Broker Scott Reed Possibly Recommended Bad Investments To Wells Fargo Clients
The investment loss recovery lawyers at Soreide Law Group are investigating allegations of sales practice violations voiced by clients of Scott Reed (CRD#: 3007033, Scottsdale, Arizona). Apparently, Wells Fargo Clearing Services – the firm who he worked for from 2016 to 2020 – accepted his voluntary resignation amid allegations that without authorization, he recommended and even facilitated investment opportunities for Wells Fargo clients. Not only that, but three investors brought investment disputes in reference to Reed. Notably, these allegations indicate that Reed could have caused clients’ losses. Here’s more on the recent disputes.
Wells Fargo Parts Ways With Scott Reed Amid Allegations Of Selling Away
Apparently, in April of 2020, Scott Reed asked a Wells Fargo client to purchase investments that might not have been available through Wells Fargo. Known as “selling away,” private securities transactions involve a broker’s initiation of securities transactions unrelated to their employment role. Historically, some securities brokers’ private securities transactions have resulted in losses to investors because of fraud. It is unclear how clients were affected by Reed.
Wells Fargo Client Indicates That Reed’s Investment Recommendations Related To Outside Opportunities
Evidently, in March of 2020, a client of Wells Fargo Advisors challenged Scott Reed’s decision making process. The complaint shows that Reed was the client’s financial advisor at a time when he recommended investments. It seems that these investments were unprofitable or otherwise unsuitable. The firm contends that it did not offer the products that Reed recommended or purchased on behalf of the client. Apparently, this matter closed without resolution in April 2020.
Scott Reed Supposedly Invests Coastal Equities Client In The Wrong Securities
Evidently, Scott Reed held an employment relationship with Coastal Equities in Wilmington, Delaware between 2015 and 2016. Apparently, during that period, he allegedly recommended bad equities and energy securities to a Coastal Equities client. Notably, in the FINRA Arbitration Claim from December 2017, the client makes clear that “Mr. Reed recommended unsuitable investments.” The client also added that Reed “did not diversify their retirement portfolio.” With such large concentrations in the energy sector, the client could have incurred losses. For this reason, the client demands payment of $300,000 to offset losses.
FINRA BrokerCheck indicates that Scott Reed denies all allegations of misconduct.
Losses From Securities Broker Scott Reed?
Have you experienced losses by investing through broker Scott Reed? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of financial advisors and securities brokers like Reed.