What You Need to Know
- The former broker violated securities laws by soliciting clients to invest in a company he had invested in, FINRA says.
The Financial Industry Regulatory Authority has barred a former Wells Fargo broker from association with any FINRA member in any capacity after he allegedly solicited clients to invest in a software and web development company that he had invested in, according to the regulator.
Wells Fargo declined to comment on Tuesday. Alan Baskin, an attorney based in Arizona representing Reed, did not immediately respond to a request for comment.
From April 2016 to April 2020, Reed was registered as a general securities representative, general securities principal and general securities sales supervisor through an association with Wells Fargo Clearing Services, according to FINRA.
On April 17, 2020, Wells Fargo filed a Form U5 reporting Reed’s voluntary termination from the firm while under internal review over allegations that he “recommended and facilitated investment opportunities in investments sold away from and not offered by” the firm, the FINRA letter said.
In the same Form U5 filing, Wells Fargo also reported a customer complaint that alleged Reed “recommended an investment opportunity in a company not offered by” Wells Fargo, according to FINRA.
Reed is no longer registered as a broker or RIA, according to his report on FINRA’s BrokerCheck website.
FINRA started investigating the matter after learning of the allegations reported in the Form U5, it said.