FINRA Bars Ex-Wells Fargo Broker Scott W. Reed

By February 24, 2021 Stock Broker

FINRA has permanently barred former Wells Fargo Advisors broker Scott. W. Reed for convincing his customers to invest millions in a private software company without the firm’s approval, according to a FINRA settlement order.

The FINRA order states that between early 2019 until April 2020, Scott W. Reed solicited investments in an unidentified Pasadena, California-based software and web development company. Reed, who was based in Scottsdale, Arizona, raised at least $3.5 million in the securities sales. The securities Reed sold were notes issued by the company to raise capital for its ongoing operations and to repay investors with 15% interest.

According to Reed’s FINRA BrokerCheck Report:

“The findings stated that Reed solicited individuals, including at least two firm customers, to invest in securities issued by a software and web development company. Reed participated in these investments away from the firm by providing written materials about the company to investors, and by communicated with them orally, but email and test message about the company and encouraging them to invest.”

Reed received $191,340 in compensation from the company for his role in soliciting and facilitating investments.

FINRA Rule 3280 prohibits brokers from participating “in any manner in a private securities transaction” without first notifying their firms.

If you believe that you may have suffered financial losses due to the misconduct of a financial professional, we may be able to help. Our lawyers will review your investments, analyze your specific situation, and provide you with our opinion as to whether or not you may have a viable claim, free of charge. Please contact us to discuss your potential claim.