HOUSTON, April 27, 2021 / PRNewswire-HISPANIC PR WIRE / – A retired couple from Mexico ask until $ 500,000 plus interest and fees from JP Morgan Securities, LLC on losses incurred while investing in a Northstar Financial Services (Bermuda) variable annuity. Because the carrier, Northstar Bermuda, is located off Bermuda, the policy that investors bought was not protected in the same way as those sold by carriers based in the United States.
The plaintiffs now allege the following: misrepresentation and omissions, inappropriate recommendations, lack of supervision, breach of contract, over-concentration, negligence and gross negligence and breach of fiduciary duty, and other violations which resulted in significant loss of investment .
Shepherd Smith Edwards and Kantas (SSEK law firm on investorlawyers.com) represent these Mexican investors in their case against JP Morgan Securities. The arbitration hearing of the Financial Sector Regulatory Authority (FINRA) will take place at Houston, Texas.
These senior investors specifically visited Texas to open a bank account in the United States. They wanted the protection of their assets against Mexico fluctuating currency that was negatively affected by government and economic instability.
While it was reasonable for their broker JP Morgan Securities to recommend investing in a variable annuity – generally a safe and appropriate investment for most retail investors looking for capital protection – it was not appropriate. to recommend a variable annuity from Northstar Bermuda.
The fact that it was an offshore carrier automatically placed applicants at undue risk.
According to lawyer for the law firm SSEK, Luis J. Acevedo-Bengoechea, “The people of Latin America bring their assets to invest in the United States in search of stability. It is reprehensible for a licensed financial advisor to recommend a product held abroad when reasonable US investments are available. “
Northstar Financial Services (Bermuda) offered variable and fixed rate annuity investment products to investors, many of whom were attracted to these products because of the tax benefits offered in Bermuda.
Law firm SSEK is investigating similar complaints filed by clients of Ocean Financial Services, Bankoh Investment Services, JP Morgan Securities, Truist Investment Services and other brokers who may have inappropriately recommended these products to their clients. clients.
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SOURCE Shepherd Smith Edwards & Kantas LLP