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J.P. Morgan Securities’ Recommendation of Old Mutual Bermuda Causes Mexican Investor To Suffer Six-Figure Loss

Old Mutual Investor Seeks Up To $500K in Damages

An investor from Mexico has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against J.P. Morgan Securities over the losses she suffered in Old Mutual (Bermuda). The off-shore entity is owned by Greg Lindberg’s Global Bankers, which also owns Northstar Financial Services (Bermuda). 

The latter is already the subject of many FINRA arbitration claims against the broker-dealers and their registered representatives that unsuitably recommended products from that off-shore entity to its customers.

In this Old Mutual Bermuda fraud claim, the claimant is seeking up to $500K in damages. Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is helping this investor in holding J.P. Morgan Securities accountable and fighting to recover her losses. 

SSEK Law Firm is representing both Northstar Financial Services (Bermuda) and Old Mutual (Bermuda) customers in the United States and abroad. A FINRA arbitration panel will preside over this case in Houston, Texas. 

Investor Trusted J.P Morgan Securities To Keep Her Money Safe 

This claimant, who resides in Mexico, had an account with Chase Bank in Texas. It is very common for those living in economically and/or politically unstable regions to look to the US for a safer haven for their money. 

It was Chase Bank that introduced this investor to the person that would become her Chase Investments broker. The latter entity is a subsidiary of Chase Bank. Then, in 2012, JP Morgan and Chase Investments merged.

The investor’s broker, who spoke Spanish, touted a supposedly better way for the customer to invest her money rather than in savings and checking accounts. Trusting this financial advisor, the claimant moved most of her assets to Chase Investments, where she was promised that her money would be managed in a way that would keep her assets safe. 

Instead, her investment broker recommended an Old Mutual (Bermuda) fixed annuity, overconcentrating her account with this off-shore product when there were more stable, less risky, comparable investments that were based in the US available. 

Like customers of Northstar Financial Services (Bermuda), Old Mutual (Bermuda) investors are now reeling from the losses they’ve suffered. The entities’ owner, Global Bankers’ head Greg Lindberg,  is behind bars for wire fraud and bribery. He is suspected of having funneled Northstar (Bermuda) and Old Mutual Bermuda’s assets to other companies that he operated. 

Northstar Financial Services (Bermuda) has filed for bankruptcy and is now in liquidation. Now, the best chance for investors who purchased products from either of these companies to recover their losses is to work with experienced FINRA attorneys. 

Unsuitability, Overconcentration, and Failure to Supervise 

Old Mutual (Bermuda) was clearly an unsuitable investment for this Mexican investor from the get-go. Yet, each year, her J.P. Morgan Securities broker continued to re-recommend that the claimant re-invest in this product. Clearly, a failure to conduct proper due diligence and a gross lack of supervision of the broker and this investor’s account occurred.

Old Mutual (Bermuda), like Northstar Financial Services (Bermuda), has paid high commissions and other fees and remunerations to the brokerage firms that sold their products. This appears to have been a motivation for many brokers and their broker-dealers to market and sell these off-shore investments to their customers. 

Seasoned Old Mutual (Bermuda) FINRA Attorneys 

To determine whether you may have grounds for a FINRA arbitration case over your Old Mutual (Bermuda) losses, in the US call SSEK Law Firm at (800) 259-9010 today. Linea Gratua Mexico es (800) 283-3403. International through WhatsApp (text only): (713) 227-2400.

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