Northstar Bermuda JP Morgan Investigation | Klayman Toskes
Summary
National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation (Northstar Bermuda JP Morgan) of potential FINRA arbitration claims on behalf of investors who sustained losses exceeding $250,000 in Northstar Financial Services (Bermuda) (“Northstar”) purchased through J.P. Morgan Chase Co.’s (NYSE: JPM) subsidiary, J.P. Morgan Securities (“JPMorgan”). Northstar was a Segregated Accounts Company regulated by the Bermuda Monetary Authority, and touted its fixed and variable annuity products as offering segregated account protection, generous liquidity terms and a variety of commitment periods, as well as benefits of a Bermuda trust structure. Investors are suing their investment firms after Northstar’s bankruptcy and liquidation in which investors allege that their financial advisors misrepresented the investment as a safe, low risk product like a CD that had guaranteed monthly income with principal protection. According to securities attorney, Lawrence L. Klayman, “broker-dealers not only have a duty to conduct proper due diligence on their recommended investments, but also must not misrepresent or fail to disclose materials facts during the course of a sale or recommendation.” In 2019, Northstar owner Greg Lindberg was indicted on federal wire fraud and bribery charges, and he is currently serving in prison after his conviction last year. The sole purpose of this release is to investigate potential FINRA arbitration claims relating to JPMorgan’s sales practices concerning Northstar Financial Services (Bermuda).