Securities Arbitration Lawyers BlogDid You Lose Money In Northstar Financial Services (Bermuda)?
Silver Law Group represents Northstar Financial Services (Bermuda) investors on a contingency fee basis in claims to recover their investment losses. Brokers allegedly sold Northstar Bermuda to investors as a low risk alternative to CDs that protected their principal and guaranteed income. But the company is now in liquidation, leaving investors unable to access their funds.
If you have investments in Northstar Financial Services (Bermuda), Silver Law Group would like to hear from you. Contact us today for a consultation at 800-975-4345.
Brokers-Dealers That Recommended Northstar
Northstar Financial Services (Bermuda) was sold by many broker-dealers, including:
- 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
Greg Lindberg
Northstar Financial Services (Bermuda) was one of several insurance companies bought by financier Greg Lindberg in 2018 through his Bermuda holding companies. One year later, Lindberg was federal wire fraud and bribery charges by the US Department of Justice.
Because of Lindberg’s “special arrangement” with the former North Carolina Commissioner of Insurance, Wayne Goodwin, he was able to “invest” 40% of the insurance company’s coffers into other companies. Those companies were also owned by Lindberg, and the “loans” totaling $1.2 billion were later forgiven. Lindberg’s “empire” then began unraveling when it was discovered that he and his associates were skimming money from these companies by this complicated “loan” scheme.
This meant that the insurance companies no longer had the money to repay investors. Lindberg then allegedly offered money to the campaigning and incoming insurance commissioner, who then worked with the FBI to gather evidence.
Following this indictment, the investors attempted to liquidate their investments, only to discover that the company could not cover the liquidation requests. Many of these investors were elderly and retired and suffered devastating losses following Lindberg’s charges and the company’s bankruptcy. Lindberg now lives in Tampa, Florida awaiting trials.
What Happens Next?
Unfortunately, Northstar Bermuda investors may lose most of their principal.
Investors may be able to recover their losses from the brokers that sold Northstar Bermuda through FINRA arbitration. FINRA is the Financial Industry Regulation Authority, responsible for overseeing the industry. Arbitration is a form of alternative dispute resolution that keeps a claim out of the courts and lets defrauded investors work with a neutral third party to resolve claims.
Brokers and broker-dealers have a duty of care to ensure that all recommendations made to each client are suitable for their investment needs and goals. Under FINRA’s rules, the brokers and broker-dealers are responsible for prior due diligence. Additionally, they share the responsibility of recommending something they knew or should have known wasn’t suitable for a particular client.
Did You Experience Losses From Northstar Financial Services (Bermuda) Investments?
If you invested in Northstar investment products through SunTrust, Ocean Financial Services, or another U.S. brokerage, please contact Silver Law Group today for a confidential consultation toll free at (800) 975-4345 or by email ssilver@silverlaw.com.
Scott Silver, managing partner of Silver Law Group, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice.
Many Northstar investors reside in Latin America or elsewhere, and we can represent investors wherever they reside. Our team can speak with investors in English or Spanish.