Call Now for a FREE Consultation (888) 513-3010

Colling Gilbert Wright Is Investigating Northstar Financial Services (Bermuda) Ltd

Colling Gilbert Wright is currently investigating possible claims related to investments in a variety of investment and insurance products offered by Northstar Financial Services (Bermuda) Ltd. Some of the investments offered by Northstar Financial Services (Bermuda) include, but are not limited to:

  • Global Interest Accumulator
  • Global Advantage Plus Series
  • Global Advantage Select
  • Global VIP Elite
  • Global Index Product

Northstar Financial Services investments were sold by various financial advisors, have experienced suspension of monthly income payments, prolonged illiquidity, and have lost nearly the entirety of their value due to the recent collapse of Northstar Financial Services.

Background On Northstar Financial Services (Bermuda) Ltd

Northstar Financial Services was established in the late 1990s to offer fixed-rate and variable-rate investment and annuity products while based in Bermuda, offering supposed tax benefits in comparison to—for example—certain US-based investment products. Northstar Financial Services largely avoided the limelight until mid-2018, when the company was sold to a Bermuda holding company owned by the now-convicted fraudster Greg Lindberg. On March 5, 2020, a federal jury convicted Lindberg of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds. Lindberg is now infamous for amassing a billion-dollar empire of insurance and annuity companies which he used to funnel money into ventures he owned and controlled, making Lindberg a billionaire at one point.  According to Bermuda court documents, shortly after Lindberg took over ownership of Northstar Financial Services, Lindberg “reallocated the assets . . . mainly in special purpose vehicle structures, under the control of Mr. Lindberg, in the US.”

Following the US Department of Justice’s investigation and ultimate indictment of Lindberg, Northstar Financial Services Investors began requesting to liquidate their investments and surrender their policies en masse. Unfortunately, the company’s financials were not what they seemed, and Northstar Financial Services has been unable to meet these requests. Bermuda court documents from September 2020 indicate that Northstar could have a deficit of $265 million.

Products Offered Were Pitched by Financial Advisors As Sound Investment Vehicles

Investors have alleged that financial advisors were pitching investments in Northstar as safe, secure investments with guaranteed returns above and beyond yields from conservative bank CDs. Financial advisors likely sold this product because of the high commissions they would receive by recommending them to their clients. At least one investor has indicated that they were not even notified by their advisor of the change of Northstar’s change of ownership to Greg Lindberg.

Did You Lose Money In Northstar Financial Services (Bermuda)?

Brokerage firms are obligated to investigate and understand the investments they recommend. If your financial advisor recommended Northstar, the firm may be liable for failure to properly investigate the history, background, holdings, financials, and red flags associated with the company, resulting in the recommendation of an investment that was risky, speculative, and ultimately collapsed.

Insurance and annuity investment products are highly complex, and can carry high up-front costs, fees, and commissions. These costs are often hidden from unsuspecting main street investors. The recommendation of these products without proper disclosures can result in investors suffering losses and may constitute investment fraud. 

Contact Our Securities Negligence and Fraud Attorneys Today

If you or someone you know experienced losses investing in a Northstar Financial Services product, contact Colling Gilbert Wright for a confidential consultation toll-free at (800) 766-1000. We serve clients in Orlando, Tampa, Miami, and other areas in Florida and throughout the nation.