Northstar Financial Services (Bermuda)
Greg Lindberg's $2 billion fraud scheme left Northstar Financial Services (Bermuda) in liquidation and thousands of investors unable to access their money. But the broker-dealers who sold these products may owe you a separate recovery through FINRA arbitration.
What Happened
Northstar Financial Services (Bermuda) Ltd. was established in 1998 and sold offshore annuity and investment products — including the Global Interest Accumulator and Global Advantage Plus — to investors worldwide through U.S. broker-dealers. For years it operated as a legitimate vehicle, often marketed to high-net-worth investors as a tax-advantaged offshore solution.
That changed in 2018, when American businessman Greg Lindberg acquired Northstar as part of his larger insurance empire. What followed was one of the largest insurance fraud schemes in U.S. history.
Lindberg systematically looted Northstar's investment assets, redirecting funds into his own affiliated companies — many of which were failing. As assets were drained, Northstar's ability to honor redemption requests collapsed. By May 2020, the company had $73 million in outstanding withdrawal requests against only $8.2 million in available cash. Redemptions were halted. Investors were frozen out.
In September 2020, the Bermuda Supreme Court appointed Joint Provisional Liquidators. A full winding-up order followed in March 2021. In November 2024, Lindberg admitted to a $2 billion fraud scheme and faces up to 30 years in prison.
Broker Liability
The Bermuda liquidation addresses claims against Northstar itself. But that is not the only avenue available to investors. The U.S. broker-dealers and financial advisors who recommended these products had independent obligations — and may have violated them.
Brokers who described Northstar products as safe, liquid, or low-risk misrepresented material facts. If your advisor told you this was a conservative or guaranteed investment, that may constitute actionable fraud.
FINRA rules require that any investment recommendation be suitable for the specific client's age, risk tolerance, and financial situation. Recommending illiquid offshore products to retirees or conservative investors was a clear suitability violation.
Broker-dealers are required to conduct reasonable due diligence before recommending any product. Firms that sold Northstar products after Lindberg's acquisition — or without investigating the offshore structure — failed that obligation.
Even if the individual broker acted improperly, the firm that employed and supervised them carries independent liability under FINRA rules. The firm is responsible for its registered representatives' recommendations.
Proof It Works
FINRA Award — March 2026 — Bixby Law PLLC
In March 2026, a three-member FINRA arbitration panel in Seattle ordered Truist Investment Services to pay $2,003,607 in compensatory damages to a Northstar variable account investor — plus $748,213.60 in legal fees and costs. The panel awarded the full amount of damages requested, including lost opportunity costs and investment returns.
Past results do not guarantee future outcomes. Every case is different.
Find Out If You Have a ClaimWho Sold These Products
Multiple U.S. broker-dealers recommended Northstar Financial Services (Bermuda) products to clients. A FINRA arbitration claim is filed against the selling firm, not Northstar itself. Known selling broker-dealers include:
Don't see your firm listed? Contact us — we've identified additional broker-dealers who sold these products.
Common Questions
Start Your Recovery
Michael Bixby obtained the first-ever FINRA arbitration award involving Northstar Bermuda. If a broker sold you these products, contact us for a free, confidential case evaluation. No fees or costs unless we recover for you.
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