- June 7, 2022
- Cetera Advisors LLC
Xinxin Lu (CRD # 6270026) (aka Stella Lu) is a former Financial Adviser at Cetera Investment Services in Cupertino, California. Xinxin Lu was in the securities industry from 2013-2019 and was registered with Cetera Investment Services from 2015-2017.
According to publicly available records, an investors filed an arbitration claim against Cetera Investment Services, alleging that Xinxin Lu aka Stella Lu recommended that they invest in Beechwood Bermuda, an insurance/annuity product offered by Northstar Financial Services (Bermuda). Northstar (Bermuda) is now in receivership and the investor alleges that they lost $5 million.
THE PROBLEMS WITH NORTHSTAR FINANCIAL SERVICES (BERMUDA)
Northstar Financial Services (Bermuda) Ltd. operated out of the country of Bermuda, although its investment products were also available in other countries through broker-dealers in the U.S. and elsewhere. The company was acquired by Greg Lindberg’s Global Bankers Insurance Group several years ago.
Northstar Financial Services was a Segregated Accounts Company that was regulated by the Bermuda Monetary Authority. Northstar Financial Services promoted its fixed and variable annuities products by describing them as the ability to offer segregated account protection, liquidity terms, commitment periods of varying lengths, and the benefits of a Bermuda trust structure.
Among the investment products it offered were variable- and fixed-rate annuities. Product names included Global VIP Elite, Global Advantage Plus Series, Global Index Product, Global Advantage Select, and Global Interest Accumulator. These products were allegedly marketed to investors as low-risk investments that could offer tax benefits in excess of those typically available in the U.S., making them especially attractive to American investors. According to some investors, these products were likened to money market account equivalents, which are generally considered to be relatively conservative investments with high liquidity.
Northstar Financial Services (Bermuda) Ltd. has pursued chapter 15 bankruptcy and liquidation proceedings and is no longer solvent. Its owner, Greg Lindberg, is in prison and likely funneled the off-shore entity’s money into other companies he operated. In 2019, Lindberg was indicted on federal wire fraud and bribery charges, and he is currently serving in prison after his conviction in 2020.
A number of brokerage firms sold Northstar Financial Services (Bermuda) securities products, including the following:
- Bancwest Investment Services
- Bankoh Investment Services
- Bank of Hawaii
- Cetera Investment Services
- CommunityAmerica Financial Solutions
- East West Bank
- Hancock Whitney Investment Services
- J.P. Morgan Chase Co.
- Morgan Keegan Bank
- Ocean Financial Services
- Raymond James & Associates
- Raymond James Financial Services
- SunTrust Investment Services
- Truist Investment Services
- United Nations Federal Credit Union (UNFCU)
- Unionbanc Investment Services
Prior to selling any securities product to customers, brokerage firms have a regulatory obligation to conduct thorough due diligence to ensure that both the offering is appropriate for investors and the individuals involved in the offering are, among other things, law abiding citizens. Here, inadequate due diligence was conducted of this offshore investment and Greg Lindberg’s involvement in same. Instead, brokerage firms focused on the high commissions that could be earned by selling these products and sold them to retail customers as safe, income producing investment vehicles.
WE HELP INVESTORS RECOVER INVESTMENT LOSSES
The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (855) 453-8611 or by email at email@example.com.