Hidden among the sea of financial advisors and stock brokers, stories unfold that remind us of the financial world’s precarious balance: the case of securities broker Leslie Howard Kern, operating under the alias Les H. Kern, is one to keep an eye on. Kern, having established a working relationship with D.H. Hill Securities, LLLP in Wilmington, NC from 2016, and simultaneously with D.H. Hill Advisors Inc. based in Texas, has recently come under scrutiny. It seems his investment advice may have caused considerable losses for his clients. Now, he faces accusations of sales practice violations, which has led to multiple investor disputes. Kern’s once opaque record has now been highlighted and made available for all to see via his public-facing CRD number: 1140180.
A History of Investor Disputes
Interestingly, on May 30, 2023, a client of D.H. Hill Securities rattled Kern’s world by filing an allegation under FINRA Arbitration No. 23-01539. The case? Kern had allegedly misrepresented information, failed at due diligence, and steered the client down the wrong investment path. The fallout? Potential losses on asset-backed bonds for the investor, who is now seeking $50,000 in compensation, with the case pending resolution.
Accusations of Fiduciary Breach
As if that wasn’t enough, another D.H. Hill Securities client alleged fiduciary breach by Kern on February 28, 2023, further thickening the plot. This case, filed under FINRA Arbitration No. 23-00462, contended that Kern not only made unsuitable investment recommendations, but straight-up breached his fiduciary duties and fed his clients falsities. The damage? More asset-backed bonds taking a hit and a client seeking a hefty sum of $100,000 in compensation. The case currently holds its breath as it awaits further proceedings.
Breach of Contract?
Investor disputes don’t end there. Yet another case, under FINRA Arbitration No. 22-02112, saw Kern accused of breaking a contract, dispensing unfavorable investment advice, and misrepresenting crucial details. This time around, the investor claims the damage extended not just to asset-backed bonds but also to the realm of real estate securities. However, this case found closure on November 23, 2022, when D.H. Hill Securities agreed to pay $7,500 in damages.
Kern’s run-ins with disputed financial advice precede his time at D.H. Hill Securities. Back in his days with Sigma Financial Corporation, Kern faced allegations under NASD Arbitration No. 03-01038. The issue? Misrepresentation of a variable universal life policy and an unsuitable 1035 exchange. Sigma Financial Corporation opted for settlement on February 18, 2003, compensating the client $160,500—a significant payout, but perhaps the only way to manage an unmanageable Mendelian box of financial uncertainties.
Kern, and the brokerage firms he has associated with over his career, maintain their innocence against these allegations. Yet, the seeds of doubt have been sown. If you’ve felt the sting of investment loss due to his dealings, now would be a good time to contemplate recourse. Irrespective of the outcome of these cases, it underlines the importance of working with a trusted financial advisor, underscoring the need for stringent regulation in the financial industry.