Investors’ Best Recourse For Financial Recovery is to Work With Experienced FINRA Attorneys
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) continues to zealously go after the brokerage firms whose registered representatives unsuitably recommended and sold Northstar Financial Services (Bermuda) products to their customers.
Already, we’ve filed several Financial Industry Regulatory Authority (FINRA) arbitration claims against broker-dealers on behalf of investors.
We are also continuing to monitor liquidation proceedings, which the Bermuda Supreme Court set into motion after it rejected Northstar Financial Services (Bermuda) Ltd.’s request for more time to restructure. The company filed for Chapter 15 bankruptcy in 2020.
The next step is a hearing on July 26th, 2021. The Court is expected to set up a process for Northstar account holders to be notified whether variable and fixed accounts should be considered segregated accounts under the British island territory’s law.
Northstar Financial Services (Bermuda) sold various insurance and investment products, including fixed- and variable- rate annuity products, including:
- Global Interest Accumulator
- Global VIP Elite
- Global Advantage Select
- Global Advantage Plus Series
- Global Index Product
However, given the company’s financial woes, it is unlikely that investors will recover much unless they have seasoned legal help.
Northstar (Bermuda) Investors Losses Could Be Greater Than $70M
Many Northstar Financial Services (Bermuda) investors have suffered six-figure losses in these off-shore products, which their brokers touted to them as safe investments. Estimated total losses are said to be over $70M.
Reports that owner Greg Lindberg likely funneled the company’s assets to other entities that he operated makes it very unlikely that investors will recover their money directly from Northstar.
The Joint Provisional Liquidator (JPL), who is overseeing Northstar’s liquidation proceedings, indicated that the company’s remaining assets are not enough for fixed-rate account holders to get back all of the money. This will likely continue to be the case once the Bermuda Supreme Court sets up a process allowing fixed account holders to put forward their claims for recovery.
Brokerage firms should have done their proper due diligence to ensure that Northstar Financial Services (Bermuda) investments were as secure and low risk as they claimed them to be. Instead, many customers were recommended to reinvest in these off-shore products even though there were better protected, comparable US-based investments that these investors could have availed of instead.
Even after Lindberg was indicted on criminal charges in 2019, many firms and their brokers never bothered to notify investors of this development or remove them from these investments. These brokerage firms and their registered representatives earned high fees, commissions, and other financial incentives from selling Northstar (Bermuda) products to their customers.
Skilled FINRA Arbitration Attorneys
SSEK Law Firm is committed to helping Northstar Financial Services (Bermuda) investors in recovering their losses against the firms that unsuitably sold these off-shore products, including:
- Truist Investment Services
- Bankoh Investment Services
- Raymond James Financial Services
- Unionbanc Investment Services
- Hancock Whitney Investment Services
- Cetera Investment Services
- J.P. Morgan Securities and others
Unsuitability, misrepresentations and omissions, overconcentration, gross negligence, and failure to supervise are among the allegations we have already brought against these firms in FINRA arbitration on behalf of our clients.
SSEK Law Firm is currently fighting for Northstar Financial Services (Bermuda) investors in the US, throughout the Americas, and in Asia. In the United States, call (800) 259-9010 to speak with an experienced securities arbitration lawyer to discuss your Northstar Financial Services (Bermuda) losses. Internationally, via WhatsApp (text only): (713) 227-2400.