Javier Hernandez (CRD #2298668) Has 8 Disclosures on FINRA BrokerCheck

Javier Hernandez is currently registered with KCD Financial, Inc. According to his FINRA BrokerCheck report, his record includes regulatory events, customer disputes, an employment separation, and an ongoing investigation.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Action(s)

Javier Hernandez’s FINRA BrokerCheck report states that the National Association of Securities Dealers (NASD) filed a complaint on September 9, 1998. The complaint stated that Hernandez made misrepresentations and baseless performance predictions, effected unauthorized transactions, and failed to execute a customer’s sell order. BrokerCheck shows the matter was resolved on November 6, 2000, with a $5,000 fine, a 30-business-day suspension, and restitution of $3,375 plus interest.

His FINRA BrokerCheck report also reflects a separate NASD matter initiated on January 27, 1997. BrokerCheck states the case involved a failure to respond to an NASD request for an on-the-record interview under Rule 8210. The report lists a censure, a $2,500 fine, and a five-business-day suspension, with the decision and order dated March 25, 1999.

BrokerCheck lists one additional regulatory event in this category. It was initiated by the South Carolina Securities Division on May 20, 1998 and concluded with an order dated April 7, 1999 that denied registration.

Employment Separation

Javier Hernandez’s FINRA BrokerCheck report states that First Liberty Investment Group discharged him on May 13, 1999. BrokerCheck indicates the firm accused him of executing unauthorized trades in the accounts of two customers.

In a statement reported on BrokerCheck, Hernandez wrote that one customer said the customer gave orders to sell a stock and not to buy another stock. He wrote that the claim came after the stock declined and that the firm settled without his consent. He also wrote that a second customer made a similar claim after the account was down and that the firm settled that matter as well.

Investor Disputes / Customer Complaints

Javier Hernandez’s FINRA BrokerCheck report reflects a customer complaint received on April 29, 1999. The customer alleged unauthorized trades involving equity-OTC. BrokerCheck lists alleged damages of $14,000.00, and it shows the complaint was settled on May 6, 1999 for $14,000.00.

His BrokerCheck report also lists a second customer complaint received on May 26, 1999. The customer alleged unauthorized transactions that resulted in $56,000.00 in losses and involved equity listed (common & preferred stock). BrokerCheck shows the complaint was settled on June 15, 1999 for $29,000.00.

BrokerCheck lists one additional settled customer dispute in this category. It involved an unauthorized purchase and a reported loss of $8,406.00, and the report lists a settlement amount of $8,406.00.

Investigation

Javier Hernandez’s FINRA BrokerCheck report shows that FINRA issued a notice dated January 5, 2026. The report states that FINRA’s Department of Member Supervision is investigating to determine whether violations of federal securities laws or regulations, or FINRA or MSRB rules, have occurred. BrokerCheck marks the investigation as pending.

Rule Summary #1: FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)

FINRA Rule 2010 requires brokers and firms to observe high standards of commercial honor. Issues like unauthorized trading and misleading statements can raise questions about whether those standards were met.

Rule Summary #2: FINRA Rule 2020 (Use of Manipulative, Deceptive or Other Fraudulent Devices)

FINRA Rule 2020 prohibits effecting transactions by means of any manipulative, deceptive, or other fraudulent device. Claims involving misrepresentations or unauthorized transactions often relate to this type of prohibition.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on his FINRA BrokerCheck report, Javier Hernandez:

Is currently registered with KCD Financial, Inc.

Has passed the Securities Industry Essentials (SIE) exam. Javier Hernandez has passed Series 7. He has also passed Series 63.

Was previously registered with firms that include Cape Securities Inc. and Broad Street Securities, Inc.

Kurta Law Can Help

If you have worked with Javier Hernandez and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Securities Attorney | What is Securities Fraud?

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.