FINRA claim against Northstar Financial Services

Infinex Broker Roberto Leslie Accused of Unsuitably Recommending Offshore Entity

Two investors from Mexico City who worked with Infinex financial advisor Roberto Francisco Leslie have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Infinex Investments. Related to their investment losses in Northstar Financial Services (Bermuda). Alleging unsuitability, concentration, and other broker misconduct, they seek up to $500K for their losses.

Our Northstar Financial Services (Bermuda) investment attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent these claimants in FINRA arbitration against Infinex. The hearing will take place in Houston, Texas.

Investors Sought Safety in the US, Instead Sustained Financial Losses

The investors are related, and both suffer from health issues, they met their Infinex Investments financial advisor through a Popular Bank. That offers investments and insurance products through the brokerage firm. They contend that Infinex allegedly recommended that they invest a considerable amount of their assets in Northstar Financial Services (Bermuda), which has since filed for bankruptcy protection and is in liquidation proceedings.

These customers, who are inexperienced investors, claim that Infinex promised them safe returns with minimal risk. While reassuring that their account would be structured for guaranteed principal protection. Instead, the firm purportedly placed their funds in an offshore, annuity-like product which was highly risky and lacked the kind of protections they would have found with a US-based investment. They allege that their Infinex financial advisor would go on to essentially 100% concentrate their assets in this offshore entity even though the claimants had wanted to keep their money safe and preserved in the US.

One can only assume that the high commissions earned for selling Northstar Financial Services (Bermuda) products to customers may have been a primary incentive for Infinex and its broker.

Why were the Mexican Investors concentrated on this type of product?

As far back as 2011, Moody’s had already issued a negative outlook for investing in Bermuda.
In 2019, Northstar (Bermuda) owner Greg Lindberg was indicted and in 2020 convicted of bribery and wire fraud.
These events occurred not long after his Global Bankers acquired Northstar Financial Services (Bermuda) in 2018.
At the end of 2018 and 2019, the company was delinquent in filing critical documents related to statutory financial returns, capital solvency returns, and its declarations and certificates of compliance.

Yet, at no time did Infinex Investments apprise these customers of any of these issues. In their FINRA arbitration claim over their Northstar (Bermuda) losses, these investors are alleging unsuitability, overconcentration, misrepresentations, and omissions. Along with the failure to supervise, negligence, and other claims.

Allegedly, Lindberg may have funneled money from Northstar Financial Service (Bermuda) to his other companies. The offshore entity and affiliated companies were estimated in late 2020 to have incurred an over $260M deficit while only being able to report just $8M in assets. This is just one of the reasons why investors should be going after the brokerage firms that unsuitably sold them Northstar (Bermuda) products.

Skilled Northstar (Bermuda) Investment Lawyers Firm

SSEK Law Firm investment lawyers represent investors from all over the world. Our seasoned securities law experts work against many brokerage firms that sold Northstar Financial Services (Bermuda) investments. Many of our clients contend that they had no idea of the alleged type of security fraud, how risky investing in this offshore entity was, or that it had been in trouble over these past few years.

If you are an investor that was sold Northstar (Bermuda) products by a bank or brokerage firm, our securities lawyers can represent you in FINRA arbitration against the specific broker-dealer and help you recover your losses.

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List of Northstar Financial Services (Bermuda) Products That Were Sold to Investors

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