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Investor Lawyers Blog$500K Northstar Financial Services (Bermuda) Claim Brought Against Truist Investment Services by Venezuelan Investors
Claimants are Older South American Investors Who Suffered Six-Figure Loss
Two investors have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Truist Investment Services, Inc., which is the broker-dealer unit of SunTrust Investment Services. The claimants, who are related, are seeking up to $500K plus interest and costs after they suffered investment losses in Northstar Financial Services (Bermuda). A panel of arbitrators will hear their case in Boca Raton, Florida.
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is representing these South American investors in fighting to recover their losses sustained after their Truist broker unsuitably recommended and sold Northstar Financial Services (Bermuda) products to them. If you too suffered similar losses, contact us today.
Unsuitability, Misrepresentations, and Omissions Alleged
The claimants were already longtime clients of SunTrust Bank who were invested in traditional banking products when a financial advisor from Truist Investment Services recommended that they invest over six figures in Northstar (Bermuda) products.
This was after knowing that these customers had purposely set up their SunTrust bank account in Miami because they wanted a safe haven for their assets, away from the political and economic turmoil they were encountering in their own country. They were clear from the start that they didn’t want to take on much risk.
Yet, their Truist broker went on to recommend Northstar Financial Services (Bermuda) to them. And while there is nothing wrong with recommending US insurance and annuity products to foreign nationals, the fact that much of these investors’ money was concentrated in an offshore account was unsuitable and too risky for them.
Now that the off-shore entity is in liquidation after filing for bankruptcy, and its owner Greg Lindberg is serving time in prison, the best chances these claimants have of recouping their losses is to pursue damages through FINRA arbitration.
Northstar Financial (Bermuda) Products Are Not a Safe Investment Choice
It is unclear why this Truist financial advisor recommended Northstar Financial Services (Bermuda) to these customers when there were much safer, US-based alternatives available that would have provided very specific protections that these off-shore investments never could.
The only logical reason is to assume that the high commissions and other compensation offered to brokerage firms and their brokers for selling these investments compelled the Truist registered representative and others at the firm who also sold these products to customers, to thrust their fiduciary duties aside for profit.
The claimants, in their FINRA arbitration case, are alleging:
- Unsuitability
- Failure to supervise
- Due diligence failures
- Misrepresentations and omissions
- Negligence
- Grossly negligent behavior
The supervision of these Truist customers’ accounts was simply inexcusable and the financial advisor involved appears to have gone unsupervised. Not only that, but year after year, when these investors’ account was reviewed, opportunities were missed to remove the claimants from Northstar (Bermuda) and invest their funds in more suitable, conservative financial products.
Seasoned Northstar Financial Services (Bermuda) Attorneys
SSEK Law Firm is representing a number of investors, including other Truist customers, who are foreign nationals in their FINRA arbitration claims against the US-based firms that sold them Northstar Financial Services (Bermuda) products.
If you suffered losses because your Truist Investment Services broker recommended this offshore investment to you, call (800) 259-9010 or, internationally via WhatsApp, text us at (713) 227-2400.