Silver Law Group is speaking with investors who have suffered losses investing in Northstar Financial Services (Bermuda) after their SunTrust brokers recommended the investment. Since purchasing Northstar investments, investors have experienced suspended monthly income payments, illiquidity and inability to surrender policies, and have lost virtually the entirety of their investments due to Northstar Financial Services’ recent collapse.
Investors have alleged that their SunTrust financial advisors pitched Northstar Financial Services (Bermuda) as a safe, stable investment product comparable to a bank CD. Allegations include that SunTrust financial advisors promised guaranteed monthly returns as well as protection of principal. Unfortunately, this did not pan out to be true, as Northstar is on the verge of insolvency, and its owner, Greg Lindberg, has been convicted of fraud and bribery.
What Is Northstar Financial Services (Bermuda) Ltd.?
Northstar Financial Services offers investment and annuity products. The company is based in Bermuda and purports to offer various benefits, including tax shelters, not available for US-based investments. Northstar offers a wide range of fixed-rate and variable-rate investment, insurance, and/or annuity products, including, but not limited to:
- Global Interest Accumulator
- Global Advantage Plus Series
- Global Advantage Select
- Global VIP Elite
- Global Index Product
Northstar utilized a network of financial advisors in the United States and abroad to sell its products to investors, including SunTrust, which may have been recommending Northstar to Florida and Central and South American clientele.
What Happened To Suntrust Investors?
In mid-2018, Northstar was sold to a Bermuda holding company owned by now-convicted fraudster Greg Lindberg. As early as 2019, the US Department of Justice began investigating Lindberg, who was subsequently indicted and in March 2020, convicted. As details about Lindberg’s financial dealings came to light, questions about Northstar’s financials arose, leading to the company spiraling into insolvency proceedings in Bermuda court.
Northstar was one of hundreds of investment and insurance companies Lindberg purchased and incorporated into his conglomerate, Global Growth, formerly known as Eli Global. Bermuda court documents indicate that soon after Lindberg purchased Northstar Financial Services, he “reallocated the assets . . . many in special purpose vehicle structures, under the control of Mr. Lindberg, in the US.” Essentially, Lindberg moved Northstar’s holdings into other companies he owned, funneling funds to himself and attempting to increase his net worth.
As a result of Northstar’s decline, the company was unable to meet obligations to investors, who increasingly sought to liquidate their investments and surrender their policies. Bermuda court documents indicate that as of September 2020, more than $70 million was owed to investors, while Northstar only has approximately $8 million in cash on hand.
Did You Lose Money In Northstar Financial Services (Bermuda) Through A SunTrust broker?
Brokerage 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. 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.