Northstar Financial Services (Bermuda) Investors Seek Up to $500K in Damages from SunTrust Bank Division, Truist Investment Services

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Jun 02, 2021, 16:41 ET

MIAMI, June 2, 2021 /PRNewswire/ -- Two investors from Bogota, Colombia are pursuing a Financial Industry Regulatory Authority (FINRA) arbitration claim against Truist Investment Services for the losses they suffered in Northstar Financial Services (Bermuda). The claimants, who are from the same family, had looked to the brokerage firm, which is affiliated with SunTrust Bank, to keep their assets safe.

As longtime SunTrust Bank clients with an account in Florida, the investors were not interested in taking on any undue risk and were mostly invested in bank products, including money markets. Yet, Truist Investment Services recommended that the claimants invest more than $125K in Northstar Financial Services (Bermuda).

That company is not solvent anymore, and the Bermuda government recently ordered it to undergo liquidation proceedings. At this point, it is unlikely that investors will recover their money without working with an experienced investor fraud law firm.

Our Northstar Financial Services (Bermuda) broker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing these South American investors in their FINRA arbitration fraud claim to recover damages.

The amount of $125K, which was the bulk of the claimants' account, is considered exceedingly large for an offshore investment. This caused their brokerage account to be overconcentrated in Northstar (Bermuda) products. The high commissions and fees earned by Truist Investment Services and its broker were likely incentives for making this unsuitable investment recommendation.

When the investors finally tried to get out of their investment last November, they were unable to leave.

Truist Investment Services clearly failed to properly supervise its broker, who was likely self-supervised. Under Florida civil codes, these two claimants would be considered "vulnerable adults" because of their age. As part of their FINRA arbitration claim, they are seeking damages for the abuse, neglect, and exploitation of elderly and disabled persons.

SSEK Law Firm is pursuing FINRA arbitration claims against Truist Investment Services and the other broker-dealers that unsuitably sold Northstar Financial Services (Bermuda) investments to their customers. We represent investors in the US and those living abroad who purchased their products through a broker-dealer based in this country.

To schedule your free case consultation contact:

Kirk Smith, [email protected]

US: (800) 259-9010

Mexico: (800) 283-3403

International via WhatsApp (text only): 713-227-2400

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SOURCE Shepherd Smith Edwards & Kantas LLP