BOCA RATON, Fla., July 28, 2021 /PRNewswire/ — An older retired couple from South America is pursuing a FINRA arbitration claim against Raymond James & Associates, Inc. after they suffered a seven-figure loss in Northstar Financial Services (Bermuda). Now, the senior investors are seeking up to $5M in damages, along with interest and costs.
Our Northstar (Bermuda) arbitration attorneys at Shepherd Smith Edwards and Kantas are representing these South American nationals and a panel of arbitrators will hear their case in Boca Raton, Florida.
The couple had looked to the US as a safe haven for their funds, including their savings, and were initially with Morgan Keegan Bank. However, following a merger, the couple became clients of Raymond James.
The brokerage firm initially recommended that the claimants concentrate more than $1M of their funds in Northstar Financial Services (Bermuda). The couple would go on to follow further recommendations by their financial advisor that would cause them to end up investing over $2.2M.
Meanwhile, their Raymond James broker told them that their Northstar investment was “guaranteed,” and the claimants, both unsophisticated investors, trusted their financial advisor’s assertions while having no idea that these offshore insurance products lacked US-based insurance protections and were very high risk. Northstar Financial Services (Bermuda) has since gone into bankruptcy and liquidation proceedings and is no longer solvent. Its owner, Greg Lindberg, is in prison and likely funneled the off-shore entity’s money into other companies he operated.
Two years ago, when the claimants asked that their Raymond James financial advisor remove them from Northstar Financial Services (Bermuda), the advisor misrepresented the exit fees involved, falsely inflating the amount needed to get out or end the contract.
Considering that the surrender fee would have been much less, the advisor’s actions constituted a gross misrepresentation. By the time the retirees tried to exit the investment again, it became impossible because a Bermuda court had frozen the assets in the wake of Northstar Financial Services (Bermuda)’s financial woes.
This is not the first FINRA arbitration claim that SSEK Law Firm has brought against Raymond James Financial or other brokerage firms over Northstar (Bermuda) investor losses.
If you suffered losses in Northstar (Bermuda) products, contact SSEK Law Firm below for a free consultation:
Kirk Smith, [email protected]
US Toll Free: (800) 259-9010
Mexico Toll Free: (800) 283-3403
International via WhatsApp (text only): 713-227-2400
SOURCE Shepherd Smith Edwards & Kantas LLP