Options for Clients Who Lost Money Investing in Northstar Financial Services Ltd. with Truist Investment Services, Inc.
Posted on Monday, March 22nd, 2021 at 6:34 pm
Erez Law is currently investigating Truist Investment Services, Inc., the broker-dealer unit of SunTrust Investment Services, Inc., brokers who recommended their clients invest in Northstar Financial Services Ltd. (NorthStar Healthcare REIT), the Bermuda-based annuity and life insurance company that serves the needs of high net worth clients around the globe. According to public records, brokers across the country recommended Northstar Financial Services Ltd. as a safe investment for conservative investors; however, Northstar Financial Services Ltd. has ceased suspended monthly income distributions.
According to public records, a former client of Truist Investment Services Inc. a retiree from Latin America, filed a FINRA arbitration claim against the brokerage firm and seeks $500,000 in damages. The risk-averse retiree alleges that, in 2018, her broker unsuitably recommended that she invest in NorthStar Healthcare REIT. Additional complaints include misrepresentations, failure to supervise, negligence, breach of contract, abuse and exploitation of an elderly person, gross negligence, unjust enrichment, and other breaches of duty. Unfortunately for the investor, her broker never informed her of the high-risk nature of her investment.
It is alleged that Truist Investment Services Inc. and SunTrust Investment Services, Inc. promoted NorthStar Healthcare REIT to their clients, touting the investment as similar to a CD with high returns of 3.75% for a 5-year-period. However, the brokers were allegedly motivated to recommend NorthStar Healthcare REIT with commissions, bonuses and other incentives that were greater than what the typical products that the brokerage firm offered.
In late December 2020, NorthStar Healthcare REIT lowered its estimated net asset value to $3.89 per share, as of June 30, 2020. The REIT’s previous NAV was $6.25 per share, as of June 30, 2019, according to the DIWire. NorthStar Healthcare REIT is now estimated to be more than $260 million in debt.
In September 2020, Northstar Financial Services Ltd. began a liquidation process and has lost most of its value. Unfortunately for many investors, redemptions were suspended and liquidation efforts are being denied.
In 2018, Northstar Financial Services 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.
Products offered by Northstar Financial Services Ltd. include:
- Global Advantage Plus Series
- Global Advantage Select
- Global Index Product
- Global Interest Accumulator
- Global VIP Elite
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 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.