Erez Law recently filed a FINRA arbitration against Truist Investment Services, Inc. (fka Suntrust Investment Services, Inc.) related to Northstar Financial Services (Bermuda) investment losses.
Their customers allege that Manuel Fernandez (CRD #3079976), who was a registered representative of Truist Investment Services, Inc. in Coral Gables, Florida, since 2003.
The Erez Law clients, who were long-standing clients of the firm, alleges the following in the newly filed FINRA claim:
The clients were interested in establishing U.S. based bank and investment accounts in order to safeguard their capital in a highly regulated and stable banking and investment system. The clients were generally risk averse and were looking to preserve their capital and generate a modest return.
Erez Law alleges that the broker recommended the clients invest in Northstar Financial Services Ltd. Global Advantage V and Global Advantage Select. It is alleged that the Northstar Global Advantage V investment paid a meager guaranteed level of interest of 2.40% over five years. The Northstar Global Advantage Select investment that the broker solicited paid a meager level of interest of 1%.
Erez Law alleges that the client was not seeking a high level of return and was never told that he was subject to a risk of losing his capital by investing in the high risk and unsuitable investments.
According to the claim, the firm and broker failed to adequately disclose to the clients that there was a risk that his principal would not be returned to them. Amongst other things, the firm and broker failed to adequately disclose to the clients that they recommended an offshore investment that lacked the protections attendant to U.S.-based investments. Neither the firm nor the broker disclosed in any meaningful manner to the clients that their capital was at risk at all due to a potential failure of Northstar Financial Services Ltd.
Additionally, it is alleged that the broker recommended the clients make a large investment in Northstar Financial Services Ltd. This high risk and unsuitable investment strategy only served to further increase the risks to which the clients were unknowingly exposed. It is alleged that one possible explanation for the firm and the broker’s solicitation of Northstar Financial Services Ltd. is the high level of commissions for the sale of the investments the broker may have received.
Erez Law alleges that to avoid pursuing legal action, the broker did assured the clients that the lack of liquidity or access to their funds was temporary, that they will eventually recover their capital and that the firm was actively working on their behalf to recover their investment. None of these representations were truthful and were designed to stall the clients from pursuing legal action.
Additional Customer Complaints
Regrettably, this is not an isolated incident. The firm and the broker have been actively selling Northstar investments to investors that have now come to learn that they may have lost most or all of their investment.
Manual Fernandez has been the subject of four customer complaints, dating from 2020 to 2022, according to his CRD report:
August 2022. “Client alleges unsuitable recommendations.” The customer is seeking $1 million in damages in this pending complaint.
January 2022. “Client alleges investment was unsuitable.” The customer sought $576,000 in damages, and the case was settled for $288,750.
October 2021. “Customer alleges unsuitable recommendation.” The customer sought $5,000 in damages, and the case was settled for $138,600.
October 2020. “Clients allege that representative made an unsuitable recommendation.” The customer sought $1,000,000 in damages, and the case was settled for $300,000.
How to File a Claim Against Manuel Fernandez
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
"*" indicates required fields
