Retiree Files $500K Northstar Financial Services (Bermuda) Fraud Claim Against Truist Investment Services

Latin American Investor Alleges Elder Financial Fraud And Abuse 

In a Financial Industry Regulatory Authority (FINRA) arbitration claim against Truist Investment Services, Inc. (aka SunTrust Investment Services, Inc.), a retiree in Latin America is seeking up to $500K in damages. The claimant contends that her broker unsuitably recommended that she invest that amount in Northstar Financial Services (Bermuda) Ltd. The company filed for bankruptcy protection last year. 

Truist is SunTrust Bank’s broker-dealer unit. The firm is registered with FINRA. Both entities’ agents heavily promoted Northstar Financial Services (Bermuda)’s fixed- and variable-rate annuity and investment products, which paid commissions, bonuses and other incentives that were greater than what the more typical SunTrust bank products offered. 

Now, this claimant is alleging misrepresentations, failure to supervise, negligence, breach of contract, abuse and exploitation of an elderly person, gross negligence, unjust enrichment, and other breaches of duty. A panel of FINRA arbitrators in Miami, Florida will hear her case. 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm at, our investment fraud lawyers are representing this retiree in her FINRA arbitration claim against Truist Investment Services, Inc.

We represent investors throughout the United States and abroad with securities fraud cases against broker-dealers and banks based in this country.  Call (800) 259-9010 today. For Florida investors, you can also reach us at (813) 560-2992. Hablamos Español.

Senior Investor Wanted Unnecessary Risk to Keep Her Assets Safe 

The claimant is a retired investor who sought a safe haven for her assets in the United States. A long-term SunTrust Bank customer who also worked with a Truist broker, the investor did not want to take on any unnecessary risk. Most of her investments, including those linked to her Miami bank account, were in bank products and checking/savings accounts. 

Instead, in 2018, her banker recommended that she invest half a million dollars in Northstar Financial Services (Bermuda). The entity is now under liquidation order by Bermuda’s government and is no longer solvent.

Her Truist advisor, like so many others who marketed Northstar Financial Services (Bermuda) products, claimed this investment was safe, like a CD, and would pay 3.75% for a 5-year term. Instead, investor redemptions were suspended and their liquidation efforts are being denied.

The claimant was never apprised that this was a risky investment. Her Truist Investment Services financial advisor indicated that appropriate due diligence had been conducted into Northstar Financial Services (Bermuda) and that the investment was suitable for her. In fact, given her investing profile, it was highly unsuitable. 

Northstar Financial Investors’ Unlikely To Recover Losses Without Legal Help 

Northstar Financial Services (Bermuda) promoted how the laws and regulations in Bermuda could provide investors with certain tax shelters and benefits that were not available to US-based investments. Acquired by billionaire Greg Lindberg’s Global Bankers in 2018, Lindberg was convicted of bribery and wire fraud last year. He is infamous for using his annuity and insurance companies to direct money to the other entities he operated. 

Northstar Financial Services (Bermuda) is estimated to now have an over $260M deficit. Last September, it could report no more than $8M in assets. It is unknown whether the receiver in Bermuda will recover anything. 

Fighting For Northstar Financial Services (Bermuda) Investors’ Financial Recovery 

Contact SSEK Law Firm to schedule your free, no-obligation case consultation with one of our skilled securities fraud attorneys. We are continuing to investigate SunTrust Investment Services and Truist brokers, as well as the other brokerage firms that recommended this investment to customers.

Call us at (800) 259-9010 today if you live anywhere in the United States or abroad. Hablamos Español.

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