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News

Commission Revokes License and Registration and Penalizes Mesa Man for Fraud

The Corporation Commission revoked the securities salesman registration and investment adviser representative license of Scott Wayne Reed of Mesa for fraudulently selling promissory notes and ordered him to pay $1,804,901 in restitution and a $50,000 administrative penalty.

The Corporation Commission found Reed sold at least $3.5 million of investments in unregistered, high-interest promissory notes issued by Pebblekick, Inc. and received $191,340 in commissions, which Reed concealed from the firm that employed him. The Commission found Reed engaged in “selling away,” an unethical and dishonest practice of selling investments his firm did not offer and had not approved for him to sell. 

The Corporation Commission also found Reed impeded the Securities Division's investigation by providing false, incomplete and misleading responses, and that he failed to timely disclose four liens the I.R.S. recorded against him for unpaid income taxes.

In settling this matter, Reed admits for purposes of this proceeding the Commission’s findings and agrees to the entry of the consent order.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S- 21132A-20-0370.

Arizona Corporation Commission

1200 W. Washington Street

Phoenix, AZ 85007

 

Corporations Division

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Phoenix, AZ 85007

 

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