As a seasoned financial analyst and legal expert with over a decade of experience, I’ve seen my fair share of cases where financial advisors have crossed the line. The recent termination of Les Miles (CRD# 5157562) from First Heartland Capital is one such case that should raise red flags for investors.
According to FINRA records, Miles was fired by First Heartland Capital in May 2024 for allegedly failing to disclose his roles in outside business activities, which is a violation of firm policy. This is a serious allegation that could have significant consequences for both Miles and his clients.
Investors need to be aware of the potential risks associated with working with financial advisors who engage in unapproved outside business activities. These activities can create conflicts of interest and may even lead to fraud or other misconduct. As Warren Buffett once said, “Risk comes from not knowing what you’re doing.”
The Financial Advisor’s Background and Broker Dealer
Les Miles has been in the securities industry for 17 years and is currently registered with Vanderbilt Securities in Starkville, Mississippi. Prior to joining Vanderbilt, he was registered with First Heartland Capital from 2018 to 2024. Miles also runs his own tax service, Miles Tax Service, which he started in 1973.
While Miles holds several securities licenses and is a licensed CMA, it’s important to note that he has had one disclosure on his record – the termination from First Heartland Capital. Investors should always review an advisor’s background and disciplinary history before working with them.
Understanding FINRA Rule 3270
FINRA Rule 3270 prohibits registered representatives from engaging in outside business activities without prior written notice to their member firm. This rule is in place to help prevent conflicts of interest and ensure that advisors are acting in the best interests of their clients.
By allegedly failing to disclose his outside business activities to First Heartland Capital, Miles may have violated this important rule. It’s crucial for investors to understand the rules and regulations that govern financial advisors to help protect themselves from potential misconduct.
Consequences and Lessons Learned
The consequences for violating FINRA rules can be severe, including fines, suspensions, and even permanent barring from the securities industry. In Miles’ case, the full extent of the consequences is not yet known, but his termination from First Heartland Capital is a significant red flag.
Investors can learn several lessons from this case, including:
- Always research a financial advisor’s background and disciplinary history before working with them
- Be aware of the rules and regulations that govern financial advisors, including FINRA Rule 3270
- If you suspect misconduct, report it to the proper authorities
It’s worth noting that one in five financial advisors have a misconduct citation on their record, according to a study by the Harvard Business School. This highlights the importance of due diligence when choosing an advisor to work with.
As an expert in both finance and law, I understand the complex intersections between these two fields and the impact that misconduct can have on investors. By staying informed and vigilant, investors can help protect themselves and their financial futures.
