The securities law attorneys at Silver Law Group are preparing to act against those brokers and broker-dealers who were involved. These individuals sold investments in the Bermuda-based Northstar Financial Services Bermuda to foreign investors who wanted a US based investment to protect their assets. Investors in Latin America, Japan, China, and Taiwan who invested in Northstar discovered that the solid vehicle they bought into was anything but. Northstar was not available to US or Bermuda-based investors.
Brokers who represented the Northstar investment as safe, secure, and that would guarantee their principal. The company was ordered into bankruptcy in Bermuda in 2020, and is now in bankruptcy litigation. With just $8 million in assets, the company has a deficit and debts totaling $260 million.
Sale To Global Banker
Northstar was purchased in 2018 by Global Banker, a company owned by North Carolina billionaire businessman named Greg Lindberg. In the short time he owned Northstar, he created loans to funnel Northstar and other insurance company funds into his other legal entities. In March of 2020, Lindberg was convicted by the US Department of Justice on charges of wire fraud and bribery. Although he was sentenced to seven years in prison, his conviction was later overturned. However, he will be tried on separate charges later this year involving bribery to the NC Commissioner of Insurance.
When the news broke of his original conviction, many investors attempted to liquidate their investments. Northstar was then unable to honor those requests, suspending monthly redemptions in September of 2020, leaving investors with little or nothing.
The Wall Street Journal recently reported on the thousands of retired investors who are unable to withdraw more than $2 billion invested in firms controlled by Greg Lindberg.
FINRA Arbitration Of Northstar Claims
Investors may never be able to recover their investment from the company itself. But like US-based investors who bought from American brokers and broker-dealers, they do have another option.
Filing a lawsuit—or joining a class action lawsuit—is not an ideal scenario. The company’s creditors get paid first, and individual investors are usually last to receive anything. That’s not a good outcome for someone who invested the minimum of $50,000—or more, as many investors did.
But the company isn’t the only one responsible for a lost investment. An investor would never have considered investing in Northstar if their broker hadn’t recommended it to them. That’s where the Financial Industry Regulating Authority, or FINRA, can help.
Brokers, broker-dealers, and other financial advisors failed to notify investors prior to investing that Northstar, was, in fact, not the “safe haven” for their funds that they were led to believe. Furthermore, those same securities sellers failed to disclose that Northstar was owned by Lindberg, or the risks associated with the investment.
Companies That Sold Northstar
Northstar Financial Services Bermuda was sold by these US-based brokers:
- Ankoh Investment Services, Inc.
- Bancwest Investment Services
- Bankoh Investment Services
- Bank of Hawaii
- Cetera Investment Services
- CommunityAmerica Financial Solutions
- Global Advantage Plus Series
- Global Advantage Select
- Global Index Product
- Global Interest Accumulator
- Global VIP Elite
- Hancock Whitney Investment Services
- P. Morgan Chase Co.
- 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
Those financial products included:
- Global Interest Accumulator
- Global Advantage Plus Series
- Global Advantage Select
- Global VIP Elite
- Global Index Product
Northstar investors can file a FINRA arbitration against the broker and broker-dealer who misrepresented the company and sold them the investment. The brokerage firm can be held responsible for the actions of their brokers, who may have recommended these investments for the high commissions and other incentives.
Silver Law Group understands the FINRA arbitration process and is ready to help those who have lost money investing in Northstar Financial Services Bermuda.
Did You Invest With Northstar Financial Services Bermuda?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.