Northstar Bermuda Hearing Will Take Place in San Francisco, California
Two claimants from Tokyo, Japan are pursuing up to $500K in damages from UnionBanc Investment Services, LLC. The investors, who are related, contend that their UnionBanc broker overconcentrated all of their assets in Northstar Financial Services (Bermuda) and caused them significant six-figure investment losses.
Our investor fraud attorneys are representing these Japanese investors in their FINRA arbitration claim. A panel of three arbitrators will hear their case in San Francisco, California.
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is fighting for Northstar Financial Services (Bermuda) investors against the brokerage firms that unsuitably recommended and sold them this off-shore account to their financial detriment. Already, we have investigated a number of brokerage firms, including but not limited to:
- Raymond James Financial
- Bankoh Investment Services
- Truist Investment Services
- SunTrust Investment Services
Contact us today so that we can help you explore your legal options to recover your losses.
UnionBanc Unsuitably Recommended Northstar Financial Services (Bermuda) Products to Conservative Investors
The investors initially only had traditional accounts at Union Bank, but someone there connected them with a UnionBanc broker. UnionBanc Investment Services is a Union Bank subsidiary.
It is unclear why the UnionBanc financial advisor would recommend Northstar Financial Service (Bermuda) products, which paid very little, to these customers that could have invested in a US-based annuity that offered the same tax features but was better regulated.
Yet, the UnionBanc stockbroker claimed Northstar was a safe investment that supposedly met the claimants’ low-risk threshold along with their desire to make returns. These inexperienced investors trusted the advice of their financial advisor. Now, they are left with serious investment losses.
Northstar Financial Services (Bermuda) is in liquidation proceedings after filing for bankruptcy protection. Its owner Greg Lindberg is serving several years in prison. He also likely funneled money from this off-shore entity to US-based special purpose vehicles that he ran. It appears that the only way that investors will get their money back is if they work with seasoned securities lawyers.
High Commissions Likely Incentive For UnionBanc Investment Services Selling Off-Shore Annuity
Considering that the Northstar product that the claimants invested was just a one-year short-term annuity, UnionBanc had every opportunity —especially after Lindberg’s arrest—to remove these customers from this investment.
Instead, whenever the annuity expired, the firm would renew it for these investors, who had no idea that the risk/reward ratio was way off. Meanwhile, UnionBanc and its financial advisor earned high commissions and fees from marketing and selling Northstar Financial Services (Bermuda) to customers.
The brokerage firm’s supervision of their broker and these claimants’ accounts was lacking and grossly negligent. Had there been proper supervision, it would have been easy to determine that Northstar (Bermuda) was an unsuitable investment for these customers. Instead, misrepresentations and omissions were made to them.
Seasoned Securities Attorneys Can Help You Recoup Investment Losses
Investors of this off-shore company may be owed up to $70M. If you invested in any of the following Northstar Financial Services (Bermuda) products, reach out for legal advice today:
- Global Interest Accumulator
- Global VIP Elite
- Global Advantage Select
- Global Advantage Plus Series
- Global Index Product
If you are a foreign national who suffered losses in Northstar (Bermuda) investments that were sold to you by a US-based broker-dealer, call SSEK Law Firm today at (800) 259-9010. If based internationally, text us via WhatsApp at (713) 227-2400 to speak with an experienced Northstar Financial Services (Bermuda) lawyer.