Claimant Alleges Unsuitable Offshore Investment Led to Significant Losses
An investor who lives in Trinidad and Tobago has filed an arbitration claim against Truist Investment Services over losses he sustained in Northstar Financial Services (Bermuda). The claimant seeks up to six figures in damages. His broker allegedly advised him to invest in this risky, offshore-like annuity product. These recommendations happened despite the claimant stating he was seeking safety and security for his family’s assets.
Our Northstar (Bermuda) investment attorneys represent this investor in FINRA arbitration against Truist Investment Services. Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represents many other claimants against Truist, a SunTrust Investment Services, Inc. broker-dealer subsidiary.
Truist Investment Broker Accused of Overconcentrating Claimant’s Savings in Northstar (Bermuda)
This investor and his wife had a bank account with SunTrust for years. It was through a SunTrust branch that they met their Truist Investment Services broker. The couple allegedly were recommended to do more with their money than keep it in savings. Their Truist financial advisor then overconcentrated a huge chunk of their assets in Northstar (Bermuda) products.
Northstar Financial Services (Bermuda) has filed for bankruptcy protection and is now in liquidation proceedings. It is unclear why this risky, illiquid offshore investment would be recommended to foreign nationals seeking safety and stability for their assets in the United States. Let alone that his funds would go on to be nearly 100% concentrated in Northstar (Bermuda).
There were safer, better protected, and comparable US-based investments that brokers should have recommended. One can only assume that the high commissions paid to broker-dealers and their financial advisors for selling Northstar Financial Services (Bermuda) products was the main incentive for getting this investor to buy.
This claimant’s Truist Investment broker allegedly misrepresented the Northstar (Bermuda) investment to him as extremely safe and one in which his principal would be guaranteed. Our client, an inexperienced investor, trusted his financial advisor, who allegedly omitted many of the risks and red flags while continuing to assure him that all was well.
Among the developments broker should have notified the claimant about include:
- An assessment by Moody’s eleven years ago in 2011 gave a negative outlook for Bermuda as a place to invest.
- Northstar Financial Services (Bermuda) failed to prepare and submit statutory financial statements, statutory financial returns, capital and solvency returns, declarations of compliance, and certificates of compliance for the years ending in 2018 and 2019.
- The indictment and 2020 conviction of Northstar Financial Services (Bermuda) owner Greg Lindberg for bribery and wire fraud.
Lindberg is known for utilizing his annuity and asset companies to funnel funds to other companies under his control. He is believed to have done the same with Northstar (Bermuda). He also has a reputation for overleveraging his positions. As far back as 2018, the US Department of Justice had launched a probe into his activities in Bermuda.
This investor contends that Truist Investment Services was negligent, possibly committed fraud, and allegedly acted in bad faith. Visit Northstar Financial Services (Bermuda) to find out more.
Seasoned Northstar Financial Services (Bermuda) Lawyers
SSEK Law Firm represents dozens of investors, including foreign nationals from all over the world, against the broker-dealers that sold them Northstar Financial Services (Bermuda) products. If you are a Northstar (Bermuda) investor and would like to explore your legal options, contact SSEK Law Firm today:
In the United States: (866) 904-5133
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