Latin American Investor Files Six-Figure Northstar (Bermuda) Fraud Claim Against Truist Investment Services

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May 20, 2021, 10:40 ET

MIAMI, May 20, 2021 /PRNewswire/ -- A senior investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim seeking up to $500K in damages against Truist Investment Services for losses he suffered in Northstar Financial Services (Bermuda). The claimant, who is in his seventies, is a retired Catholic Priest who lives in Bogota, Colombia, and was a longtime client of SunTrust Bank.

Truist Investment Services is SunTrust's brokerage arm and is based in the United States. Ex-SunTrust Advisory Services investment adviser, Luisa Gonzales, was this investor's financial representative.

The claimant invested mostly in bank products and checking and savings accounts with SunTrust. In 2016, Gonzales recommended that he invest $190K in Northstar Financial Services (Bermuda) and he ultimately suffered a six-figure loss.

The Northstar Financial Services (Bermuda) product was an offshore annuity that tends to be riskier than comparable US-based annuities. For an investor seeking safety and low risk, there was simply no reason for then SunTrust Advisory Services advisor, Luisa Gonzales, to recommend one of these products. However, like all products from this company, the products likely paid higher commissions, bonuses, remunerations, or other incentives.

The claimant at no point was made aware that this could prove to be a risky investment and it appears that Truist Investment Services marketed all Northstar Financial Services (Bermuda) products in a similar fashion by misrepresenting the risks.

This investor tried to get out of his Northstar Financial Services (Bermuda) last year but to no avail. Now, he is alleging misrepresentations and omissions, negligence, unsuitability, breach of fiduciary duty, other breaches, failure to supervise, and the abuse, neglect, and exploitation of elderly persons and disabled adults.

Gonzales, who has worked for 14 firms in 19 years in the industry, appears to have been self-supervised. This lack of supervision by Truist Investment Services and SunTrust was simply inexcusable.

Our Northstar Financial Services (Bermuda) fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this Latin American investor in his FINRA arbitration claim. A FINRA arbitration panel will hear his fraud case in Miami, Florida.

For more information about Northstar (Bermuda) losses and how they may be impacting you, see our FAQ section available in Spanish and English.

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SOURCE Shepherd Smith Edwards & Kantas LLP