In the wake of Northstar Financial Services (Bermuda)'s 2021 bankruptcy and liquidation putting investors at risk of losing significant funds after Northstar (Bermuda) owner Greg Lindberg was arrested for fraud, increasing investigations by both regulators and private firms alike have unearthed problem stockbrokers—and their associated broker-dealers—that unsuitably sold the now-costly Northstar (Bermuda) suite of products.
One family of clients—including an elderly couple in their late 80s and early 90s—who were unsuitably sold Northstar (Bermuda) bya Cetera Investments broker claimed damages of $1.5 million; their daughter-in-law, also a widow supporting a disabled child, claimed several hundreds of thousands of dollars in damages due to the unsuitable sales of the Northstar (Bermuda) offering.
Additional investors have also filed claims against representatives and investment advisers that unsuitably recommended and sold Northstar (Bermuda) positions and customers continue to do so as the financial hit of these improper sales practices become more apparent. The suitability claims may also include elements such as misrepresentation, omission of material facts (such as Northstar Bermuda's risks), and overconcentration of the complex product in conservative-to-moderate minded investors' investment accounts.
Additional claims against the broker-dealers themselves may include a failure to supervise brokers who unsuitably sold Northstar (Bermuda) or brokerages that failed to adequately communicate with and inform investors of Northstar's financial woes.
In August 2021, Raymond James first drew attention for potentially unsuitable sales of Northstar (Bermuda) and over the past few months the investigation has ramped up, suggesting the possible web of unsuitable sales may be larger than previously thought.
If you invested with a broker or investment adviser at Raymond James, Copper Financial, Cetera Investment Services, or any other investment firm and suffered financial harm as a result of unsuitable recommendations to purchase or trade Northstar (Bermuda) products, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.