Did you lose money investing in Northstar Financial Services (Bermuda) Ltd?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in Northstar Financial Services (Bermuda) Ltd at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
Purportedly, Northstar Financial Services (Bermuda) Ltd was offered to investors by their financial advisors as safe, secure, and totally liquid, similar to a money market account, and that they would just have to pay a small surrender fee to get their money out at anytime. However, it appears that the money invested may be a total loss. After numerous attempt to try and redeem their funds, many investors seem unable to get any of their funds back.
The last correspondence received by some investors from the brokerage firm stated that “in late 2018, Northstar Financial Services (Bermuda) Ltd was acquired by North Carolina-based conglomerate Global Bankers. This company was ultimately owned by Greg Lindberg. Mr. Lindberg was subsequently indicted on corruption charges in his home state of North Carolina in early 2019.”
There are likely many broker-dealers and financial advisors that offered the product, but at this point it appears that the following broker-dealers sold it to their clients:
Ocean Financial Services, LLC (CRD#:164289)
Bankoh Investment Services, Inc. (CRD#:29280)
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Northstar Financial Services (Bermuda) Ltd, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Northstar Financial Services (Bermuda) Ltd and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
