HOUSTON, May 4, 2021 /PRNewswire-HISPANIC PR WIRE/ — In his Financial Industry Regulatory Authority (FINRA) arbitration claim against Hancock Whitney Investment Services, Inc., a senior investor in Central America is seeking up to $5M in damages. The senior investor suffered losses when he invested $1.25M in Northstar Financial Services (Bermuda) at the recommendation of Hancock Whitney Investment Services broker, Robin Platt.
The claimant, a longtime Hancock Whitney Bank client, had mostly invested in bank products and kept his money in checking/savings accounts. In 2016, Platt recommended the Bermuda-based investment, which would go on to make up the majority of the retiree’s portfolio.
Our Northstar Financial Services (Bermuda) broker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this investor in his FINRA arbitration claim against Hancock Whitney Investment Services.
It is important to note that generally a variable annuity (VA) is considered a safe, fixed income alternative. However, this Bermuda-based product did not provide the same protections as US-based variable annuities, which made it a riskier proposition.
This VA, specifically, was highly unsuitable for him given his age and risk tolerance level. Now, after losing his entire principal, this claimant is alleging unsuitability, misrepresentations and omissions, negligence, failure to supervise, breach of contract, and breach of other duties after suffering significant investment losses.
Platt and other Hancock Whitney Investment Services registered representatives likely recommended and sold Northstar Financial Services (Bermuda) to other customers due to the fact that these investments paid:
- Higher commissions
- Bonuses
- Remunerations
Along with other kinds of incentives to brokers that were more than what they would have earned from recommending more conventional bank/annuity products.
Unfortunately, Northstar Financial Services (Bermuda) is no longer solvent and its owner, Greg Lindberg is in prison. After filing for bankruptcy protection last year, Northstar Financial Services (Bermuda) must liquidate.
SSEK Law Firm is representing a number of them in their FINRA arbitration cases against their broker-dealers, including a $500K customer dispute against J.P. Morgan Securities and another $500K investor claim against Truist Investment Services.
There are also other broker-dealers that sold Northstar Financial Services (Bermuda), including Bankoh Investment Services and Ocean Financial Services.
Contact us today if you believe that you suffered losses after investing in Northstar Financial Services (Bermuda) products.
Contact:
Kirk Smith
ksmith@sseklaw.com
Toll Free: 800-259-9010
Mexico Toll Free: 800-283-3403
WhatsApp International (Text Only): 713-224-2400
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SOURCE Shepherd Smith Edwards & Kantas LLP
