The Law Firm of David R. Chase is conducting an investigation to determine whether investors have legal claims to recoup their losses suffered in investments offered by Northstar Financial Services (Bermuda) Ltd. These investments include:
- Global Interest Accumulator
- Global VIP Elite
- Global Index Product
- Global Advantage Select
- Global Advantage Plus Series
Numerous securities brokers and financial advisors allegedly recommended Northstar Financial Services investments to their clients, touting it as a conservative, safe investment with guaranteed returns. These investment have now reportedly suspended monthly income distributions and have lost most of their value due to the recent implosion of Northstar Financial Services.
History of Northstar Financial Services (Bermuda) Ltd.
Formed in the late 1990s and located in Bermuda, Northstar Financial Services offered fixed-rate and variable-rate investments and annuity products with purported tax benefits as compared to certain US-based investments.
In mid-2018, the company was sold to a Bermuda holding company owned by Greg Lindberg, who was recently convicted by a federal jury of conspiracy to commit honest services wire fraud and bribery.
According to Bermuda court documents, shortly after Lindberg assumed ownership of Northstar Financial Services, he “reallocated the assets . . . mainly in special purpose vehicle structures, under the control of Mr. Lindberg, in the US.” After Lindberg’s federal indictment, Northstar Financial Services Investors began to request liquidation of their investments, which the company has apparently not satisfied. Bermuda court records suggest that Northstar could be facing a deficit of approximately $265 million.
Looking to recoup your losses in Northstar Financial Services (Bermuda)?
Brokerage firms are obligated to understand and perform due diligence on investment their brokers and advisors sell.
If your financial advisor recommended an investment in Northstar Financial Services (Bermuda), the firm may be legally responsible for your investment losses if it failed to adequately investigate the company, including any red flags, and for potentially making an unsuitable investment recommendation. Northstar Financial services investments may not have been suitable for the elderly and/or retirees who were seeking a safe, low-risk and conservative financial product.