Representing two separate securities broker-dealers, Neal Robb and Bryce Cullinane of Keesal, Young & Logan have been defending claims brought by public investors stemming from their investments in products issued by Northstar Financial Services (Bermuda) Ltd (“Northstar”).
In 2018, Northstar was purchased by BMX Holdings Bermuda Ltd. (“BMX”). BMX was wholly owned by a North Carolina insurance magnate named Greg Lindberg. On March 18, 2019, Mr. Lindberg was indicted on charges of attempting to bribe a North Carolina Department of Insurance Commissioner. Mr. Lindberg was subsequently tried in February 2020, and, on March 5, 2020, a federal jury convicted Mr. Lindberg of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds. According to the liquidators from Deloitte who were later charged with unraveling Mr. Lindberg’s fraud: “Following Mr. Lindberg’s conviction in March 2020, the Bermuda Monetary Authority [“BMA”] received a number of complaints from Northstar Financial Services (Bermuda)’s policyholders regarding unpaid surrender requests . . . [and] the BMA became increasingly concerned about the solvency status” of Northstar. On September 18, 2020, the BMA “presented a winding-up petition” to the Court in Bermuda. In December 2020, Northstar and affiliated entities filed for Chapter 15 bankruptcy protection in the Southern District of New York. On March 26, 2021 Deloitte was appointed to oversee the winding up of Northstar.
Numerous claims have been filed by public investors against the securities broker-dealers who brokered their purchases of Northstar products. Invoking FINRA Rule 12206, Mr. Robb and Mr. Cullinane recently and successfully moved to dismiss three separate actions filed by public investors regarding their Northstar annuity investments (Case Nos. 21-01278, 21-02788, and 21-01701). The arbitrators in all three matters held that the FINRA eligibility rule barred the claims at issue and so the cases were dismissed.
-Keesal, Young & Logan Securities Litigation Group