Lost Money on Northstar Financial Services (Bermuda) Investments? We Can Help Get Your Money Back
Kurta Law Firm continues to investigate claims related to Northstar Financial Services (Bermuda) products. Investors may have purchased Northstar (Bermuda) annuities or invested in securities following unsuitable recommendations from their brokers. Unfortunately, many investors suffered massive losses after Northstar (Bermuda) filed for bankruptcy. The Supreme Court of Bermuda ordered the financial institution to liquidate in March 2021. It is unlikely Northstar (Bermuda) will be able to return any funds to their investors, but there is still hope for investors who lost money.
Many brokers represented that Northstar (Bermuda) financial products had very low risk. The website advertised that the company provided “financial security and privacy protections.” Investors may have been told that investing their funds in a Bermuda-based account would come with tax benefits.
Are Brokers Allowed to Recommend Unsuitable Products?
The Financial Industry Regulatory Authority (FINRA) requires that brokers only recommend investments that fit their clients’ investment goals. This is called the “suitability” rule, or FINRA Rule 2111. Brokers who recommended these investments should have conducted their due diligence and made sure their investors understood the risks.
If your broker recommended an unsuitable Northstar (Bermuda) investment, engaged in negligence, misrepresented the investment, or omitted material information, you may have grounds to recover your losses. To recover losses, most investors are required to go through FINRA arbitration instead of suing in civil court.
Brokers from Major Institutions Recommended Northstar Financial Services (Bermuda) Products
Investors allege that brokers from major financial institutions recommended these investments, including brokers from Truist Investment Services. (Investors may have worked with Truist through SunTrust.) Northstar (Bermuda) investments allegedly came with high commissions for brokers.
Other major brokerages where brokers may have recommended Northstar Financial Services (Bermuda) securities include:
- Raymond James Financial Services
- Cetera Investment Services
- JP Morgan Securities
- Bankoh Investment Services
- Ocean Financial Services
Leadership Problems at Northstar Financial Services (Bermuda)
Gregory Lindberg, the billionaire owner of Northstar Financial Services (Bermuda) was convicted in 2020 of bribery. He allegedly attempted to bribe a North Carolina insurance commissioner to gain positive treatment for one of his companies, Global Bankers Insurance Group.
How Much Did Investors Lose?
Claims against Northstar Financial Services (Bermuda) are ongoing and it’s not yet clear just how much investors lost.
One investor alleged a loss of $500,000. The investor, a retiree in Latin America, has alleged that she advised her broker she did not want to take on risk. She further alleges that SunTrust failed to supervise the broker who recommended Northstar Financial Services (Bermuda). Brokerage firms have a responsibility to supervise their brokers and ensure that they only recommend suitable investments.
What Should I Do Next?
The experienced securities attorneys of Kurta Law can assess your case for free. Founder Jonathan Kurta has both defended and prosecuted brokerage firms and can use his experience to help you secure a FINRA arbitration award or settlement. Securities lawyers at Kurta Law can work with investors based in the U.S. as well as overseas. Call (212) 658-1502 or email firstname.lastname@example.org and start the process to recover your losses today.