account. They wanted protection for their assets from Mexico’s fluctuating currency that was being negatively affected by government and economic instability. 

While it was reasonable for their J.P. Morgan Securities broker to recommend that they invest in a variable annuity — typically a safe and suitable investment for most retail investors seeking principal protection — it was unsuitable to recommend a variable annuity from Northstar Bermuda. 

The fact that this was an offshore carrier automatically exposed the claimants to undue risk. 

According to SSEK Law Firm attorney, Luis J. Acevedo-Bengoechea, “People from Latin America bring their assets to invest in the US seeking stability. It is reprehensible that a licensed financial advisor would then recommend a product that is held off-shore when reasonable US investments were available.”

It is likely that the JP Morgan Securities broker who worked with these claimants recommended products from Northstar Financial Services (Bermuda), which paid commissions and other incentives that were considered higher than standard, to other customers. 

Northstar Bermuda Investors Are Fighting to Recover Their Losses 

Northstar Financial Services (Bermuda) has offered variable- and fixed-rate annuity investment products to investors, many of whom were drawn to these products because of the tax benefits offered in Bermuda. 

Global Bankers and its owner Greg Lindberg purchased the company in 2018. Lindberg is now behind bars for wire fraud and bribery. Since his criminal conviction, Northstar Financial Services (Bermuda) investors have been trying to get their money back. 

Unfortunately, Lindberg likely directed Northstar Financial Services (Bermuda)’s assets to other companies he operated, leaving the former with an over $260M deficit.  

Representing Northstar Financial Services (Bermuda) Investors in the US and Abroad 

SSEK Law Firm also recently filed a $500K FINRA arbitration claim against Truist Investment Services of SunTrust Investment Services for losses suffered by another retiree in Latin America because of his Northstar Financial Services (Bermuda) investment. 

We are also looking into similar complaints brought by customers of Ocean Financial Services, Bankoh Investment Services, J.P. Morgan Securities, and other broker-dealers who may have unsuitably recommended these products to their customers. 

Our investment fraud attorneys represent investors throughout the United States as well as those who live outside the country but worked with a US-based brokerage firm. Call us at (800) 259-9010 or (713) 583-1217 today.

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