Global VIP and Global Advantage Select Were Unsuitable For Claimants
Two older investors from Venezuela have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Ocean Financial Services over losses they sustained in Northstar Financial Services (Bermuda). They are requesting about $385K, plus interests and costs, after the broker-dealer unsuitably recommended Northstar (Bermuda)’s Global Advantage Select and Global VIP.
Sonn Law Group, PA and Shepherd Smith Edwards and Kantas, LLP and jointly represent this couple. A FINRA arbitration panel will hear their Northstar Financial Services (Bermuda) investment claim in Boca Raton, Florida.
Ocean Financial Services Abused Claimants’ Trust & Overconcentrated Their Assets
For years, the claimants had been banking with Ocean Bank, where their money was safely invested in CDs. The bank introduced them to a broker at its subsidiary, Ocean Financial Services. This financial advisor then concentrated a large portion of the couple’s savings on Northstar Financial Services (Bermuda) products.
Why would their Miami financial advisor recommend investments from an obscure, offshore company? These customers had made it clear that they wanted the protections that came with making US-based investments. One can only assume that high commissions were Ocean Financial Services’ motivation for selling these illiquid, risky investments.
Ocean Financial Services didn’t properly explain to the couple that Global Advantage Select offered a fixed 4% return, would mature after ten years, and there would be surrender charges through year eight. Their FINRA arbitration filing also notes that the broker neglected to make sure they understood that Global VIP had a “starting 1.3% variable rate investing in a ‘model portfolio’ involving ‘moderate equity’ with a maturity of five years, also having a surrender charge through the five years.”
These inexperienced investors were reassured time and again that their Northstar (Bermuda) products brought minimal risk and would garner safe returns.
Negligence, Misrepresentations, and Omissions Alleged
In 2018, Global Bankers acquired Northstar Financial Services (Bermuda). The following year, owner Greg Lindberg was indicted and later convicted of bribery and wire fraud. Lindberg is believed to have funneled money from Northstar (Bermuda) to his other companies. In December 2020, the offshore entity filed for bankruptcy protection.
Yet, at no time did Ocean Financial Services apprise investors of these developments, including that Northstar Financial Services (Bermuda) neglected to submit:
- Statutory financial statements and returns
- Capital and solvency returns
- Declarations of compliance
- Certificates of compliance
The firm failed to submit these documents for the years ending on December 31, 2018, and December 31, 2019. These investors are claiming negligence, failure to supervise, unsuitability, overconcentration, misrepresentations and omissions, possible fraud, and other violations.
Securities Lawyers Representing Northstar (Bermuda) Investors From All Over The World
Unfortunately, many foreign nationals were sold annuities and other products from Northstar Financial Services (Bermuda) by their US-based financial advisors. This has led to significant losses for these clients, who thought they were protecting their assets and savings. Instead, they are now finding that their investments in this obscure company may currently be worthless.
Even with liquidation proceedings already taking place in Bermuda, your best bet for financial recovery is to file your own FINRA arbitration claim against the brokerage firm that sold you these products and retain the services of seasoned Northstar (Bermuda) investment attorneys.
Sonn Law Group represents many Northstar Financial Services (Bermuda) claimants, including investors from Central America, and Latin America, against other broker-dealers.
Call the Sonn Law Group at (877)-969-2412 or contact us online.