Articles Tagged with staffing 360

Scott Wayne Reed (“Agent Reed”), of Scottsdale, Arizona, has been engaging in various misconduct in customer accounts for years now. Most recently, earlier this year Wells Fargo customer alleged that Agent Reed solicited him to invest in “an investment opportunity in a company not offered by Wells Fargo Advisors”, Reed broker-dealer at the time. Upon information and belief, Reed tried to solicit several customers to invest in outside business activities sponsored by Hollywood producers. This “selling away” activity led to Reed’s departure from Wells Fargo on April 7, 2020.

Several of Agent Reed’s customers have complained that he sold them unsuitable investments in private placements, oil and gas investments, hedge funds, and mutual funds and over-concentrated their accounts in private placements. In 2017, elderly clients of Reed filed a complaint against Reed’s previous brokerage firms, Accelerated Capital Group (“ACG”) which is now out of business, and Coastal Equities, and later adding him personally to the complaint, for selling them several unsuitable investments. Included in these investments were various Staffing 360 issuances, Aeon Multi-Opportunity Fund, which became Kadmon, and Aequitas, which ended up being a Ponzi scheme. The clients lost their entire investment in Aequitas. They lost between 92% to 99% of their investments in Staffing 360 and lost 70% of their investments in Aeon/Kadmon. Reed sold these investments to his clients even after there were red flags that these companies were completely failing and drowning in debt.

Agent Reed has bounced around several brokerage firms, and has also worked as a registered investment advisor. From 1999-2001, he was registered with Ameritrade. His longest tenure was at Fidelity from 2001 through July 2010. He had brief stints at Strategic Advisors, Inc. and Meridian United Capital before joining Accelerated Capital Group from 2010 through 2015. Agent Reed was registered with Coastal Equities for only five months then joined Wells Fargo from April 2016 through April 2020. While his CRD Report states that he “voluntarily resigned” from Wells Fargo, the explanation details that his resignation came while he was under investigation for selling away. He has been registered with First Financial Equity Corporation since April 2020. Reed was also a dually registered RIA with Gentry Wealth Management from July 2010 through April 2016, which became Ashton Thomas Financial in 2015. According to his FINRA BrokerCheck Report, Mr. Reed operates as “Reed Private Wealth”.

Stoltmann Law Offices is pursuing investment losses for customers who were sold investments in Staffing 360. Staffing 360 Solutions, Inc. (“Staffing 360”) started as a scam, and still is nothing more. Originally, the company was “Golden Fork Corporation”, a South African catering company that was organized in the State of Nevada in December 22, 2009. In 2011, Golden Fork reported to the SEC that it did not have any revenue, yet for whatever reason, in February 2012, TRIG Special Purpose 1, LLC purchased Golden Fork, and the following month the company changed its name to “Staffing 360 Solutions”. According to its website, Staffing 360 acquires domestic and international staffing organizations in the United States and United Kingdom targeting the finance and accounting, administrative, engineering and IT industries. It became publicly traded on the NASDAQ on February 22, 2013, but continued to make private offerings. Staffing 360 made a nominal Form D private offering of $1.75 million in November 2013, with $1.35 million sold at the time. Accelerated Capital Group, which is now out of business, was the placement agent for Staffing 360’s private offerings. Even when it went public, Staffing 360 was already drowning in debt and continued to report a net loss each quarter.

As of November 30, 2013, Staffing 360 reported that it had accumulated $5.5 million in debt, had a working capital of negative $2.5 million, and reported a net loss of $1.8 million for the previous six-months. Its 10-Q report for the end of 2013 was essentially a cry for help, explaining the desperate need to raise money to keep the company viable. Staffing 360 continued to sell PIPE offerings and convertible bonds as a last-ditch effort to raise equity. It financials only got worse. By April 2014, Staffing 360 reported $7 million in debt, and negative $5.1 million in working capital. This means that within just months, Staffing 360’s negative working capital doubled and its debt increased by 50%. Brokers continued to sell Staffing 360 to their clients despite these horrific financials.

Staffing 360 is currently being publicly traded on the NASDAQ (STAF) for pennies. Clients who invested in Staffing 360 when it was a private investment have lost between 90% and 99% of their initial investment.

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