Soreide Law Group is reviewing potential investor claims to bring against financial advisors and securities brokers who possibly gave unsuitable advice or committed other sales practice violations relating to Northstar Financial (Bermuda) Ltd. investment products. Let’s take a closer look at Northstar, including how Soreide Law Group might be able to help you recover your losses.
Bermuda-based financial services company, Northstar, sold annuities and other financial products to investors. Evidently, securities brokers or financial advisors at Cetera Investment Advisors, JP Morgan Securities, Bankoh Investment Services, and SunTrust Investment Services have recommended Northstar products, including annuities and investments.
Notably, conservative investors sought the company’s products for a low-risk way of generating returns and possible tax benefits.
Northstar investors and policyholders fear losing their investments. Notably, Supreme Court of Bermuda issued Northstar a winding-up order in March 2021 following the Northstar management's inability to restructure the company. The Court has oversight on this liquidation process, which is ongoing.
The company’s owner, Greg Lindberg, is currently serving a seven-year jail sentence following his conviction for conspiracy to commit bribery against the North Carolina Insurance Commissioner. Lindberg purportedly removed hundreds of millions of dollars from Northstar Financial Services (Bermuda) Ltd. following his purchase of the company. Policyholders will not receive any payment until the Court addresses segregated accounts and solvency issues.
John Johnson and Rachelle Frisby (both of Deloitte Ltd.), who are the joint provisional liquidators (“JPLs”) of Northstar, presented Bermuda Supreme Court with a report indicating that 1,230 fixed-account holders hold potential claims collectively valued at $305,576,351.00 and that 603 variable-account holders hold potential claims collectively valued at $121,249,243.00.
The JPL’s have sought the Supreme Court of Bermuda’s approval of class representatives to represent the classes of creditors of the companies. The classes include: those policyholders or investors with variable investments; policyholders or investors with fixed and indexed investments; and those creditors who do not hold fixed or variable products. As of November 2021, there is now a fixed representative and a variable representative. The JPL’s indicated that after establishing counsel for class representatives, JPLs would communicate contract details to policyholders.
The Court ordered a hearing relating to the segregated accounts issues, including to what extent, if any, do claimants in respect of any segregated accounts have claims against assets of Northstar and Omnia.
Potentially, some financial advisors made unsuitable recommendations of Northstar investments to conservative investors. Some of those financial professionals misrepresented Northstar products as conservative and low-risk, with guarantees relating to monthly income. Notably, because of Northstar's bankruptcy filings, investors might lose all of their principal.
Has a US-based financial advisor or securities broker recommended or sold Northstar products to you? If so, you could potentially bring a lawsuit against the financial professional and their firm to recover your losses. Notably, Soreide Law Group has filed and successfully resolved over ten separate lawsuits on behalf of Northstar Bermuda victims. Contact Soreide Law Group at (888) 760-6552 and speak with an experienced securities lawyer about your situation. Soreide Law Group represents clients on a contingency fee basis and advances all costs.
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