Unfortunately, Northstar—which invested in insurance and investment products—has suspended monthly income payments, is unable to honor liquidation and surrender requests, and may never be in a financial position to return investors’ principal funds.
Northstar utlitzed brokerage firms throughout the US to market and sell its products. Among others, brokers at SunTrust Investment Services, Ocean Financial Services, LLC, and Bankoh Investment Services, Inc. were recommending Northstar Financial Services (Bermuda) investments.
Investors have alleged that brokers were pitching Northstar Financial Services (Bermuda) investments as conservative investments that were similar to bank CDs. Allegations include promises of guaranteed monthly income and no risk of loss of principal.
Northstar Financial Services (Bermuda) Ltd. — Background
Northstar Financial Services (Bermuda) is a 20-year-old company that offers annuity-type insurance products as well as other fixed- and variable-rate investments. The company is based in Bermuda, and advertises that the Bermuda laws and regulations that govern their investments offer certain tax shelters and other benefits that US-based investments cannot. Northstar products were sold to main street investors both in the US and abroad.
What Went Wrong?
Silver Law Group’s investigation into problems with Northstar Financial Services is ongoing, but public information and tips from investors indicate that problems arose after the company was purchased by a holding company ultimately owned by Greg Lindberg back in 2018.
Shortly after Lindberg purchased the company, it was announced that he was being investigated by the US Department of Justice. That investigation led to a March 2020 conviction for conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds.
Even before his conviction, Lindberg was well-known for having amassed a billion-dollar empire of insurance and annuity companies under his conglomerate, Global Growth, previously called Eli Global. Reporting from the Wall Street Journal, among others, has revealed that Lindberg used Global Growth to funnel money into companies owned or controlled by Lindberg to ultimately enrich himself.
It appears that Lindberg did the same with Northstar Financial Services. Bermuda court documents indicate that shortly after Lindberg acquired Northstar Financial Services, he “reallocated the asserts . . . mainly in special purpose vehicle structures, under the control of Mr. Lindberg, in the US.”
As Lindberg’s dealings were exposed, investors began to question the financials and success of Lindberg-owned Northstar Financial Services. Unfortunately, the company’s financials were not what they seemed, and has been unable to meet these requests. Bermuda court documents from September 2020 indicate that the company could have a deficit of $265 million.
Have You Suffered Losses Due To A Northstar Financial Services (Bermuda) Investment?
Northstar Financial Services (Bermuda) offered a wide variety of investment products, including:
- Global Interest Accumulator
- Global Advantage Plus Series
- Global Advantage Select
- Global VIP Elite
- Global Index Product
Investments were sold by a variety of financial advisor and brokerage firms. These firms are obligated to investigate and understand the investments they recommend. If your financial advisor recommended Northstar Financial Services (Bermuda), the firm may be liable for failure to properly investigate the history, background, holdings, financials, and red flags associated with the company, resulting in the recommendation of an investment that was risky, speculative, and ultimately collapsed.
Our team includes several Spanish speakers and can talk with investors in English or Spanish. As many investors reside in Latin America or elsewhere, we are able to represent investors wherever they reside. If you or someone you know experienced losses investing in a Northstar Financial Services (Bermuda) product, contact Silver Law Group for a confidential consultation toll free at (800) 975-4345 or email ssilver@silverlaw.