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Northstar Financial Services (Bermuda)

NorthStar Healthcare REIT

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. 

​​Northstar Financial Services was a Segregated Accounts Company that was regulated by the Bermuda Monetary Authority. Northstar Financial Services 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, for some investors, some 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 involved by inflating the amount needed to get out of the contract. Brokers also recommended Northstar Financial Services (Bermuda) Ltd. as a safe, low-risk product that was 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 Northstar Financial Services (Bermuda) Ltd. 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.

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, Northstar Financial Services Ltd. began a liquidation process and has lost most of its value. It is estimated that Northstar Financial Services (Bermuda) Ltd. is $260 million in debt. 

According to public records, brokers recommended Northstar Financial Services (Bermuda) Ltd. as a safe investment for conservative investors; however, Northstar Financial Services (Bermuda) Ltd. has suspended monthly income distributions as of 2020. It is also reported that it is not likely that Northstar Financial Services (Bermuda) Ltd. 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. Northstar Financial Services (Bermuda) Ltd. will be liquidated and proceeds will go to creditors. The Bermuda Supreme Court will need to approve payments before they are issued to investors. 

At Erez Law, many of our clients come to us because of our specialization in recovering investment losses. We use considerable legal resources to help investors who trusted their 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.

Erez Law has been retained by investors 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 may be able to recoup your losses. Our team of financial securities attorneys has experience with FINRA arbitration 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.

Erez Law Investigates Brokerage Firms and Investment Advisors Who Recommended Northstar Financial Services (Bermuda) Ltd.

According to public records, the following brokerage firms recommended their clients invest in Northstar Financial Services (Bermuda) Ltd.:

  • Ankoh Investment Services, Inc. 
  • 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.
  • Morgan Keegan Bank
  • Ocean Financial Services
  • Raymond James & Associates
  • Raymond James Financial Services 
  • SunTrust Investment Services
  • Truist Investment Services
  • United Nations Federal Credit Union (UNFCU) 
  • Unionbanc Investment Services

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 is able to represent Latin Americans in their claims for recovery due to investment losses. It is alleged that Raymond James & Associates sold Northstar Financial Services (Bermuda) Ltd. to Latin American investors who wanted highly regulated and stable investments offered by a United States-based brokerage firm. Regrettably, for many investors, they invested in a high-risk offshore investment that is now in liquidation.

Northstar Financial Services (Bermuda) Ltd. was also sold to investors in China, Taiwan, and Japan by United States-based brokerage firms such as Cetera Investment Services, Raymond James & Associates, Bancwest Investment Services, and Truist 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 that 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

If you invested in Northstar Financial Services (Bermuda) Ltd. on the advice of your broker or investment advisor and you suffered investment losses, you may be able to recover your losses. 

Recovering 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 facts surrounding the security, 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 key 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, pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time 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 investments they recommend including the recommendation of conservation easements. 

Contact Us for a Free Consultation

If you have experienced investment losses as a result of investing in Northstar Financial Services (Bermuda) Ltd., we are here to help. We are not afraid of taking on the largest firms, and we 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.

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.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by its customers who lost money investing in Northstar Financial Services (Bermuda) Ltd.

Erez Law represents investors in the United States for claims against brokers and brokerage firms 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, banks and insurance companies on a contingency fee basis.