The Rosca Scarlato LLC law firm attorneys are currently investigating former broker Scott Reed, also known as Scott Wayne Reed, for allegedly participating in private securities transactions totaling at least $3.5 million without providing prior written notice to his firm according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), under review by attorney Alan Rosca.
Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm and his colleagues are investigating ex broker Scott Reed for allegedly participating in private securities transactions totaling approximately $3.5 million. Investors who are concerned about their investments may contact attorney Rosca or his colleagues for a free, no-obligation consultation and discussion of potential options, or to provide any useful information. Call 888-998-0530, via email at arosca@rscounsel.law or through the contact form on this webpage.
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Scott Reed Was Sanctioned by FINRA
FINRA started an investigation in connection to allegation reported in a Form U5 filed on April 17, 2020, as alleged in the AWC.
The AWC further alleges former Wells Fargo broker Scott Reed allegedly solicited six individuals, including at least two Wells Fargo customers to invest in securities issued by a software and web development company based in Pasadena, California.
Furthermore, Reed allegedly participated in at least $3.5 million in these investments away from his firm, in addition to communicating with investors verbally, by email, and via text message encouraging them to invest, as stated in the AWC.
Reed also allegedly helped investors send and/or receive transfer of funds, the AWC states. He reportedly received $191,340 in compensation for his role in soliciting and facilitating investments for the software and web development company. In addition, Reed allegedly invested over $200,000 in the company.
As a result of Reed’s alleged failure to provide Wells Fargo with prior notice for his participation in privates securities transaction, he accepted a sanction that included a bar from associating with any FINRA member firm in all capacities.
Scott Reed signed the AWC accepting and consenting to FINRA’s findings, without admitting or denying the findings, and solely for the purposes of the proceeding brought by or on behalf of FINRA, prior to a hearing and without an adjudication of any issue of law or fact.
The Arizona Corporation Commission Investigating Scott W. Reed
In December 2020, the Arizona Corporation Commission filed a notice of opportunity for hearing involving Scott Wayne Reed on allegations of selling away, sale of unregistered securities, fraud, and failure to timely amend to Form U-4.
The Complaint further alleges Reed failed to timely disclose four tax liens, in addition to allegedly selling away from his brokerage firm by offering at least $3.5 million of investments in short-term, high-interest notes issued by Pebblekick. Furthermore, Reed also allegedly provided false, incomplete and misleading response during the Division’s investigation, as alleged in the complaint.
Scott Wayne Reed Has Multiple Customer Disputes Disclosed on His Brokercheck
Scott Reed’s FINRA Brokercheck page reports a customer dispute filed in September 2021, alleging Scott Reed had a client invest over $2 million in unapproved outside investments, mainly Curza Global, Ascensive Creator, and The Pebblekick, Inc. The damages are unspecified and as of the date of this article the dispute is reported as pending.
In 2017 a customer dispute was filed alleging Reed sold them several unsuitable investments and did not diversify their retirement portfolio. In addition, the customer allegedly lost significant portion of their investments in companies identified as Aequitas, Staffing 360, and Aeon/Kadmon. The customer was seeking $300,000 for the alleged damages, as reported on his Brokercheck page, and in February 2020 the dispute settled for $15,000.
In March 2020, another customer filed a dispute alleging Scott Wayne Reed recommended an investment opportunity in a company not offered by Wells Fargo Advisors. The customer requested unspecified damages and according to broker’s comment, the claim was “dropped” by the client and closed with no action by Wells Fargo.
Reed was Employed with FINRA for 21 Years
According to FINRA’s Brokercheck page, he joined the securities industry in 1999 and switched employers seven times.
His most recent employment history includes First Financial Equity Corporation located in Scottsdale, Arizona from April 2020 to December 2020. As well as Wells Fargo Clearing Services located in Scottsdale, Arizona from April 2016 until April 2020.
Reed allegedly voluntarily resigned from Wells Fargo on allegations that he recommended and facilitated investment opportunities in investments sold away and not offered by the firm, as reported on his Brokercheck page.
Broker Scott Reed was also employed with Coastal Equities located in Wilmington, Delaware from November 2015 until April 2016.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Potential Options for Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or broker misconduct and is currently investigating conduct related to broker Scott Wayne Reed’s alleged participation in private securities transactions.
The firm takes cases of this type on a contingency fee basis; no fees or costs if no recovery; firm advances costs and investor is required to pay only if there is a recovery. Attorney Alan Rosca, a seasoned securities lawyer, has represented thousands of victimized investors across the country and around the world in cases arising out of investment-related misconduct.
Investors who are concerned about their investment with Scott Reed may contact Alan Rosca for a free, no obligation case evaluation, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
