National investor fraud law firm, KlaymanToskes (“KT”), announces an investigation on behalf of investors in Northstar Financial Services (Bermuda) Ltd. following its recent bankruptcy and order to liquidate by the Bermuda government.
What is Northstar Financial Services (Bermuda) Ltd?
Originally created in the 1990s, Northstar Financial Services was a Segregated Accounts Company regulated by the Bermuda Monetary Authority, and touted its fixed and variable annuities products as offering segregated account protection, generous liquidity terms and a variety of commitment periods, as well as the benefits of a Bermuda trust structure. Northstar Financial Services (Bermuda) had an international reach. As of 2017, the company had distribution agreement with a number of partners to sell its investment products across a broad range of firms and advisors not only in the United States, but across the globe, including India, Switzerland, and the Middle East.
What Investments Did Northstar Financial Services (Bermuda) Ltd. Offer?
Northstar Financial Services (Bermuda) Ltd.’s products included, but are not limited to:
- Global Advantage Plus Series
- Global Index Product
- Global VIP Elite
- Global Advantage Select
- Global Interest Accumulator
The Fall of Northstar Financial Services (Bermuda) Ltd.
In 2018, Northstar Financial Services (Bermuda) Ltd. was sold to a Bermuda holding company owned by Greg Lindberg. In 2019, the United States Department of Justice indicted Lindberg on federal wire fraud and bribery charges. The next year, he was convicted in 2020, and was sentenced to seven years in federal prison.
After Lindberg’s indictment, investors who held Northstar Financial Services (Bermuda) products moved to liquidate their holding, but the company was unable to pay liquidation or redemption requests. Then, in September 2020, Northstar Financial Services (Bermuda) filed for Chapter 15 bankruptcy, and joint and provisional liquidators were granted by the Bermuda Court to wind up the company.
Investors are now suing their broker-dealers after the company’s bankruptcy and liquidation in which they allege that their financial advisors misrepresented Northstar Financial Services (Bermuda) as a safe, low risk product like a bank CD that had a guaranteed monthly income with principal protection. According to securities attorney, Lawrence 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 material facts during the course of a sale or recommendation.”
KlaymanToskes is a leading securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds. K&T has offices in locations in California, Florida, New York and Puerto Rico.
Investors with losses in excess of $250,000 from investments in Northstar Financial Services (Bermuda) Ltd. at full-service brokerage firms who have information related to the handling of their investment portfolios are encouraged to contact Lawrence Klayman, Esq., at (561) 542-5131.