Investors who purchased products from Northstar Financial Services (Bermuda), Ltd. are facing a financial nightmare. Once marketed as safe, tax-efficient vehicles for conservative savers, these investments have collapsed, leaving thousands of individuals with frozen assets and significant losses.
With the company now in liquidation and its owner, Greg Lindberg, facing federal prison time for fraud and bribery, the outlook for recovering money directly from Northstar is grim. Current estimates suggest that investors may receive pennies on the dollar from the liquidation trust. However, there is another path to recovery. The U.S.-based brokerage firms that recommended these high-risk offshore products to retail investors may be held liable for their failure to conduct proper due diligence.
If you or someone you know has suffered significant investment losses working with a brokerage firm that recommended Northstar Financial Services (Bermuda), don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in securities fraud cases and will help to guide you through the process with a free, confidential consultation to determine whether your losses are the result of actionable misconduct.
What Happened to Northstar Financial Services (Bermuda)?
Northstar Financial Services (Bermuda) was established in 1990 and spent decades operating as a niche provider of insurance and annuity products. For many years, it was considered a stable option for investors seeking tax advantages through an offshore structure.
However, the company’s trajectory changed drastically in 2018 when it was acquired by Global Bankers, a conglomerate owned by North Carolina billionaire Greg Lindberg.
Following the acquisition, allegations emerged that Lindberg began diverting Northstar’s assets to fund his other business ventures. In 2020, Lindberg was convicted of wire fraud and bribery related to attempts to influence an elected official. As news of his criminal activities spread, investors rused to liquidate their accounts, but Northstar could not meet the demand.
In March 2021, the Supreme Court of Bermuda issued a Winding Up Order, forcing the company into bankruptcy and appointing Joint Provisional Liquidators from Deloitte Ltd. to oversee the dismantling of the firm.
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Why Are Investors Recovering “Pennies on the Dollar”?
Since filing for bankruptcy, Northstar has been undergoing a complex liquidation process. Unfortunately, the financial reality for investors is stark.
- Insolvency: The company owes significantly more to creditors and investors than it holds in assets.
- Segregated vs. Non-Segregated: Recovery depends heavily on account structure. While some “variable” account holders may have segregated assets, those with “fixed” accounts are finding that their funds were commingled or diverted, leaving them as unsecured creditors.
- Estimated Payout: Initial estimates from the liquidation trust suggested investors might receive no more than 13 cents on the dollar. Recent court rulings in late 2025 suggest that for many fixed-account holders, the recovery could be even lower—potentially “almost nothing.”
With over 1,800 claims totaling more than $400 million, the liquidation process cannot make investors whole.
Can I Recover Losses From the Broker Who Sold Northstar?
While Northstar itself is insolvent, the American brokerage firms that sold these products are not. Financial advisors and brokerage firms have a legal and regulatory obligation under FINRA rules to conduct adequate due diligence on any investment they recommend. They must also ensure that a recommendation is suitable for the client’s specific risk tolerance and financial goals.
Investors are filing arbitration claims alleging that brokers failed in these duties by:
- Ignoring Red Flags: Brokers allegedly continued to sell Northstar products even after Lindberg’s legal troubles and the company’s liquidity issues became public knowledge.
- Misrepresenting Risk: Advisors often marketed Northstar products as “safe” or “conservative” alternatives to CDs, failing to explain that they were high-risk offshore instruments lacking U.S. insurance protections.
- Breaching Fiduciary Duty: By prioritizing high commissions over client safety, advisors may have committed investment fraud.
If your advisor misrepresented Northstar or failed to disclose the risks associated with Greg Lindberg, you may be able to recover your losses from the brokerage firm itself.
Our lawyers are nationwide leaders in investment fraud cases.
Which Firms and Products Are Involved?
Many U.S.-based brokerage firms recommended Northstar products to their clients. If you worked with any of the following firms, you may have a claim for recovery:
- Bankoh Investment Services (Bank of Hawaii)
- Raymond James & Associates
- Truist Investment Services
- Cetera Investment Services
- J.P. Morgan Chase Co.
- Suntrust Investment Services
- Bancwest Investment Services
- Hancock Whitney Investment Services
Impacted Northstar Financial Offerings
Investors in the following products have reported significant losses:
- Global Advantage Series (Fixed, Plus, Select, III, V)
- Global VIP (Elite, Variable)
- Global Interest Accumulato
- Global Index Product / Protect
- Met Global Asset Portfolio
- Met Universal Life
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How Meyer Wilson Werning Helps Northstar Investors
The collapse of Northstar Financial Services (Bermuda) shows the devastating consequences of brokerage firms failing to supervise their advisors and vet the products on their shelves.
At Meyer Wilson Werning, we are currently representing investors who have lost millions in Northstar products. We help victims pursue recovery through arbitration, a dispute resolution process that is often faster and more efficient than traditional court litigation.
If you lost money in Northstar, do not wait for the liquidation process to conclude. Contact us today for a free, confidential consultation to discuss your rights and potential for recovery.
Frequently Asked Questions
Why did Northstar Financial Services (Bermuda) collapse?
The collapse is directly tied to the company’s owner, Greg Lindberg, who was convicted of bribery and fraud. His legal issues raised liquidity concerns, leading to a “run on the bank” that Northstar could not cover, forcing it into liquidation in 2021.
How much money will I get back from the Northstar liquidation?
Direct recovery from Northstar is expected to be minimal. Estimates suggest investors may receive 13 cents on the dollar or less, particularly those with “fixed” accounts whose assets were not properly segregated.
Why are U.S. brokers liable for an offshore company’s failure?
U.S. brokers have a duty to research the products they sell (“due diligence”) and only recommend suitable investments. If a broker sold Northstar as a “safe” investment while ignoring red flags about Lindberg or the lack of U.S. insurance protections, the brokerage firm can be held liable for the resulting losses.
Is there a deadline to file a claim against my broker?
Yes. Securities claims are subject to strict statutes of limitations and FINRA eligibility rules. If you wait too long, you may be forever barred from recovering your losses. It is critical to speak with an attorney immediately.
Recovering Losses Caused by Investment Misconduct.
