With Northstar Financial Services (Bermuda) Ltd. in bankruptcy liquidation, and its former owner Greg Lindberg in prison, everyone with a Northstar investment account must be asking some version of these questions: Who is responsible for this? Is there anyone who can be made to pay back some of my losses?
The short answer is: Yes, there is someone who you can probably hold accountable—your broker or investment agent.
Of course, Northstar (and Lindberg) has the primary responsibility for your losses, so you can—and should—file a creditor claim with the bankruptcy court. But hundreds, if not thousands, of other creditors are vying for compensation. And the amount Northstar owes everyone vastly outnumbers its assets. (Last year, Northstar owed $260 million but only had $8 million in assets.) Therefore, if you recover anything from the bankruptcy proceeding, you’ll probably be getting just pennies on the dollar.
However, you may be entitled to compensation from the entity and or person who sold you the Northstar investment products. Licensed investment agents owe a fiduciary duty to their clients. They must keep a watchful eye on the markets overall, as well as be vigilant in regards to any changes in status about their clients’ investments. Stockbrokers have a lower standard for their investment recommendations, but they at least need to have had a reasonable basis for their investment advice.
Therefore, if the broker or agent failed to sufficiently investigate Northstar before recommending that you purchase its products, you may have a claim against them. Further, if they falsely represented that investments at Northstar were safe, akin to bank CDs, or made other misrepresentations, then you may have other claims against them you can make.
Recover Your Northstar (Bermuda) Losses
As with any case such as these, time is of the essence if you hope to recover any of your losses. Silver Law Group already represents clients who have filed claims on behalf of investors against broker-dealers who improperly marketed and sold Northstar (Bermuda), and the firm is continuing to investigate more claims. If you or someone you know invested in any Northstar (Bermuda) offerings, please contact the Silver Law Group toll-free at (800) 975-4345 or e-mail us at email@example.com for a confidential consultation.