Scott Reed, Formerly of First Financial Equity, Barred by FINRA Following Allegations He Participated in Unauthorized Private Securities Transactions

Reed is also facing regulatory action by the Arizona Corporation Commission.

Scott Reed (CRD#: 3007033) was previously registered as a broker and a financial adviser with First Financial Equity in Scottsdale, AZ, from April 2020 until December 2020. Previously, Reed was employed with Wells Fargo from 2016 until 2020. Reed was registered as a broker with Accelerated Capital Group, who has since been expelled by FINRA, from 2012 until 2015.

Reed has seven disclosures on his BrokerCheck report.

February 2021 Regulatory Judgment

• Status: Final
• Allegations: Without admitting or denying the findings, Reed consented to the sanction and to the entry of 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. 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 communicating with them orally, by email and text message about the company and encouraging them to invest. Reed also facilitated the transactions by, among other things, helping investors send or receive transfers of funds. Reed received selling compensation of $191,340 from the company for his role in soliciting and facilitating the investments. Reed also personally invested over $200,000 in the company.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Bar
• Registration Capacities Affected: All Capacities
• Duration: Indefinite
• Start Date: 2/19/2021

December 2020 Regulatory Judgment

• Status: Pending
• Initiated By: Arizona Corporation Commission
• Allegations: Selling away, sale of unregistered securities, fraud, failure to timely amend Form U-4.

April 2020 Employment Separation After Allegations

• Firm Name: Wells Fargo Clearing Services, LLC.
• Termination Type: Voluntary Resignation
• Allegations: Allegations that registered representative recommended and facilitated investment opportunities in investments sold away from and not offered by Wells Fargo Advisors.
• Broker Comment: Wells Fargo Advisors closed the internal review with no action.

April 2020 Investigation

• Initiated By: FINRA
• Description of Investigation: Investigation into the Form U05 disclosure by Wells Fargo indicating there were allegations that [the] registered representative recommended and facilitated investment opportunities in investments sold away from and not offered by Wells Fargo.

March 2020 Customer Dispute

• Status: Closed – No Action
• Allegations: Client complained that the financial advisor recommended an investment opportunity in a company not offered by Wells Fargo Advisors.
• Broker Comment: Client stated to advisor that there was no loss regarding the alleged investment. This claim was dropped by client and closed with no action by Wells Fargo Advisors.

December 2017 Customer Dispute

• Status: Pending
• Allegations: The customers claim Mr. Reed recommended unsuitable investments and did not diversify their retirement portfolio.
• Damage Amount Requested: $300,000.00
• Broker Comment: I am not named in the complaint at all.

May 2010 Customer Dispute

• Status: Denied
• Allegations: “Customer alleges that the registered representative made a ‘terrible’ recommendation.”
• Damage Amount Requested: $9,000.00

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Scott Reed. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.