Northstar Financial Services. Fraud and/or Investment Loss Customer Complaint Disclosures

Investor Recovery Options for Losses in Northstar Financial Services (Bermuda), Ltd.

Lawyer for Northstar Financial Services (Bermuda) Investors

Many investors have lost money due to their investments in Northstar Financial Services. Investors have options to recover those losses despite Northstar recently becoming insolvent. The Wolper Law Firm, P.A. exclusively works on cases like the Northstar case and is currently investigating claims on behalf of investors. We may be able help you recover losses if you were a Northstar investor. Contact us for a free, confidential consultation.

Recovering Losses from Northstar Financial Services Investment

Since Northstar has filed for bankruptcy and is being liquidated to pay its creditors, recovery of investor losses is subject to the liquidation trust. It is estimated that investors will receive no more than 13 cents on the dollar leaving them with significant losses. Recovery options directly with Northstar are dependent on the type of account the investor had; segregated vs. non-segregated. It is estimated there are over 1,800 claims worth over $400M.

While Northstar is now insolvent, losses can be recovered by pursuing the American brokers who sold these investments. Many of these brokers failed to inform their clients that Northstar was an offshore insurance product, lacked insurance protections provided by the United States, and was a high-risk investment. Registered Investment Advisors have an obligation to act in the best interests of their clients and failure to do so can be an act of investment fraud. They are required to conduct appropriate due diligence on the investments they are recommending and accurately inform their clients about those investments. Both misrepresentations and omissions are punishable. If you lost money from a Northstar investment and were not appropriately informed about that investment, call our office to discuss your options. (855-453-8609)

Brokerage firms known to have recommended Northstar investments: (This list is not all-inclusive. If your broker is not listed, you may still be able to recover your losses from them. Contact our firm for a free consultation to discuss your situation.)

• 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
• J.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

Common Northstar Financial offerings:
• Global Advantage (Fixed)
• Global Advantage III, V (Fixed)
• Global Advantage Plus (Fixed)
• Global Advantage Select (Fixed)
• Global Interest Accumulator (Fixed)
• Global Index Protect (Fixed)
• Global Investment Plan (Fixed & Variable)
• Global Variable Annuity (Fixed & Variable)
• Global VIP (Fixed & Variable)
• Global VIP Elite (Variable)
• Met Group Variable Deferred Annuity (Fixed & Variable)
• Met Global Asset Portfolio (Fixed & Variable)
• Met Universal Life (Fixed)
• Met Variable Universal Life (Fixed & Variable)

If you have questions about your investments with Northstar, our office will be happy to discuss them with you. Please contact us at 855-453-8609.

What Happened to Northstar Financial Services & Their Investors

Northstar Financial Services (Bermuda) was founded in 1990 and originally named Nationwide Financial Services (Bermuda). The company sold insurance and annuity products that were tax-friendly because of its location in Bermuda. These investments become popular with conservative investors looking to lower their tax burden.

The company was acquired by Global Bankers in 2018 by the billionaire Greg Lindberg. He would later be convicted of wire fraud and bribery in 2020. He is now serving a 7-year prison sentence and was ordered to give up control of his companies. His charges stemmed from bribing an elected official in North Carolina to ensure favorable actions toward the companies he owned.

Lindberg’s Global Growth (formerly Eli Global LLC) operated subsidiaries in the insurance, healthcare, finance, commercial, education, research, and media sectors. As early as 2019, liquidity concerns were raised about Global Growth’s affiliated insurance companies, including allegations that these companies’ assets were being improperly diverted to other entities under Lindberg’s control.

As news began to be released about Greg Lindberg, nervous investors began to liquidate their investments with Northstar. The company was not able to accommodate their responsibilities to investors and creditors which forced them into bankruptcy.

A ‘Winding Up Order’ was issued by the Supreme Court of Bermuda in March 2021. Since Northstar was unable to present a feasible restructuring plan, the company is forced into liquidation. Rachelle Frisby and John Johnston of Deloitte Ltd. Were appointed as Joint Provisional Liquidators.

Northstar has experienced multiple delays applying for a Directions Hearing and subsequent Substantive Hearing. There have been several updates posted to the Northstar website with the most recent update on June 2, 2022. Northstar has an investor FAQ available which is scheduled to be updated by the end of June 2022.

What Did Brokers Do to Be Liable for Northstar Investment Losses?

Brokers violated their obligation to properly disclose information to investors and make reasonable recommendations to them. This broker misconduct means they may be liable for your losses.

Broker-dealer firms are obligated under Financial Industry Regulatory Authority (FINRA) regulations to carry out due diligence on any investment products they offer their clients. Financial advisors also have a fiduciary duty to their clients; as part of this, only suitable recommendations may be made. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The investment products developed by Northstar Financial Solutions (Bermuda) Ltd carried a greater risk than suggested, making them inappropriate for broker-dealer firms to offer to some investors; in fact, it’s alleged that the company website included a disclaimer that some investments may not meet U.S. securities regulations. In addition, it could be argued that Northstar Financial Solutions (Bermuda) Ltd.’s relationship with Lindberg should have raised red flags through broker-dealers’ due diligence practices. This could leave broker-dealers open to potential liability when it comes to covering investors’ losses with Northstar Financial Solutions (Bermuda) Ltd. investment products through FINRA arbitration.

Northstar Bermuda Lawsuits

There have been many lawsuits filed against Northstar Bermuda. Most of these are going to be related to broker misconduct and fraud. Here is a sampling of those lawsuits that have been made public. If you want to check your specific broker for any filings, you can use the FINRA Broker Check Tool.

• $5M claim against Raymond James & Associates
• $500 claim against Bancwest Investment Services
• 6-Figure claim against Bankoh
• Unspecified claim against Cetera
• $626k claim against Truist Investment Services

Do I Need a Lawyer to Get My Money Back from Northstar?

Yes, a lawyer can help ensure you get the maximum amount possible recovered of your loss from Northstar investments. While some of your loss may be covered under the official liquidation proceedings, most of it will not. Our lawyers have experience that can help analyze your unique situation and determine alternate options. This may require complex litigation or FINRA arbitration which is the core focus of our law firm.

Our FINRA lawyers operate on a contingency fee basis, meaning that you do not pay us unless we win your case.

The Role of FINRA Arbitration with Northstar Investments

It is likely that you agreed to arbitration when setting up your investment. Arbitration is an alternative to traditional litigation where a private entity makes a binding decision regarding your investment dispute. The Wolper Law Firm, P.A. has extensive experience with the FINRA Arbitration process and can help you navigate its complexities.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies, and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.