Joint Provisional Liquidators & Deloitte Updates Credit Holders and Policyholders
On February 23, 2022, Rachelle Frisby, the Deloitte Financial Advisory head in Bermuda and the British Virgin Islands, sent a letter to creditors and policyholders updating them about the liquidation proceedings involving Northstar Financial Services (Bermuda) and Omnia, Ltd. (formerly Old Mutual (Bermuda)). Northstar (Bermuda) filed for bankruptcy in 2020. Omnia submitted its filing in 2019.
Both entities, which Global Bankers previously acquired, have come under scrutiny in the wake of owner Greg Linberg’s conviction for conspiracy to commit wire fraud and bribery, as well as their subsequent liquidation proceedings. Meanwhile, investors of both entities have struggled to recover their investment losses.
Many of them are foreign nationals who sought a safe haven for their assets in the US and were led to believe that they were investing in low-risk, secure investments. Instead, their brokers and brokerage firms placed their funds in these risky, obscure offshore entities, and they are now paying the price.
While class representatives for the different investor classes have been appointed as part of liquidation proceedings, it is essential to realize that this is mere wheel spinning when it comes to investors receiving financial recovery.
Waiting for the liquidation proceedings to play out will not maximize your chances of obtaining damages. However, having seasoned Northstar Financial Services (Bermuda) lawyers representing you in Financial Industry Regulatory Authority (FINRA) arbitration against your broker-dealer will.
Shepherd Smith Edwards and Kantas (SSEK Law Firm) is representing dozens of investors against the brokerage firms that sold Northstar (Bermuda) and Old Mutual (Bermuda) investment products to customers. Contact us today.
Class Representatives Assigned For Fixed And Variable Annuity Classes
Frisby, one of the joint provisional liquidators (JPLs) in the Northstar (Bermuda) and Omnia liquidation proceedings, said that class representatives were appointed for the Fixed and Variable Classes and for the General Creditor Class.
Investors of mutual fund assets belong to the Variable Class, while investors of fixed- or indexed- products are part of the Fixed Class. General creditors are part of the General Creditor Class. The products in question are:
- Guaranteed Rate Plan
- Guaranteed Index Plan
- Universal Investment Plan
Northstar Financial Services (Bermuda) Products
- Global Advantage
- Global Advantage III, V
- Global Advantage Select
- Global Interest Accumulator
- Global Investment Plan
- Global Index Protect
- Global Variable Annuity
- Global VIP
- Global VIP Elite
- Met Group Variable Deferred Annuity
- Met Global Asset Portfolio
- Met Universal Life
- Met Variable Universal Life
- PB Investment Holdings
Brokers Prioritized High Commissions Over Investors’ Best Interests
One can only assume that broker-dealers recommended and sold Northstar (Bermuda) and Old Mutual (Bermuda)/Omnia investments to customers because of the high commissions they would earn. For many investors, including those whose accounts were concentrated on these products, these investments were too risky, with minimal upsides. Many were blindsided in the wake of learning that their variable, fixed- and indexed – products from these two entities are now likely worthless.
Skilled Northstar (Bermuda) Investment Lawyers
SSEK Law Firm represents investors worldwide in their Northstar Financial Services (Bermuda) and Omnia arbitration claims against their brokerage firms. In the US, call (800) 259-9010. You can also contact us internationally through WhatsApp (text only) at 713-227-2400. Linea Gratua Mexico: 800-238-3403.
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