Raymond James Broker Made Unsuitable Recommendation That Led To Northstar Financial Bermuda Losses
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) will be filing yet another Financial Industry Regulatory Authority (FINRA) arbitration claim against a brokerage firm for unsuitably recommending Northstar Financial Services (Bermuda) products to a customer.
This time, the broker-dealer that we are pursuing for damages is Raymond James Financial Services. One of the firm’s financial advisors unsuitably marketed and sold this off-shore entity’s annuities through the United Nations Federal Credit Union (UNFCU).
UNFCU is an American credit union. Its members include United Nations employees, consultants, retirees, and their family members. Our client, who is a foreign national and a UNFCU member, entrusted Raymond James to help properly invest and protect their funds.
Instead, the broker-dealer recommended a risky off-shore product when there were better protected, comparable US-based investments available. Even if UNFCU didn’t directly sell Northstar Financial (Bermuda) products to members, it should have made sure that these investments were safe.
Our knowledgeable Northstar Financial Services (Bermuda) investment lawyers represent investors all over the world whose US-based brokerage unsuitably marketed and sold this company’s products to them.
Now, Northstar (Bermuda) is in liquidation after filing for bankruptcy. Its owner, billionaire Greg Lindberg, is behind bars for committing wire fraud and bribery. He also very likely funneled funds from this off-shore entity to special purpose vehicles in the US.
Northstar Financial Services (Bermuda) investors’ best bet for financial recovery is to file their own FINRA arbitration claim. This is not the kind of securities case that you want to pursue without seasoned legal help.
Investors Who Sought Safe Haven For Their Money Were Sold Risky Off-Shore Product
SSEK Law Firm is already pursuing many FINRA arbitration claims against the broker-dealers that sold Northstar (Bermuda) products; Bankoh Investment Services and SunTrust Investment Services are just two of these firms. A number of our clients are foreign nationals who live in Central America, South America, and Asia. They had looked to the United States as a safe haven for their funds.
Instead, what they’ve experienced is huge losses, even as the brokerage firms who sold Northstar (Bermuda) investment products earned high commissions, fees, and other incentives from these sales. Frankly, these commissions appear to have been the main motivation for selling these off-shore investments to these customers.
To be clear, there is usually nothing wrong with recommending off-shore annuities to investors. However, for investors looking for stability, Northstar (Bermuda) annuities were too risky from the start. Some customers even had their brokerage accounts overconcentrated with these products.
Even after Lindberg was indicted in 2019, many brokerage firms continued to sell Northstar Financial (Bermuda) investments. These included Global VIP Elite, Global Index Product, Global Advantage Plus Series, Global Interest Accumulator, and Global Advantage Select. Their financial advisors even renewed the annuity contracts of customers who already were invested in this off-shore entity.
What Should You Do If You Lost Money in Northstar Financial Services Bermuda?
If you were sold Northstar (Bermuda) investments by a Raymond James broker, or any other financial advisor, contact us today. Our skilled team of Northstar Financial Services (Bermuda) attorneys can help you to recover your losses.
Our lawyers offer a free, no-obligation case consultation. We are also continuing to speak with United Nations Federal Credit Union members who suffered losses from these products. For more information, visit our FAQ pages below.