Scott Wayne Reed of Scottsdale, Arizona, a stockbroker formerly registered with First Financial Equity Corporation, is referenced in a customer initiated investment related written complaint on September 15, 2021, where the customer sought compensatory damages based upon accusations of the customer being recommended unapproved outside investments by Reed when he was associated with Wells Fargo Advisors. The complaint alleges that the customer experienced damages on The Pebblekick Inc., Ascensive Creator, and Curza Global. According to the complaint, Reed made several hundred thousand in undisclosed commissions between April of 2017 and April of 2020.
Reed has been identified in three additional customer initiated investment related disputes regarding allegations of his activities during the time that he was employed by securities broker dealers, including Coastal Equities, Wells Fargo Advisors, and Fidelity Brokerage Services LLC. FINRA Public Disclosure shows that a customer filed an investment related complaint involving Reed’s activities in which the customer requested $9,000.00 in damages supported by accusations of an inappropriate mutual fund recommendation during the time that Reed was registered with Fidelity Brokerage Services.
Reed is also identified in a customer initiated investment related arbitration claim which was settled for $15,000.00 in damages based upon accusations of unsuitable investment recommendations by Reed concerning oil and gas securities and over-the-counter equities while Reed was employed by Coastal Equities. FINRA Arbitration No. 17-03293 (February 7, 2020). According to the claim, the customer’s account was not diversified.
On March 23, 2020, another customer filed an investment related complaint regarding Reed’s conduct where the customer sought compensatory damages founded on allegations of Reed recommending investments in January 2020 that Wells Fargo Advisors did not approve or offer.
Reed has been barred from associating with any FINRA member in any capacity supported by findings of his involvement in $3,500,000.00 in private securities transactions when he was associated with Wells Fargo Advisors. Letter of Acceptance, Waiver, and Consent No. 2020066246901 (February 19, 2021).
According to the AWC, between 2019 and 2020, because of Reed, six investors committed to purchasing securities issued by a Pasadena, California-based web and software development company. The AWC states that the investments were purchased by customers away from Wells Fargo, but Reed was involved in those transactions. Investors were provided with investment materials from Reed. The stockbroker corresponded with customers about the investments and helped them make fund transfers. The regulator noted that one investor was told that half of their principal would be personally guaranteed by Reed. Reed’s solicitation of investments were rewarded with a $191,340.00 payment by the California company.
Reed did not tell Wells Fargo about his selling away activities and did not get written authorization to engage in private securities transactions. FINRA states that Reed violated FINRA Rules 2010 and 3280 for these reasons.
Reed voluntarily resigned from Wells Fargo Clearing Services on April 7, 2020, founded on allegations of him selling away. He was registered with First Financial Equity Corporation between April 7, 2020, and December 26, 2020.