How to Recover Investment Losses in Northstar Financial Services (Bermuda) LTD
The White Law Group continues to investigate potential securities claims involving broker dealers and sales agents who may have improperly recommended Northstar Financial Services (Bermuda) LTD to investors.
Northstar Financial Services (Bermuda) Ltd., an insurance company based in Bermuda, reportedly offered insurance products as well as other fixed and variable-rate annuity type investments, such as the following:
Global Index Product
Global Interest Accumulator
Global Advantage Plus Series
Global VIP Elite
Global Advantage Select
These products have reportedly been sold through U.S. registered investment advisors and broker-dealers to overseas investors. In recent claims it is alleged that these investments were marketed as low-risk, for conservative investors, and came with guarantees of monthly income and certain tax benefits.
Further, the company allegedly claimed that these insurance products had a “segregated account” structure that would protect investors by maintaining investors’ funds separately from Northstar’s creditors.
In 2020, the company’s owner was reportedly convicted of wire fraud and bribery and handed a 7-year prison sentence.
Unfortunately for investors, by September 2020 the company was estimated to have incurred a deficit of $260 million, leaving only $8 million in assets on its Balance Sheet. The company suspended monthly income payments, liquidation and surrender requests and then filed for Chapter 15 bankruptcy proceedings.
There have been numerous lawsuits filed against various broker dealers after the company’s apparent collapse. Allegations state that financial advisors misrepresented Northstar as a safe, low risk product similar to a bank CD, promising guaranteed monthly returns as well as protection of principal.
The following are some of the financial institutions that purportedly sold Northstar products to investors:
J. P. Morgan Securities
Ocean Financial Services, LLC
Trust Investment Services, Inc.
Bankoh Investment Services, Inc.
Hancock Whitney Investment Services
BancWest Financial Services
Potential Lawsuits to Recover Financial Losses
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Northstar Financial Services (Bermuda) LTD offerings to investors.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses through FINRA arbitration.
If you have suffered losses investing in Northstar Financial Services (Bermuda) LTD, please contact The White Law Group at 888-637-5510 for a free consultation with a securities attorney.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information on the firm, visit www.WhiteSecuritiesLaw.com.
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