Senior Investor’s Funds Were 100% Concentrated in Risky Offshore Investment
Our Northstar Financial Services (Bermuda) investment lawyers have filed yet another FINRA arbitration claim against J.P. Morgan Securities, LLC (JPMS) over losses suffered by a foreign national. The claimant is a nun and elderly investor from Mexico who entrusted her inheritance to the firm.
Instead, her J.P. Morgan Securities broker unsuitably recommended the now-defunct Omnia Ltd., previously called Old Mutual (Bermuda)/Beechwood.
Omnia was acquired by Global Bankers and its owner, billionaire Greg Lindberg in 2017. The latter then acquired Northstar Financial Services (Bermuda) in 2018. Unfortunately, Lindberg was indicted on criminal charges in 2019. He was later convicted of wire fraud and bribery in 2020. Both Omnia and Northstar (Bermuda) have since filed for bankruptcy.
This Mexican investor is now seeking up to $500K in damages from J.P. Morgan Securities. Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent her in FINRA arbitration.
Old Mutual (Bermuda) Investor Alleges Misrepresentations and Omissions
The claimant had initially deposited her six-figure inheritance at a Chase bank in Houston, Texas, which is where she met her J.P. Morgan securities broker. She was promised that her funds would be invested in a way that would allow her to count on safe returns with a minimal amount of risk.
Instead, her financial advisor overconcentrated her funds in Omnia, which even then was an obscure, risky offshore investment. Considering that she was seeking safety and stability for her funds in the US, her Old Mutual (Bermuda)/Omnia investment was an unsuitable recommendation from the start.
J.P. Morgan Securities also made misrepresentations and omissions, including failing to appraise this investor of certain adverse facts about Old Mutual (Bermuda)/Beechwood/Omnia, such as:
- This entity failed to meet statutory disclosures with the Bermuda government in 2018 and 2019.
- Lindberg had a reputation for overleveraging accounts.
- In October 2018, the US Department of Justice launched a criminal investigation.
- Lindberg was indicted in 2019 and convicted the following year.
The J.P. Morgan Securities financial advisor continued to claim that all was well with the investment and no changes needed to be made: meaning earlier recommendations should be held.
J.P. Morgan Securities Committed Supervisory Failures
This Mexican investor trusted J.P. Morgan Securities, which failed to supervise the customer’s account and the financial advisor’s activities. One can only assume that the excess commissions earned by the broker for recommending this offshore life insurance policy were an incentive for recommending Old Mutual(Bermuda) investments as opposed to looking out for the client’s best interests.
Another J.P. Morgan Securities financial advisor, later assigned to this customer, also concluded that all was well despite the warning signs. In addition to failure to supervise, unsuitability, concentration, and misrepresentations and omissions, the investor is also alleging broker negligence, fraud, and other claims.
Seasoned Old Mutual (Bermuda) Securities Lawyers
SSEK Law Firm represents dozens of investors over losses they sustained in Northstar Financial Services(Bermuda), Old Mutual (Bermuda), and affiliates PB Investment Holdings and PB Life and Annuity.
Many of these claimants are foreign nationals from Latin America, Central America, Asia, and the Caribbean that sought protection for their money in the US. Instead, J.P. Morgan Securities and many other broker-dealers unsuitably invested their funds in these obscure, risky, and troubled entities while downplaying the risks.
Call our securities lawyers at the following today:
- United States: (800) 259-9010
- International: (713) 227-2400 (Whatsapp text only)
- Linea Gratuita Mexico: (800) 283-3403