Last month, this blog reported that broker Scott Wayne Reed (CRD No. 3007033) had been barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”) for participating in private securities transactions totaling at least $3.5 million without providing prior written notice to his firm. Beginning in early 2019 and continuing until his termination from Wells Fargo in April 2020, Mr. Reed solicited at least six individuals, including at least two Wells Fargo customers, to invest in securities issued by Pebblekick, a software and web development company based in Pasadena, California.
Iorio Altamirano LLP has since learned that Mr. Reed has also solicited clients to invest in the following high risk and speculative investments:
- GWG “L Bonds”: Speculative, high risk, and illiquid “bonds” that are classified as an alternative investment. An L bond is an unrated life insurance bond that finances the purchase and premium payments of life insurance contracts bought in the secondary market. Brokers get a commission of 1 to 5% of the market price of the bond.