Cetera and Other Broker-Dealers May Have Unsuitably Sold St. George’s Ltd Products to Customers
Our broker misconduct lawyers are looking into claims of losses by investors who were marketed and sold products from St. George’s, Ltd. The Bermuda-based life insurance company has been in liquidation proceedings since 2019. Its owner, Ramesh Dusoroth, is accused of defrauding investors of millions of dollars.
The joint provisional liquidators in this endeavor involving St. George’s Ltd. are John Johnston and Rachel Frisby of Deloitte, Ltd. Both of them are also involved in the liquidation proceedings of Northstar Financial Services (Bermuda), another offshore company that has been the cause of investment losses for many foreign nationals. Northstar (Bermuda) owner Greg Lindberg is now in prison, and he also likely misappropriated investors’ money.
Cetera Investment Services and other financial firms may have sold Northstar (Bermuda) and St. George’s Ltd. products to customers for whom less risky, better-protected investments would have been the safer, more suitable fit.
If you suffered losses in St. George’s Ltd., please contact us today at Shepherd Smith Edward and Kantas (SSEK Law Firm at investorlawyers.com).
Georges Ltd. Owner Was Subject of International Search Following Fraud Allegations
According to The Royal Gazette, in 2019, police launched an international search for St. George’s Ltd. owner Ramesh Dusoroth following allegations that he defrauded investors.
The search came after he was arrested and charged with fraudulent inducement to deposit or invest, transferring criminal property, and transmitting false information to the Bermuda Monetary Authority. He then fled. Dusoroth was apprehended later that year in the Netherlands.
St. George’s Ltd. was one of the companies that were part of a group that Dusoroth controlled via the Maltese company, Les Petit Fourmies Ltd. Other companies in the group included PSSI Ltd., CLPI Ltd., Mille Roses Ltd., and Lioncross Ltd., all based in Malta.
MaltaToday reported in August 2019 that there had been red flags involving this group. This purportedly included Les Petit Fourmies’ failure to turn in accounts for 2015 and 2016 until 2019.
Also, PricewaterhouseCoopers auditors were said to have expressed dissatisfaction regarding the recoverability of loans that the company was “making to related companies and subsidiaries.”
Seasoned Investment Loss Lawyers
It is important that your financial advisor only recommend products suitable for your investment goals, risk tolerance level, and investing experience. Unfortunately, the lure of high commissions can override some brokers’ duty to sell you investments that should only be in your best interests.
Already, our investment lawyers are representing dozens of investors in Financial Industry Regulatory Authority (FINRA) arbitration against Cetera Investment Services and the other brokerage firms that sold them annuities from Northstar Financial Services (Bermuda).