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Northstar Financial Services (Bermuda) – What happened To My investment?
Investors who purchased fixed and variable rate investments from Northstar Financial Services (Bermuda) are asking what went wrong after Joint Provisional Liquidators announced that the company lacks the cash on hand to pay back investors seeking to redeem their investment.
The investments were marketed and sold as safe, secure products similar to money markets or certificates of deposit, but were in fact risky, speculative, offshore investments that did not offer investors the safety and security promised.
Silver Law Group has filed claims on behalf of several Northstar (Bermuda) investors against the broker-dealers that recommended the products. Silver Law Group is continuing to monitor and investigate the company.
Can Northstar (Bermuda) Losses Be Recovered?Northstar (Bermuda) was founded in the 1990s under the name Nationwide Financial Services (Bermuda). The company sold a variety of fixed and variable rate insurance and annuity-type products to investors living outside of the United States, advertising certain tax benefits as well as a “segregated account” structure that purportedly maintained investors’ funds separate from Northstar (Bermuda) creditors.
In July 2018, Northstar was acquired by a company owned by insurance entrepreneur Greg Lindberg. At the time, Lindberg was in the process of acquiring a massive portfolio of insurance companies. Documents obtained from the Bermuda liquidation proceedings indicate that “within six months of the change of control of the company to Mr. Lindberg, there was a reallocation of the assets of the Companies, with significant assets belonging to the Companies being invested in illiquid equity and debt instruments, mainly in special purpose vehicle structures, under the control of Mr. Lindberg, in the US.”
It was ultimately uncovered that Lindberg used his insurance holdings, including Northstar (Bermuda) to engage in a variety of self-dealing transactions, as well as purchasing luxurious real estate, a private jet, and a yacht. Lindberg is now in federal prison following a wire fraud conviction.
Did You Lose Money Investing In Northstar (Bermuda)?Silver Law Group represents investors who suffered financial losses due to investments in products offered by Northstar (Bermuda). Northstar’s offerings include:
- Global Interest Accumulator
- Global Advantage Plus Series
- Global Advantage Select
- Global VIP Elite
- Global Index Product
Northstar (Bermuda) reached many of these customers through a network of United States-based brokerage firms, including Ocean Financial Services, LLC (a/k/a Ocean Bank), Truist Investment Services, Inc. (formerly Suntrust), Bankoh Investment Services, Inc., Hancock Whitney Investment Services, and Cetera Financial.
Brokerage firms owe a duty to their customers to understand and investigate the products they recommend to investors, and to ensure that the investments they recommend are appropriate, or “suitable”, for each individual investor, based on their age, financial situation, and other factors. If your broker failed to uphold these standards, they may be liable to you for your losses.
Silver Law Group specializes in fighting for investors who lost money due to recommendations to invest in unsuitable investments and/or investments the firm failed to conduct adequate due diligence on. Silver Law Group operates on a contingency-fee basis, so the firm does not profit unless we recover funds for you. Contact Silver Law Group toll free at (800) 975-4345 or e-mail ssilver@silverlaw.com for a confidential consultation. Our attorneys represent investors worldwide in investment fraud disputes.
