National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation (Northstar Bermuda Unionbanc) of potential FINRA arbitration claims on behalf of investors who sustained losses exceeding $250,000 in Northstar Financial Services (Bermuda) (“Northstar”) purchased through Unionbanc Investment Services, which is a subsidiary of Mitsubishi UFJ Financial Group, Inc.’s (NYSE: MUFG) American holding company. Northstar was a Segregated Accounts Company regulated by the Bermuda Monetary Authority, and touted its fixed and variable annuity products as offering segregated account protection, generous liquidity terms and a variety of commitment periods, as well as benefits of a Bermuda trust structure.
Investors are suing their investment firms after Northstar’s bankruptcy and liquidation in which investors allege that their financial advisors misrepresented the investment as a safe, low risk product like a CD that had guaranteed monthly income with principal protection. According to securities attorney, Lawrence L. Klayman, “broker-dealers not only have a duty to conduct proper due diligence on their recommended investments, but also must not misrepresent or fail to disclose materials facts during the course of a sale or recommendation.”
In 2019, Northstar owner Greg Lindberg was indicted on federal wire fraud and bribery charges, and he is currently serving in prison after his conviction last year. On October 1, 2020, the Bermuda Monetary Authority issued proceedings against Northstar, and, on March 26, 2021, the Supreme Court of Bermuda issued a winding up order against the company.
The sole purpose of this release is to investigate potential FINRA arbitration claims relating to Unionbanc Investment Services’s sales practices concerning Northstar Financial Services (Bermuda). Current and former clients of Unionbanc Investment Services who suffered losses exceeding $250,000 from Northstar investments, and who have information related to the handling of their investments, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131.
KT is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KT has recovered more than $220 million for investors in FINRA arbitrations. KT has office locations in California, Florida, New York, and Puerto Rico.