Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Scott Reed (Reed) has been accused by clients of engaging in fraudulent investment activities including undisclosed outside business activities (OBAs) and private securities transactions. According to records kept by The Financial Industry Regulatory Authority (FINRA), Reed was employed by Wells Fargo Clearing Services, LLC (Wells Fargo) at the time of the activity. If you have been a victim of Reed’s alleged misconduct our firm may be able to assist you in recovering funds.
Reed has been subject to regulatory action by both FINRA and the State of Arizona. With respect to the FINRA action, the regulator found that Reed consented to sanctions and findings that he participated in private securities transactions totaling at least $3.5 million without providing prior written notice to or obtaining advanced approval from his member firm. Reed solicited individuals, including at least two firm customers, to invest in securities issued by a software and web development company believed to be Pebblekick, Inc. Reed participated in these investments away from the firm by providing written materials about the company to investors, and by communicating with them orally, by email and text message about the company and encouraging them to invest. Reed is alleged to have received selling compensation of $191,340 from the company for his role in soliciting and facilitating the investments. It was also claimed that Reed had his own personal financial interest in the company and personally invested over $200,000 in the company.