I would suggest disabling Simple File Sharing on the target machine. Tools > Folder options > View tab, scroll to bottom and uncheck Simple File Sharing.
Try doing it like this:
psexec \\LOC-Server -u **DOMAIN**\AdminUser -p AdminPW cmd
Or, it could be due to:
psexec \\LOC-Server -u AdminUser -p AdminPW **cmd.exe**