KlaymanToskes (KT), the US investor fraud law firm, is investigating the recent bankruptcy and order to liquidate Northstar Financial Services (Bermuda) on behalf of its investors.
Northstar, a segregated accounts company regulated by the Bermuda Monetary Authority (BMA), had touted its fixed and variable annuities products as offering segregated account protection, generous liquidity terms, flexible commitment periods and the benefits of a Bermuda trust structure.
In 2019 Greg Lindberg, Northstar’s owner, was indicted on federal wire fraud and bribery charges. He is currently serving in prison. Months after Lindberg’s conviction, on October 1, 2020, the BMA issued proceedings against Northstar and on March 26, 2021, the Supreme Court of Bermuda issued a winding up order against the company.
Investors are now suing broker-dealers that allegedly misrepresented Northstar as a low risk product that offered guaranteed monthly income with principal protection.
Lawrence Klayman, a securities attorney, said: “broker-dealers not only have a duty to conduct proper due diligence on their recommended investments, but also must not misrepresent or fail to disclose material facts during the course of a sale or recommendation.”
KT invited investors with losses in excess of $250,000 from investments in Northstar at full-service brokerage firms to contact KT.
KlaymanToskes, Northstar Financial Services Bermuda, Greg Lindberg, Bermuda Monetary Authority, Lawrence Klayman