Ocean Financial Services’ Recommendation of Northstar Financial Services (Bermuda) Leads to Six-Figure Loss for Houston Investor
Latin American Investor Pursuing Up to $500K in Northstar Financial Services (Bermuda) Damages
An older Latin American investor who was unsuitably recommended and sold a Northstar Financial Services (Bermuda) product is requesting up to $500K in damages from Ocean Financial Services. The claimant, who initially just had accounts at Ocean Bank, was advised to invest her money beyond checking and bank accounts.
This would result in Ocean Financial Services overconcentrating a huge chunk of assets belonging to her and her mother in Northstar Financial Services (Bermuda), which is now defunct. Not only that, but the firm should have never recommended these products to this investor after 2015, which is when she moved to the United States.
By law, Northstar Financial Services (Bermuda) cannot be marketed or sold to US residents. She even notified her Ocean Financial Services broker of her geographic transfer. Yet despite being familiar with the rules, the broker-dealer recommended this annuity-like product to her.
Our Northstar (Bermuda) investment lawyers represent this claimant, along with many others, in their FINRA arbitration claim against Ocean Financial Services. Contact us today at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com).
Annuity-Like Northstar (Bermuda) Product Was Misrepresented and Unsuitably Recommended
This investor made it clear that she was looking to take on the least amount of risk from the start. She was promised safe returns and that her account would be set up for guaranteed principal and protection. Instead, her Ocean Financial Services broker placed her in a highly risky and unsuitable product.
This offshore annuity-like investment called the Guaranteed Investment Contract (GIC) was misrepresented as meeting all of the protection requirements she sought.
Little did she know, nor did Ocean Financial Services apprise her, that Northstar (Bermuda) was in financial trouble. The alternative asset firm was acquired in 2018 by Greg Lindberg and his Global Bankers. Since then the billionaire was indicted in 2019 and convicted of bribery and wire fraud. Many of his companies, including Northstar Financial Services (Bermuda), filed for bankruptcy in 2020.
Unfortunately, a huge portion of this investor’s net worth was entrusted to Ocean Financial Services, which continued to assure her that the Northstar (Bermuda) product was safe. One can only assume that the excess commissions earned by the Ocean Financial broker were the impetus for recommending GIC to this claimant.
Going back to 2011, Moody’s had already given Bermuda a negative outlook as a place for investing, partly because it had no central Bank. By 2018 and 2019, Northstar Financial Services (Bermuda) had failed to submit important documentation to the authorities there. This included statutory financial statements and returns, capital and solvency returns, compliance declarations, and compliance certificates. Also, Northstar (Bermuda) was unrated.
Brokerage firms have a duty to update advisors on important information about their clients’ investments. Yet, even as this investor’s product was reviewed (or should have been reviewed) annually by the broker-dealer, no steps were taken to remove her from Northstar (Bermuda).
Clearly, gross supervisory failures by Ocean Financial Services were a factor, as were negligence, unsuitability, misrepresentations and omissions, and fraud.
Seasoned Northstar Financial Services (Bermuda)
It is unknown whether any Northstar (Bermuda) investor can recover anything through the receiver in Bermuda even though liquidation proceedings have begun. Moreover, Lindberg likely funneled funds from this offshore entity to special purpose vehicles in the US. This is why you need to file your own FINRA arbitration claim in which experienced securities lawyers represent you.
Our Northstar Financial Services (Bermuda) investment attorneys work with dozens of foreign nationals from Asia, Latin America, and Central America to pursue damages from the many broker-dealers that sold them investments in this obscure, risky offshore entity.
Call SSEK Law Firm at the following phone numbers:
- United States: (800) 259-9010
- International: (713) 227-2400 via via WhatsApp (text only)
- Mexico: (800) 283-3403
More Information About Northstar (Bermuda) and a list of its products