Central American Retiree Suffers Six-Figure Loss After Truist Investment Services Unsuitably Recommends Northstar Financial Services (Bermuda)

FINRA Arbitration Hearing Will Take Place in Boca Raton, Florida

An elderly Venezuelan investor is seeking six figures in damages from Truist Investment Services (aka SunTrust Investment Services) over losses he suffered in Northstar Financial Services (Bermuda). The claimant contends that the firm overconcentrated his account by heavily investing his life savings in this off-shore entity, which is now undergoing liquidations proceedings after filing for bankruptcy. 

This is one of a number of FINRA arbitration claims that our Northstar Financial Services (Bermuda) attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) have filed against Truist Investment Services and other US-based brokerage firms for unsuitably marketing Northstar (Bermuda). 

If you sustained losses in Northstar Financial Services (Bermuda), contact SSEK Law Firm today.

Investor Wanted Safe, Fixed-Term Investment, Instead Was Sold Risky Product 

The claimant, who is retired, had looked to the US as a safe haven for his assets because of the economic turmoil in the region where he lives. 

He initially only had a bank account with SunTrust Bank in Miami, which held his lifetime of savings. SunTrust proceeded to refer this customer to Truist Investment Services, whose financial advisor then concentrated the investor’s funds in a Northstar (Bermuda) fixed-contract annuity. 

The Truist broker reassured him that this was a product that fit his investing goals. Although there is generally nothing wrong with a financial advisor recommending off-shore investments, there was no good reason for recommending Northstar Financial Services (Bermuda) to this Central American retiree.  

This is especially true considering that there were comparable, better-protected US-based products that weren’t as risky. This was an unsuitable investment recommendation for this customer from the get-go.

In 2019, this investor attempted to redeem his investment in Northstar (Bermuda) and have his funds deposited in a bank account. It was then that the Bermuda entity notified him by letter that his assets were frozen because redemptions had exceeded free cash flow.

This Truist customer then spoke to his financial advisor, who falsely told him that although there were liquidity issues the problem would resolve. Considering that Northstar Financial Services (Bermuda) owner Greg Lindberg was indicted earlier that year, it is surprising that the broker-dealer didn’t do more to help this investor get out.

Lindberg would be convicted of bribery and conspiracy to commit wire fraud charges in 2020 and he is now in prison. Now, thousands of Northstar Financial Services (Bermuda) investors have had to grapple with their losses and how to pursue damages.

The Senior Retiree Was Taken Advantage of By Truist Investment Services Broker 

Under Florida civil code, this claimant is a “vulnerable adult.” In his FINRA arbitration claim, he is accusing Truist Investment Services of the abuse, neglect, and exploitation of elderly persons and disabled adults. He is also alleging gross negligence, misrepresentations and omissions, overconcentration, supervisory failures, and breach of fiduciary duty.

A simple branch audit could have easily identified that Northstar Financial Services (Bermuda) was not a good fit for this particular investor. Any reasonable supervisor doing their job would have never signed off on recommending this off-shore product to him or the renewals that followed. 

Considering that this off-shore entity paid brokers high commissions and fees for selling its products, financial profit for the brokerage firm—rather this client’s best interests—appears to have been the likely motivation.  

Skilled Northstar Financial Services (Bermuda) Lawyers

SSEK Law Firm represents investors throughout the world in pursuing their Northstar Financial Services (Bermuda) losses from the US-based broker-dealers and financial advisors who irresponsibly and unsuitably sold them investments in:

  • Global Advantage Select
  • Global Index Product
  • Global Advantage Plus Series
  • Global Interest Accumulator
  • Global VIP Elite
  • PB Investment Holdings 

Contact our skilled investment fraud lawyers today at (800) 259-9010 or internationally, via WhatsApp (text only) at 713-227-2400.

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