Chicago-based Stoltmann Law Offices continues to hear from investors who’ve suffered losses from dealing with financial advisor who sold them annuity products from Bermuda-based Northstar Financial Services. Northstar filed for bankruptcy last year. Investors have been filing claims as the company is being liquidated by the Bermuda Monetary Authority. Investors across the world are filing claims against Northstar and the many brokerage/financial firms that sold these “annuities” to investors.
One Japanese investor, for example, contends her “Bancwest Investment Services broker proposed a Northstar investment rather than keeping her money in savings and checking accounts.” She is just one of many investors who are filing claims against brokers through FINRA Dispute Resolution, charging they unsuitably recommended and sold Northstar’s fixed- and variable-rate annuity and other products that proved to be unsafe.
“Investors in Northstar Financial wanted their money and the company was unable to pay liquidation or redemption requests,” according to David Fox in the Royal Gazette. “The company was estimated to have incurred a deficit upwards of $260 million. By September 2020 they were reporting just $8 million in assets, and they filed for bankruptcy protection in 2020.”