Northstar Financial Investment recently entered into bankruptcy, and investors should carefully review their financial advisors’ conduct if they recommended a Northstar investment. Investors may have been told that North Star Investments could protect their nest eggs.

Investor Dispute for $500,000 Alleges Risky North Star Financial Investment

A retiree has alleged that a broker from Truist Investment Services recommended she invest approximately $500,000 in NorthStar Financial Services (Bermuda), aka “Northstar.” Northstar offers a range of investment products within a Bermuda trust structure, which the website states will provide “financial security and privacy protections.” In September 2020, the Supreme Court of Bermuda ordered Northstar to liquidate.

Today, the retiree is seeking $500,000 in damages. According to PR Newswire, the retiree wanted to protect her assets and did not want to take on unnecessary risk. Before investing in North Star Financial Services (Bermuda), the retiree had mostly kept her money in checking and savings accounts. She alleged that the Truist broker engaged in exploitation of an elderly person and unjust enrichment when he recommended Northstar. The retiree further alleged that the firm failed to supervise her broker’s conduct.

Truist Investment Services (CRD #: 17499) is a broker-dealer and a previously registered investment advisory firm that works with SunTrust Bank. SunTrust and Truist Investment Services are based out of Atlanta, Georgia. Truist offers securities, annuities, and life insurance products. This company also does business under the name SunTrust Investment Services.

What is North Star Financial Services?

The North Star Financial Services’ website states, “Bermuda has earned a formidable reputation as a leading international financial center, with a strong and stable economy.” Offshore investing is a popular way for wealthy investors to avoid taxes in the U.S.  

Trusit Investment Services: A History of Unsupervised Brokers

The $500,000 dispute is not the first investor complaint to allege failure to supervise. On May 18, 2020, Truist Investment Services entered into an Acceptance, Waiver, & Consent agreement (AWC) with FINRA. In the AWC, Truist consented to the findings that they failed to establish a written supervisory system for their representatives.

This failure allegedly led to losses for investors who purchased risky, non-traditional ETFs per the recommendation of the Truist investment advisor. FINRA alleged that the firm did not have systems in place to evaluate the suitability of the non-traditional ETFs, nor did they have systems in place to ensure that investors knew the risks of holding these types of securities for too long. (You can see a copy of the AWC here.) 

Did You Have a Complaint After Working with Truist Investment Services?

It is possible to recover losses if a Trust Investment Services broker recommended investments that do not fit your financial goals. If you lost money working with Truist, our attorneys would like to speak with you as soon as possible. Email info@fkesq.com or call (877) 238-4175 for a free case consultation.

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