Did you lose money investing with Scott Reed (CRD# 3007033)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Scott Reed. If you suffered losses investing with Scott Reed, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of March 14, 2023, Scott Reed’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
4 Customer Disputes
2 Regulatory Events
1 Investigation
1 Employment Separation After Allegations
February 19, 2021 – An AWC was issued in which Reed was barred from association with any FINRA member in all capacities. 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. (FINRA Case #2020066246901)
Current and Previous Registrations
04/07/2020 – 12/26/2020 FIRST FINANCIAL EQUITY CORPORATION (CRD#:16507) SCOTTSDALE, AZ
04/11/2016 – 04/17/2020 WELLS FARGO CLEARING SERVICES, LLC (CRD#:19616) SCOTTSDALE, AZ
11/10/2015 – 04/13/2016 COASTAL EQUITIES, INC. (CRD#:23769) WILMINGTON, DE
02/21/2012 – 11/11/2015 ACCELERATED CAPITAL GROUP (CRD#:41270) SCOTTSDALE, AZ
FINRA expelled the firm on 11/26/2019
11/02/2010 – 02/21/2012 MERIDIAN UNITED CAPITAL, LLC (CRD#:122924) SCOTTSDALE, AZ
02/14/2001 – 07/12/2010 FIDELITY BROKERAGE SERVICES LLC (CRD#:7784) SCOTTSDALE, AZ
07/19/1999 – 01/24/2001 AMERITRADE (CRD#:36559) BELLEVUE, NE
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Scott Reed and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
