Did your broker or investment advisor recommend you invest in Northstar Financial Services (Bermuda) Ltd.? Erez Law is currently investigating brokers across the United States, Latin America, and Asia who recommended their clients invest in Northstar Financial Services (Bermuda) Ltd., the Bermuda-based annuity and life insurance company that serves the needs of high net worth clients around the globe.
Abagados Financieros Northstar Financial Servies (Bermuda)
Northstar Financial Services was a Segregated Accounts Company regulated by the Bermuda Monetary Authority. The company promoted its fixed and variable annuities products by describing them as the ability to offer segregated account protection, liquidity terms, commitment periods of varying lengths, and the benefits of a Bermuda trust structure.
Regrettably, some investors, brokers and brokerage firms, and investment advisors across the United States recommend their clients invest in Northstar Financial Services (Bermuda) Ltd., causing catastrophic losses. Additionally, it has been reported that brokers misrepresented the exit fees by inflating the amount needed to get out of the contract. Brokers also recommended their financial services as a safe, low-risk product similar to a Certificate of Deposit (CD) and offered guaranteed monthly income with principal protection. However, that was not the case, and many investors across the United States and throughout Latin America suffered significant investment losses.
Northstar Financial Services (Bermuda) Ltd. has pursued Chapter 15 bankruptcy and liquidation proceedings and is no longer solvent. Its owner, Greg Lindberg, is in prison and likely funneled the off-shore entity’s money into other companies he operated. In 2019, Lindberg was indicted on federal wire fraud and bribery charges, and he is currently serving in prison after his conviction in 2020.
If you invested in Northstar Financial Services (Bermuda) Ltd. and suffered investment losses, you may be able to recover your losses against the brokerage firm that sold you the investment in a FINRA arbitration.
The Problem with Northstar Financial Services (Bermuda) Ltd. For Many Investors
Regrettably, for many investors, brokers recommended many unsophisticated investors invest in Northstar Financial Services (Bermuda) Ltd. without informing them that the investment is an offshore insurance product that was high risk and lacked United States-based insurance protections. The SEC holds Northstar Financial Services to a high standard which was neglected during the following:
- In 2018, Northstar Financial Services (Bermuda) Ltd. was acquired by Global Bankers, a North Carolina-based conglomerate owned by Greg Lindberg.
- In March 2020, the Department of Justice convicted Greg Lindberg, the founder, and chairman of Northstar Financial Services Ltd., of public corruption and bribery charges, for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
- In September 2020, the company began a liquidation process and lost most of its value; estimated to have $260 million in debt.
According to public records, brokers recommended Northstar Financial Services (Bermuda) Ltd. as a safe investment for conservative investors; however, the company had suspended monthly income distributions as of 2020. It is also reported that it is not likely that they will have enough assets to pay back the full amount owed to fixed-rate contract holders.
- In March 2021, the Supreme Court of Bermuda issued a winding-up order against Northstar Financial Services (Bermuda) Ltd.
- In April 2021, The Bermuda Supreme Court turned down a request by Northstar Financial Services (Bermuda) Ltd., which asked for additional time to restructure; resulting in the liquidation of the company, and proceeds being distributed to creditors. The Bermuda Supreme Court will need to approve payments before they are issued to investors.
Call if you believe your broker made fraudulent actions; our experienced lawyers know how to pinpoint signs of misrepresentation and fraud to start a Northstar Financial Services (Bermuda) claim.
How Our Experienced Northstar Financial Lawyers Can Help You
Many clients come to us at Erez Law because we specialize in recovering investment losses. We use considerable legal resources to help investors who trusted reckless and unethical brokers who recommended investments in Northstar Financial Services (Bermuda) Ltd. We have filed many FINRA arbitration cases against large brokerage firms, holding these firms accountable for dishonest investment advisory practices, unsuitable recommendations, misrepresentation, and over-concentration in investments and strategies.
Investors have retained Erez Law to recover losses caused by investment advisors that recommended Northstar Financial Services (Bermuda) Ltd. resulting in significant investment losses.
If you invested in Northstar Financial Services (Bermuda) Ltd. without understanding the risks associated with your investment, you might be able to recoup your losses. Our financial securities attorneys team has FINRA arbitration experience, and we know how to hold brokerage firms and advisors liable for their indiscretions. Contact our firm by calling (888) 840-1571 to speak with one of our attorneys about filing a Northstar Financial Services (Bermuda) Ltd. investment losses lawsuit.
Were You Advised To Invest in Northstar Financial Services – Bermuda?
Brokerage Firms and Investment Advisors Recommending Northstar Financial Services (Bermuda) Ltd.
According to public records, the following brokerage firms recommended their clients invest in Northstar Financial Services (Bermuda) Ltd.:
- Bancwest Investment Services
- Bankoh Investment Services
- Bank of Hawaii
- Cetera Investment Services
- CommunityAmerica Financial Solutions
- East West Bank
- Hancock Whitney Investment Services
- J.P. Morgan Chase Co.
Additionally, It is alleged that Raymond James Financial Services brokers marketed Northstar Financial Services (Bermuda) Ltd. investments through the United Nations Federal Credit Union (UNFCU), an American credit union.
Erez Law has been contacted by Latin American investors who sustained losses in Northstar Financial Services (Bermuda) Ltd. and can represent Latin Americans in their claims for recovery due to investment losses. It is alleged that Raymond James & Associates and brokers at brokerage firms across the country sold Northstar Financial Services (Bermuda) Ltd. to Latin American investors, including those from Argentina and Venezuela, who wanted highly regulated and stable investments by a United States-based brokerage firm. Regrettably, many investors invested in a high-risk offshore investment that is now liquidated.
