Northstar Bermuda Bancwest Investigation | KlaymanToskes
Summary
National investor fraud law firm, KlaymanToskes (“KT”), commences an investigation (Northstar Bermuda Bancwest) of potential FINRA arbitration claims on behalf of investors who sustained losses exceeding $250,000 in Northstar Financial Services (Bermuda) (“Northstar”) purchased through Bancwest Investment Services, which is a subsidiary of BNP Paribas’s (BNPQY: U.S. OTC) Bank of the West. 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 the 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. KT has office locations in California, Florida, New York, and Puerto Rico.