Investors Can Still Pursue Damages from Bankoh, Truist, and Ocean Financial Services
The Bermuda Supreme Court has turned down a request by Northstar Financial Services (Bermuda) Ltd.’s management asking for more time to pursue restructuring. Northstar had filed for Chapter 15 bankruptcy last year.
The Court’s ruling means that the company will be liquidated, with the proceeds going to creditors. Specifically, what this means for Northstar Financial Services (Bermuda) investors is that the Bermuda Supreme Court must approve such payments before they can be issued to them.
However, even as liquidation proceedings may make getting money back directly from Northstar more challenging, this does not mean you cannot pursue damages from the financial firms that sold you Northstar Financial Services (Bermuda) investments. These firms include Bankoh Investment Services, Truist Investment Services, Ocean Financial Services, and other broker-dealers.
Our Northstar Financial Services (Bermuda) investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing investors in their fraud claims against the brokerage firms who sold Northstar products to their customers. If you are one of these investors seeking to recover your losses, contact SSEK Law Firm today at (800) 259-9010.
Bankoh Investment Services Sends Letter About Northstar Liquidation to Customers
One of the brokerage firms whose customers we’ve been speaking to about their Northstar Financial Services (Bermuda) losses is Bankoh Investment Services, which is the securities arm of Bank of Hawaii. In a letter sent to customers this week, the financial firm notified them about the Bermuda Supreme Court’s ruling.
Bankoh Investment Services also noted in the letter that according to Deloitte, which is acting as Joint Provisional Liquidator, it is likely that Northstar’s remaining assets won’t be enough to give back the full amount owed to fixed-rate contract holders. This is yet another reason why you need experienced Northstar Financial Services (Bermuda) securities lawyers like SSEK Law Firm fighting for your financial recovery.
Already, Bankoh Investment Services is facing customer complaints for selling Northstar investments to customers. This includes a $900K Financial Industry Regulatory Authority (FINRA) arbitration claim brought over losses suffered by customers of Bankoh Investment Services broker Yoko Farias.
Northstar Investment Services (Bermuda) Investors May Have Lost Millions
Unfortunately, investors of Northstar Financial Services (Bermuda) are now grappling with significant losses in the wake of the company’s bankruptcy filing and prior to that the suspension of monthly redemptions, as well as the criminal conviction of its owner Greg Lindberg. The billionaire, who was sentenced to prison, has a record of taking the assets of his annuity and insurance companies and redirecting them to his other companies.
Northstar investors likely were drawn to the tax benefits they were supposed to garner from investments based out of Bermuda. Many were told that they could expect Northstar Financial Services (Bermuda) products to be CD-like, conservative, and low risk. Instead, their decision to invest in Northstar’s variable- and fixed-rate annuity products has caused many of them to lose money.
Broker-Dealer Negligence Involving Northstar Investments
Brokerage firms must conduct the proper due diligence before recommending any financial product to make sure it is a safe and legitimate investment. When failure to fulfill this or other fiduciary duties to customers contributes to losses involving financial product failures, the investors who were harmed may have grounds for pursuing damages.