Claimant Worked With Ex-Raymond James Broker Frank Van Houten Through UNFCU
An investor from the Caribbean has filed a six-figure Financial Industry Regulatory Authority (FINRA) arbitration claim against Raymond James Financial Services over investment losses he sustained.
One of Raymond James’ former brokers, Frank Lucien Van Houten, unsuitably recommended and sold Northstar Financial Services (Bermuda) products to the investor. This caused the customer to suffer a six-figure loss that he is now seeking to recover.
Our Northstar Financial Services (Bermuda) attorneys are representing this investor in FINRA arbitration against Raymond James Financial Services. The hearing will take place in Washington DC.
Inexperienced Investor Was Risk-Averse
The claimant was mostly invested in checking/savings accounts and bank products when he began working with Raymond James Financial advisor out of a United Nations Federal Credit Union (UNFCU) branch. Van Houten marketed the Northstar (Bermuda) products as CD-like, paying a nominal rate of less than 2% for a five-year term.
At no point did the Raymond James broker indicate to the investor that this was a risky investment. Even though Northstar Financial Services (Bermuda) is an offshore entity that lacks the kind of protections guaranteed with US-based investments.
Considering that Northstar Financial Services (Bermuda) filed for bankruptcy in 2020 and is now in liquidation proceedings clearly, misrepresentations and omissions were made to this customer. Many investors are unlikely to get their money back unless they file a FINRA arbitration claim.
This is someone who was not only an inexperienced investor, but also he was very risk-averse. The funds he placed in his Raymond James Financial Services account were for his retirement. Also, he was very specific about wanting to invest his money in a way that was safe and low risk.
Yet, Raymond James and its financial advisor recommended Northstar Financial Services (Bermuda) to him, concentrating his account in this off-shore investment.
High Commissions for Brokers that Sold Northstar (Bermuda) Products to Customers
Unfortunately, many broker-dealers were lured by the high commissions and other fees they could earn by selling Northstar (Bermuda) annuities and investment products to customers. These investors must now grapple with their losses. The off-shore entity’s financial condition and future only worsened when owner Greg Lindberg was convicted of wire fraud and bribery charges in 2020.
Lindberg has a reputation for funneling money from his annuity and insurance companies and redirecting the funds to special purpose vehicles in the US. This likely is what happened to Northstar Financial Services (Bermuda).
Raymond James Failed to Properly Supervise Its Broker
The lack of supervision by Raymond James Financial Services of Frank Van Houten and the claimant’s account was simply inexcusable. Van Houten is no longer a registered representative. Other firms where he used to work as a stockbroker include LPL Financial and Morgan Stanley.
Knowledgeable Northstar Financial Services (Bermuda) Attorneys
SSEK Law Firm represents dozens of investors, including foreign nationals, in pursuing their Northstar (Bermuda) losses from the US-based brokerage firms and brokers. Broker negligence and misconduct have played a big part in investors’ involvement in this now defunct offshore entity.
This is not the only investor we are fighting for who suffered losses in Northstar Financial Services (Bermuda) because of a Raymond James broker that they met through UNFCU.
- Global Interest Accumulator
- Global Advantage Select
- Global Index Product
- Global VIP Elite
- Global Advantage Plus Series
- PB Investment Holdings
You can also reach us internationally through WhatsApp (text only) at (713) 227-2400. For more information, read our Northstar Bermuda FAQs (Also available in Spanish: Northstar Bermuda Preguntas Frecuentes).