BOCA RATON, Fla., Sept. 28, 2021 /PRNewswire/ — An elderly Venezuelan investor is seeking six figures in damages from Truist Investment Services (aka SunTrust Investment Services) over losses he suffered in Northstar Financial Services (Bermuda). The claimant contends that the firm overconcentrated his account by heavily investing his life savings in this off-shore entity, which is now undergoing liquidations proceedings after filing for bankruptcy.
This is one of a number of FINRA arbitration claims that our Northstar Financial Services (Bermuda) attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) have filed against Truist Investment Services and other US-based brokerage firms for unsuitably marketing Northstar (Bermuda).
The claimant, who is retired, had looked to the US as a safe haven for his assets because of the economic turmoil in the region where he lives. He initially only had a bank account with SunTrust Bank in Miami, which held his lifetime of savings. SunTrust proceeded to refer this customer to Truist Investment Services, whose financial advisor then concentrated the investor’s funds in a Northstar (Bermuda) fixed-contract annuity.
The Truist broker reassured him that this was a product that fit his investing goals. A simple branch audit could have easily identified that Northstar Financial Services (Bermuda) was not a good fit for this particular investor.
In 2019, this investor attempted to redeem his investment in Northstar (Bermuda) and have his funds deposited in a bank account. It was then that the Bermuda entity notified him by letter that his assets were frozen because redemptions had exceeded free cash flow.
This Truist customer then spoke to his financial advisor, who falsely told him that although there were liquidity issues the problem would resolve. Considering that Northstar Financial Services (Bermuda) owner Greg Lindberg was indicted earlier that year, it is surprising that the broker-dealer didn’t do more to help this investor get out.
SSEK Law Firm represents investors throughout the world in pursuing their Northstar Financial Services (Bermuda) losses from the US-based broker-dealers and financial advisors who unsuitably sold them investments in:
- Global Advantage Select
- Global Index Product
- Global Advantage Plus Series
- Global Interest Accumulator
- Global VIP Elite
- PB Investment Holdings
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SOURCE Shepherd Smith Edwards & Kantas LLP