Scott Wayne Reed of Scottsdale, AZ, a stockbroker registered with Wells Fargo Clearing Services LLC, has been fined $50,000.00 and barred as a stockbroker by the state of Arizona because Reed failed to make regulatory disclosures and he engaged in private securities transactions. Letter of Acceptance, Waiver, and Consent No. S-21132A-20-0370 (March 24, 2022).
Reed has also been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Reed sold unauthorized investments, engaged in private securities transactions. Letter of Acceptance, Waiver, and Consent No. 2020066246901 (February 19, 2021).
According to the AWC, in 2019 through 2020, when he was registered with Wells Fargo, Reed engaged in private securities transactions without first providing written notice to Wells Fargo. FINRA states that Reed solicited six potential individuals to purchase notes issued by a software company. Reed had the individuals invest $3,500,000.00 in the company and received $191,340.00 in compensation for his efforts. Therefore, Reed violated FINRA Rules 2010 and 3280.
FINRA Public Disclosure shows that Reed has been referenced in four total customer initiated investment related disputes concerning Reed’s conduct while associated with securities broker dealers. On February 7, 2020, a FINRA securities arbitration claim involving Reed’s conduct was settled for $15,000.00 in damages based upon allegations that Reed made unsuitable recommendations of oil and gas investments and over-the-counter equities and had failed to diversify the customer’s holdings when Reed was associated with Coastal Equities Inc. FINRA Arbitration No. 17-03293.
Reed was also referenced in a complaint filed on March 23, 2020, in which the customer requested compensation based upon allegations that Reed engaged in private securities transactions during the time that Reed was associated with Wells Fargo Advisors LLC.
On September 15, 2021, another customer filed an investment related complaint involving Reed’s conduct seeking compensation based upon allegations that Reed engaged in private securities transactions and charged excessive commissions in connection with the sale of investments at Wells Fargo Advisors LLC.
Reed was associated with Wells Fargo Clearing Services LLC in Scottsdale, AZ, as a stockbroker from April of 2016 to April of 2020. On April 7, 2020, Wells Fargo Clearing Services LLC permitted Reed to resign based upon allegations that Reed engaged in private securities transactions. He was also associated with First Financial Equity Corporation in Scottsdale, AZ, as a stockbroker from April of 2020 to December of 2020.
