Scott Reed (CRD #: 3007033), a previously registered broker and investment adviser with Wells Fargo in Scottsdale, Arizona, has been barred by Wells Fargo following FINRA allegations that he participated in outside securities transactions. This is according to his BrokerCheck record, accessed on March 1, 2021.
On February 19, 2021, Scott Reed entered into an Acceptance, Waiver, and Consent agreement (AWC), in which he consented to the findings that he participated in private securities transactions totaling at least $3.5 million, without providing his firm with written notice or obtaining their approval. This activity allegedly took place from 2019 thru 2020. According to FINRA Rule 3280, brokers are not allowed to recommend securities outside of their member firm without notifying their firm in writing. If the broker will receive a commission, brokers also need firm approval.
The AWC alleges that Scott Reed solicited at least six individuals, including at least two Wells Fargo customers, to purchase securities issued by a software and web development company based in Pasadena, California. According to the AWC, Reed participated in $3.5 million-worth of transactions by providing potential investors with information about the company. He also allegedly facilitated the transactions by helping investors send or receive transfers of funds. In one case, Reed offered to personally guarantee half of an individual’s investment.
Scott Reed allegedly received $191,340 from the company for his role in soliciting and facilitating investments. Reed also invested $200,000 of his own money in the company.
As part of the AWC, Scott Reed consented to being barred indefinitely. You can read a copy of the AWC here.
On April 7, 2020, Scott Reed voluntarily resigned from Wells Fargo Clearing Services following allegations that he recommended and facilitated investments not offered by Wells Fargo.
Scott Reed’s Outside Businesses
Scott Reed’s detailed BrokerCheck report reveals the following outside business activities:
- SSR7 LLC
- Reed Private Wealth
If you have invested in these companies, please reach out to us immediately. We want to review your investments and evaluate your case for free. Call (877) 238-4175 or email email@example.com.
Scott Reed Investor Disputes
On December 15, 2020, the Arizona Corporation Commission initiated a regulatory action, alleging that Scott Reed had engaged in selling away, the sale of unregistered securities, and fraud.
On December 18, 2017, investors alleged that Scott Reed of First Financial Equity Corporation recommended unsuitable investments and failed to diversify their retirement portfolio. The investors are seeking $300,000; the dispute is pending.
Scott Reed has passed the Series 66 Uniform Combined State Law Examination, the Series 63 Uniform Securities Agent State Law Examination, the Securities Industry Essentials Examination, the Series 7 General Securities Representative Examination, the Series 10 General Securities Sales Supervisor – General Module Examination, the Series 9 General Securities Sales Supervisor – Options Module Examination, and the Series 24 General Securities Principal Examination.
Scott Reed has worked in the securities industry for 21 years and has worked at seven firms:
- First Financial Equity Corporation (CRD #: 16507)
- Wells Fargo Clearing Services (CRD #: 19616)
- Coastal Equities (CRD #: 23769)
- Accelerated Capital Group (CRD #: 41270)
- Meridian United Capital (CRD #: 122924)
- Fidelity Brokerage Services (CRD #: 7784)
- Ameritrade (CRD #: 36559)
If Scott Reed was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta. Call (877) 238-4175 or email firstname.lastname@example.org for a free case consultation with a securities attorney.