LOST MONEY IN GWG L BONDS? CLICK HERE TO LEARN MORE

Broker Misconduct Investigation: Scott Reed (Wells Fargo Clearing Services)

If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*

Need Legal Help? Contact Us. Call +1 (888) 997-9956
Updated on: January 5, 2026

National investment loss lawyers KlaymanToskes is investigating barred broker Scott Reed (CRD# 3007033) a/k/a Scott Wayne Reed, formerly of Wells Fargo Clearing Services and First Financial Equity Corporation.

According to FINRA BrokerCheck, broker Scott Reed, formerly of Wells Fargo Clearing Services,
Was permanently barred by FINRA in February 2021 for participating in at least $3.5M of undisclosed private securities transactions and receiving $191,340 in compensation.

Arizona regulators revoked his licenses in March 2022 and ordered $1,804,901 in restitution plus a $50,000 penalty (including findings of unregistered/unapproved sales and nondisclosure issues), and the SEC permanently barred him in December 2023 based on the Arizona order.

Reed also received an indefinite FINRA suspension in November 2023 for failing to comply with an arbitration award/settlement or respond to FINRA, and a customer dispute tied to over $2M in unapproved outside investments settled for $2.25M (Sept. 2021).

Investors that suffered losses with broker Scott Reed are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

Ex-Wells Fargo Broker Scott Reed Permanently Barred by FINRA & SEC

According to FINRA BrokerCheck, broker Scott Reed, formerly of Wells Fargo Clearing Services, was permanently barred by FINRA in February 2021 after findings that he participated in at least $3.5 million in undisclosed private securities transactions and received approximately $191,340 in compensation.

Regulators in Arizona later revoked Reed’s securities and advisory licenses in March 2022 and ordered $1,804,901 in restitution and a $50,000 administrative penalty, including findings involving unregistered or unapproved sales and alleged disclosure failures. In December 2023, the SEC also permanently barred Reed based on the Arizona order.

FINRA records further reflect that Reed was suspended indefinitely beginning in November 2023 for failing to comply with an arbitration award or settlement agreement (or for failing to provide requested information regarding compliance). Reed has also faced customer disputes, including one tied to more than $2 million in allegedly unapproved outside investments that settled for $2.25 million in September 2021.

Investment Losses with Broker Scott Reed?

Investment Losses with Broker Scott Reed?

Contact KlaymanToskes

Signs Investors Should Look Out For About Their Brokerage Accounts

As an investor, there are a few signs that you should look out for if you believe you may have a claim against your financial advisor. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:

  • You have substantial losses in your investment accounts
  • You received a call, email, or other communication from your broker’s supervisor or manager regarding your portfolio
  • Your broker misrepresented investment opportunities, or failed to disclose details about investments
  • You notice unauthorized transactions in your investment accounts
  • Your broker is not returning your calls or emails
  • You filed a complaint with your brokerage firm that has not been resolved
  • You see a mistake on your statement, or receive a fraudulent statement

Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.

Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.

If you suffered losses with broker Scott Reed, or have concerns regarding your investment portfolio at Wells Fargo Clearing Services, First Financial Equity Corporation, or with any other financial advisor or firm, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.