Northstar Financial Services (Bermuda) LTD Files Chapter 15 Bankruptcy
Did your broker recommend an investment in Northstar Financial Services (Bermuda) LTD? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA dispute resolution claim against your brokerage firm.
Many financial advisors in the United States apparently sold Northstar Financial Services (Bermuda) LTD to investors allegedly promising tax benefits and a safe, low risk investment. The company reportedly offered variable and fixed rate annuity products, but went belly up last September when it filed for Chapter 15 bankruptcy, according to court records.
In April 2021, the Bermuda Supreme Court reportedly turned down a request by the company which asked for more time to restructure. Instead, the company will be liquidated and proceeds will go to creditors upon approval of the Bermuda Supreme Court.
Chapter 15 bankruptcy allows foreign nationals to file for bankruptcy in the U.S. bankruptcy courts if they have assets, property, or business in multiple countries, including the U.S.
There have been several lawsuits filed against various broker dealers after the company’s apparent collapse. Allegations state that financial advisors misrepresented Northstar as a safe, low risk product similar to a bank CD, promising guaranteed monthly returns as well as protection of principal.
Potential Lawsuits to Recover Financial Losses
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Northstar Financial Services (Bermuda) LTD offerings to investors. Specifically, the firm is investigating the following Northstar Financial Services offerings:
- Global Index Product
- Global Interest Accumulator
- Global Advantage Plus Series
- Global VIP Elite
- Global Advantage Select
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
If you have suffered losses investing in Northstar Financial Services (Bermuda) LTD, please contact The White Law Group at 888-637-5510 for a free consultation with a securities attorney.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information on the firm, visit www.WhiteSecuritiesLaw.com.