Northstar Financial Services (Bermuda) Ltd. was also sold to Asian investors in China, Taiwan, and Japan by United States-based brokerage firms such as Cetera Investment Services, Raymond James & Associates, Bancwest Investment Services, and SunTrust Investment Services as a guaranteed investment. It is alleged that brokers at Cetera Investment Services sold Northstar Financial Services (Bermuda) Ltd. to Chinese and Taiwanese investors who were clients of East West Bank and were not told they were at risk of losing their principal.
Erez Law is also currently investigating the following Northstar Financial Services (Bermuda) Ltd. investments:
- Global Advantage Plus Series
- Global Advantage Select
- Global Index Product
- Global Index Product
- Global Interest Accumulator
- Global VIP Elite
Suppose you invested in Northstar Financial Services (Bermuda) Ltd. on the advice of your broker or investment advisor, and you suffered investment losses. In that case, you may be able to recover your losses.
Erez Law Filed Cases Against SunTrust Investment Services, Inc. For Recommending Northstar Financial Services (Bermuda)
In 2021, Erez Law filed a FINRA complaint against SunTrust Investment Services, Inc. Their customer alleges that Manuel Fernandez (CRD #3079976), a registered representative in Coral Gables, Florida, recommended the client invest in offshore variable products, including Northstar Global Advantage Select and Northstar Financial Services (Bermuda) Ltd. Global VIP.
According to the claim, Manuel Fernandez represented that the Northstar investment was secure and superior and will grow over time. It is alleged that Fernandez generated a large commission by recommending Northstar and placing his financial interests above his client’s. SunTrust Investment Services, Inc. and Fernandez failed to adequately disclose to the client that there was a risk that his principal would not be returned to him.
According to the claim, Manuel Fernandez recommended that the client dangerously concentrate all his securities investments in Northstar.
Regrettably, this is not an isolated incident. SunTrust Investment Services and Manuel Fernandez have been actively selling Northstar investments to investors who have now learned that they may have lost most or all of their investments.
In 2022, Erez Law filed another FINRA complaint against SunTrust Investment Services, Inc. and Manuel Fernandez. The complaint alleges that the client, a resident of Venezuela, was a long-time customer of both parties and entrusted his broker to safeguard and preserve his capital in a highly regulated and stable banking and investment system. Manuel Fernandez recommended that the client invests in Northstar Financial Services (Bermuda) Ltd. (Northstar) Global Advantage V, an offshore product with a five-year term. It is alleged that Manuel Fernandez represented that the Northstar investment was a secure investment that would preserve the client’s capital, which regrettably was not the case.
The Northstar Global Advantage V investment that Manuel Fernandez solicited paid a meager guaranteed interest of 2.4%; however, it was subject to a risk that his principal would not be returned to him.
Erez Law Filed Case Against Raymond James Financial Services, Inc. For Recommending Northstar Financial Services (Bermuda)
Erez Law recently filed a FINRA complaint against Raymond James Financial Services, Inc. Their customer alleges that Alberto Valdes, who was a registered representative of Raymond James Financial Services, Inc. in Miami, Florida, from 2016 to 2018., recommended the client invest in the offshore variable product, Northstar Global Advantage Select. It is alleged that despite his known risk aversion, interest in a low return to protect his capital, and his lack of sophistication, Valdes recommended the high-risk and unsuitable Northstar Global Advantage Select, which subjected the client to concentration risk that further increased the risks to which the client was unknowingly exposed.
Recovering Northstar Financial Services Losses Through FINRA Arbitrations
Investors in the United States have filed FINRA arbitration claims against brokers and investment advisors across the country for investments made in Northstar Financial Services (Bermuda) Ltd. on the advice of their brokers or advisors. Many of these investors were not adequately warned about the high-risk nature of the investments and have suffered damages as a result. Investors may have a claim against the brokerage firm or advisory firm based on misrepresentation, unsuitability, breach of fiduciary duty, and state and federal securities laws.
A broker/investment advisor must have reasonable grounds for each recommendation made to investors, considering such factors as the customer’s other securities holdings, financial situation, and risk tolerance. In addition, before a financial advisor recommends security, the financial advisor must conduct due diligence, investigating the security facts, to confirm that it is suitable for the customer. The suitability of an investment for a particular individual is at the center of the investment process and one of the essential duties owed by a broker to the customer. A firm may be held liable for its broker/advisor’s failure to recommend suitable investments to its customers.
In addition, under FINRA Rules, member firms are responsible for supervising a broker’s activities when the broker is registered with the firm. Therefore, the brokerage firm may be liable for investment or other losses suffered by brokers who worked for the firm.
Investment advisors or RIAs are held to the fiduciary duty standard and must also perform adequate due diligence on recommended investments, including conservation easements.
Contact Our Firm To Start Your Lawsuit With a Northstar Financial Attorney
If you have experienced investment losses due to investing in Northstar Financial Services (Bermuda) Ltd., we are here to help. We are not afraid of taking on the most prominent firms and can and will combat some of the largest brokerage firms in the United States. Count on our experience to successfully take you through the FINRA arbitration process.
According to FINRA Rules, member firms are responsible for supervising a broker’s activities when registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by their customers who lost money investing in Northstar Financial Services (Bermuda) Ltd.
Erez Law represents investors in the United States for claims against brokers, brokerage firms, investment advisors, and RIAs for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations, and institutions in claims against brokerage firms, investment advisors, RIAs, banks, and insurance companies on a contingency fee basis.