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Investor Lawyers BlogBeechwood Bermuda Investor Seeks Up to $500K From Cetera and Broker Leo Li-Yuan Chien
Beechwood Bermuda Investor Was Unsuitably Recommended Non-Traded REIT Healthcare Trust
Another Chinese investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Cetera Investment Services over losses suffered in Beechwood Bermuda (a Northstar Financial Services (Bermuda)-related product).
This investor also suffered investment losses in the non-traded real estate investment trust, Healthcare Trust Incorporated (HTIA). The claimant alleges negligence, unsuitability, poor supervision, and concentration, among other claims, and is seeking up to $500K in damages.
Cetera broker Leo Li-Yuan Chien is also a respondent in this FINRA arbitration case.
Beechwood Bermuda, formerly known as PB Life and Old Mutual (Bermuda), is now Beechwood Omnia. The company is a division of Northstar Financial Services (Bermuda) which, in 2018, was acquired by Global Bankers and billionaire owner Greg Lindberg. He was indicted on criminal charges in 2019 and convicted of wire fraud and bribery in 2020. Lindberg likely funneled money from Northstar (Bermuda) to his special purpose vehicles in the US.
Our Northstar Financial Services (Bermuda) investment lawyers represent this Beijing investor and others in FINRA arbitration to recoup their losses from Cetera. Contact us today at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com).
Beijing Investor is Also Alleging Misrepresentations and Omissions
The Chinese national investor used to have an account with East West Bank, which is how he met his Cetera financial advisor. The broker-dealer recommended that the claimant invest $350K of his savings in Beechwood Bermuda, which is now defunct, and $200K in Healthcare Trust, which is in financial trouble.
Unfortunately, Cetera did not adequately disclose the risks and woes involved in both investments to the investor. This included, regarding Northstar (Bermuda), in particular:
- This was an unrated product.
- Statutory financial statements, compliance declarations, and capital and solvency returns were not filed at the end of 2018 and 2019.
- Lindberg, as we mentioned earlier, was indicted in 2019.
Healthcare Trust was also unsuitable and too risky for this Chinese investor. Cetera essentially 100% concentrated his funds in risky products even though better-rated, more protected comparable investments were available.
Consider that this foreign national was seeking stability and safety in the US. Why wouldn’t his financial advisor recommend safer investments that were more suitable for his portfolio and risk tolerance level?
Cetera Knew Northstar (Bermuda) and Healthcare Trust Were Having Problems
Cetera Investment Services also routinely assured this investor that all was well and no changes needed to be made to his investments. This was even as Northstar (Bermuda) and Healthcare Trust were experiencing financial woes.
Not only that, but this investor specifically told Cetera that he wanted his principal guaranteed, assets preserved, and minimal risks. All of these were promised to the claimant. This is why it makes no sense that Cetera would invest this Chinese national in an obscure company in Bermuda and a risky non-traded REIT.
According to BrokerCheck, Cetera California-based broker Leo Li-Yuan Chien has been in the industry for 19 years. Other firms where he has been registered include HSBC Securities (USA), Citigroup Global Markets, Citigroup Investment Services, Western International Securities, IFMG Securities, Bancwest Investment Services, and Linsco/Private Ledger Group.
Skilled Beechwood Bermuda Investment Attorneys
SSEK Law Firm represents investors from Asia, the Caribbean, Latin America, and Central America in pursuing their financial recovery for losses in Northstar Financial Services (Bermuda) and its related entities.
Unfortunately, many broker-dealers and their financial advisors sought to take advantage of the higher commissions and other compensation they stood to earn from recommending Northstar (Bermuda) products to customers.
Our Beechwood Bermuda and Northstar Financial Services (Bermuda) lawyers have filed dozens of FINRA arbitration claims against broker-dealers on behalf of investors. In the US, call us at (800) 259-9010. Internationally, contact us via WhatsApp (text only): 712-227-2400.