Northstar Financial Services (Bermuda) Ltd
If you suffered losses from investments from Northstar Financial Services (Bermuda), Ltd please contact our investment fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.
The company’s products, including different types of investment and insurance products, were sold by brokerage firms in the United States, including SunTrust Investment Services, Inc., Bankoh Investment Services, which is a nonbank subsidiary of Bank of Hawaii, Ocean Financial Services, LLC, and others.
Now, investors are claiming that stockbrokers and financial advisors may have misrepresented Northstar Financial Services (Bermuda) investments as low-risk, conservative, CD-like, and supposedly presenting no risk of loss of principal while guaranteeing monthly income. Since then, Northstar Financial Services (Bermuda) has filed for bankruptcy protection and investors will likely lose a significant chunk if not all of their principal.
Call (800) 259-9010 and ask to speak with an experienced Northstar Financial Services (Bermuda) investment fraud lawyer at SSEK Law Firm today.Northstar Financial Services (Bermuda) Acquired by Greg Lindberg and Ended in Bankruptcy
Founded in the 1990s, Northstar Financial Services (Bermuda) has offered fixed- and variable-rate annuity and investment products. Its location in Bermuda was seen as a tax benefit.
In 2018, Global Bankers, which was owned by billionaire Greg Lindberg, acquired the firm. Lindberg would later be indicted in 2019 and convicted of bribery and wire fraud in 2020. He was sentenced to more than seven years in prison.
Lindberg is notorious for using his many annuity and insurance companies to send funds to other entities that he controlled. According to court documents, after acquiring Northstar Financial Services (Bermuda), he directed its assets to US-based special purpose vehicles that he operated.
Following Lindberg’s criminal indictment, investors in Northstar Financial products sought to have their investments liquidated. Unable to pay liquidation or redemption requests —monthly redemptions are now suspended—Northstar Financial Services (Bermuda) is estimated to have incurred a more than $260M deficit and by September 2020 could report just $8M in assets. The company filed for bankruptcy protection in 2020.Northstar Financial Investors May Be Owed Over $70M
Here is a list of a few of the products that were sold to investors:
- Global VIP Elite
- Global Advantage Plus Series
- Global Index Product
- Global Advantage Select
- Global Interest Accumulator
Already, a number of investor fraud claims have been filed seeking damage and alleging misrepresentations and omissions, breach of fiduciary duty, failure to supervise, negligence, or unsuitable investment recommendations.
American nationals were prohibited from investing in Northstar Financial (Bermuda) products. Investors abroad were marketed and sold these investments by US-based broker-dealers and their registered representatives.
Under Financial Industry Regulatory Authority (FINRA) rules, broker-dealers have a legal duty to conduct the proper due diligence before marketing any investment product or strategy to customers. Brokerage firms and their registered representatives are also required not to make any misrepresentations and omissions about their recommendations. This includes providing an accurate presentation of any risks involved and not leaving out any key, material information.
It is important that broker-dealers only promote investments to each customer that are suitable for them and in line with their financial goals, risk tolerance level, age, and certain other criteria. Unsuitable investment recommendations are one of the most common reasons that many investors end up losing money.Examples of Investor Claims Involving Northstar Financial Services
- Claimants of Hawaii-based broker Yoko Farias filed a $900K investor fraud case against Bankoh Investment Services alleging unsuitability.
- Investors who live outside the US are seeking damages from SunTrust Investment Services for over $500K in losses sustained from Northstar Financial Services investments.
SSEK Law Firm has been fighting for investors against the brokerage firms and their registered representatives whose negligence or misconduct played a part in causing their customers to suffer huge investment losses. We have law offices all over the United States.
Over the years, our broker fraud lawyers have collectively recovered many millions of dollars on behalf of our clients. To schedule your free, no-obligation consultation about your Northstar Financial Services (Bermuda) investment losses, contact (800) 259-9010 or contact us online.