Trinidad & Tobago Investor Files Northstar Financial Services (Bermuda) Claim Against Truist Investment Services

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Jul 12, 2022, 09:00 ET

Claimant Alleges Unsuitable Offshore Investment Led To Significant Losses

HOUSTON, July 12, 2022 /PRNewswire/ -- An investor who lives in Trinidad & Tobago filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Truist Investment Services over losses he sustained in Northstar Financial Services (Bermuda). The claimant is seeking up to six-figures in damages after he allegedly was unsuitably recommended this risky, offshore-like annuity product despite making it clear to the broker-dealer that he was seeking safety and security for his family's assets.

Our Northstar Financial Services (Bermuda) investment attorneys are representing this investor in FINRA arbitration against Truist Investment Services in his fight to recoup his losses.

Truist Investment Broker Accused of Overconcentrating Claimant's Savings in Northstar (Bermuda)

This Trinidad & Tobago investor and his wife had a bank account with SunTrust. It was through a SunTrust branch that they met their Truist Investment Services broker, who allegedly recommended that they do more with their money than keep it in savings. Their Truist financial advisor then allegedly proceeded to overconcentrate nearly 100% of their assets in Northstar Financial Services (Bermuda), which has since filed for bankruptcy protection and is now in liquidation proceedings.

This claimant's Truist Investment broker allegedly misrepresented the Northstar (Bermuda) investment to him as extremely safe and one in which his principal would be guaranteed.

Among the developments that should have raised concerns that the claimant should have been notified about:

An assessment by Moody's in 2011 that gave a very negative outlook for Bermuda as a place to invest.

Northstar Financial Services (Bermuda)'s failure to prepare and submit statutory financial statements, statutory financial returns, capital and solvency returns, declarations of compliance, and certificates of compliance for the years ending in 2018 and 2019. Northstar (Bermuda) filed for bankruptcy protection in 2020.

The indictment and 2020 conviction of Northstar Financial Services (Bermuda) owner Greg Lindberg for bribery and wire fraud. Lindberg is known for utilizing his annuity and asset companies to funnel funds to other companies under his control and he is believed to have done the same with Northstar (Bermuda). As far back as 2018, the US Department of Justice had launched a probe into his activities in Bermuda.

Visit Northstar Financial Services (Bermuda) to find out more.

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SOURCE Shepherd Smith Edwards & Kantas LLP