DH HILL SECURITIES Lawsuit

Soreide Law Group has filed a FINRA arbitration on behalf of our client (Claimant) against:

DH HILL SECURITIES, LLP (Respondent)

The Claimant resides in North Carolina and claims to have limited investment experience.  The Claimant, according to the lawsuit wanted investments that would not be high-risk as nears retirement.  The lawsuit states that the Claimant relied upon the DH HILL SECURITIES’ financial advisor, Leslie Kern, to provide him with suitable investments that met his needs and goals. Leslie Kern has not been named in this lawsuit.

According to the lawsuit, two investments which were allegedly described by DH HILL SECURITIES’, financial advisor, Leslie Kern, as guaranteed to return principal at maturity plus interest, were GWG and a non-traded REIT, Lightstone. The Claimant invested $12,000 into a GWG bond investment. The lawsuit alleges that the Claimant was told the principal was safe and that he would receive principal back at maturity. In April of 2022, GWG declared bankruptcy putting the Claimant’s $12,000 investment in jeopardy. The second investment was approximately $22,000 in the non-traded REIT, Lightstone. Lightstone has stopped paying dividends and there is no market to redeem shares.

The lawsuit alleges that as a result of these alleged recommendations by Leslie Kern of D.H. HILL SECURITIES, the Claimant has suffered damages of approximately $34,000.  The lawsuit is alleging against the Respondent, DH HILL SECURITIES: negligence, breach of fiduciary duty, negligent supervision, breach of contract, and violations of NASD and NYSE rules. It is anticipated the Respondent will deny all allegations.

FINRA’s rules require firms which solicit bonds and bond funds to ensure that their representatives understand and inform their clients about the risks of the products they offer. Broker/dealers or financial advisors who may have recommended and sold GWG L Bonds to their clients without first disclosing the high-risk nature of these bonds may be liable.  Many investors were retired and elderly who invested their irreplaceable life savings. GWG reports that L Bonds were sold by a seller network made up of approximately 145 brokerage firms.

Soreide Law Group is currently handling several GWG L Bond loss cases due to various financial advisors and broker/dealers.  If you were recommended purchasing GWG L Bonds or other high-risk products by DH HILL SECURITIES and you have suffered financial losses, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment through a FINRA arbitration at:  888-760-6552.
Soreide Law Group works on a contingency fee basis, no cost to you if no recovery, and represents our clients nationwide before FINRA.