Articles Tagged with Global Advantage Select

Stoltmann Law Offices, P.C., a Chicago-based securities, investment, and consumer protection law firm offering representation on a contingency fee basis to investors and victims nationwide, is concerned about the slow drip of news coming out of Bermuda about the NorthStar Financial liquidation. Recently, investors received a letter from the NorthStar informing them about the appointment of  representatives for the various investor classes. These representatives would serve the function similar to a creditor’s committee in US bankruptcy court. These representatives would stand in the shoes of and represent the investors from each class of NorthStar investors. The Chief Judge overseeing the liquidation in Bermuda along with the group known as the “joint provisional liquidators” will ultimately choose the representatives.

Regardless of how this liquidation ultimately unfolds, investors need to realize they are looking at substantial losses on their annuities and insurance contracts. There does not appear to be assets sufficient to make investors whole, really, nowhere close to it.  As this liquidations process unfolds and crawls along through this process, investors hoping for a miracle, need to splash some cold water on their face and look to other options to recover their investment losses.

If you were sold your NorthStar Bermuda insurance or annuity contracts by a U.S.-based financial advisor, broker, or investment advisor, you could have viable claims to pursue against the brokerage firm that employed the advisor at the time of sale.  These actions cannot be filed in a U.S. Court. Instead, pursuant to the contract binding you, the investor/client, to the brokerage firm, you must submit all disputes to arbitration through the Financial Industry Regulatory Authority (FINRA).  The FINRA Arbitration process is simpler than filing a claim in court. There are no depositions and motion practice is limited, specifically, motions to dismiss which bar claims for legal reasons without being heard. In FINRA Arbitration, these sorts of motions to dismiss are greatly limited, making it easier for investors to gain access to the discovery they need from the brokerage firm to win their case.

Chicago-based Stoltmann Law Offices represents investors nationwide who’ve suffered losses from dealing with broker-advisors who’ve sold them fraudulent investment products.

Broker-advisers should be looking out for you when it comes to the investments they sell. But sometimes they drop the ball in a big way, although they are still legally responsible to ensure that what they sell you is legitimate. Brokers across the world have been selling products from Northstar Financial Services (Bermuda). The company was known for its variable annuities, which combine mutual funds within a “wrapper” of an insurance policy. You can invest in a range of vehicles from bonds to stocks. When you’re ready to retire, you can “annuitize” the product into monthly payments. When you die, your survivors will be paid a death benefit.

Northstar filed for bankruptcy last year, leaving investors holding the bag. Lawyers have been filing claims for investors as the company is being liquidated by the Bermuda Monetary Authority. What does that mean for investors who bought the company’s annuities? The news is not good.  “Clearly now that these investments have appointed a liquidator and are being unwound investors are quickly realizing their fear that their principal may never get returned in full as promised,” noted one law firm representing investor claims. For U.S. investors, though, it’s possible to file an arbitration claim if a FINRA-registered brokerage firm sold you Northstar products.

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