Did DH Hill Advisor Les Kern Recommend GWG L Bonds?

Kingwood, Texas financial advisor Les Kern (CRD# 1038728) has received multiple investor complaints alleging his conduct resulted in five- or six-figure damages. Public records filed with a US bankruptcy court in Texas, meanwhile, list at least one current or former customer of Mr. Kern as creditor for an investment in GWG L bonds. The records describe an investment of $75,000. Financial Industry Regulatory Authority records show that Mr. Kern is a broker and an investment advisor with DH Hill Securities.

Mr. Kern’s BrokerCheck report discloses four investor complaints. The most recent, filed in May 2023, alleges that he misrepresented and recommended an unsuitable investment in asset-backed debt, and that he conducted inadequate due diligence. The pending complaint alleges damages of $50,000.

An earlier investor complaint, filed in February 2023, alleges that as a representative of DH Hill Securities, he breached his fiduciary duty, made misrepresentations of material facts, and recommended an unsuitable asset-backed debt product. The pending complaint alleges damages of $100,000.

In identical statements included with both pending complaints’ disclosures, Mr. Kern defended himself against the allegations. “The Firm denies all allegations of wrongdoing in connection with this matter,” the statements read. “All investments were completely suitable based on information provided by the client, and the material risks and features of the investments were fully and accurately disclosed to the client.”

A third investor complaint, filed in September 2022, alleged he breached contract and misrepresented material facts in connection with unsuitable investment recommendations. In November 2022 the complaint reached a settlement of $7,500. A statement included with the complaint’s disclosure describes the firm’s denial of the allegations and description of the investments as suitable, asserting that the settlement was “a business decision… to avoid the costs and distraction of further litigation.”

A fourth investor complaint, filed in 2003, alleged that as a representative of Sigma Financial Corporation, he misrepresented material facts and made unsuitable recommendations. In 2004 the complaint reached a settlement of $160,500.

According to the Financial Industry Regulatory Authority, Les Kern holds 39 years of securities industry experience. Based in Kingwood, Texas, he has been a broker and an investment advisor with DH Hill Securities since 2016. His past registrations include Center Street Securities (2015), Landolt Securities (2012-2015), Allied Beacon Partners (2011), Alternative Wealth Strategies (2009-2011), Planmember Securities Corporation (2007-2009), Next Financial Group (2007), Coordinated Capital Securities (2006-2007), and Sigma Financial Corporation (2001-2006). He is licensed in Florida, Louisiana, Michigan, Missouri, North Carolina, and South Carolina. (Information current as of June 22, 2023.)

Carlson Law has represented at least nine investors in claims against their financial advisors for investments in GWG Holdings Inc. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.