David A. Noyes Sued Over Alternative Investments

Scott Lindsay Reed of Indianapolis Indiana a stockbroker registered with David A. Noyes Company is referenced in a customer initiated investment related arbitration claim which was settled for $395,000.00 in damages supported by allegations that (1) false or misleading statements and omissions had been made to the customers concerning the terms of non-traded real estate investment trust and private placements sold to them (2) Reed neglected to undertake due diligence on alternative investments or the customers’ investor profiles prior to making recommendations (3) customers were placed into inappropriate and unsuitable investments and (4) David A. Noyes Co. failed to supervise Reed’s alternative investment sales. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-01179 (June 12, 2019).

Reed’s alternative investment sales. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-01179 (June 12, 2019).

FINRA Public Disclosure confirms that Reed is referenced in eight more customer initiated investment related disputes pertaining to accusations of his violative conduct while employed with David A. Noyes Co. A customer filed an investment related arbitration claim involving Reed’s conduct in which the customer requested $350,000.00 in damages founded on allegations that unfounded statements had been made to the customer concerning the risks associated with private placement investments; and Reed placed the customer in alternative investments which were not suitable for the customer. FINRA Arbitration No. 17-02836 (Oct. 27, 2017).

Another customer filed an investment related arbitration claim concerning Reed’s activities where the customer sought $379,245.00 in damages based upon accusations that unsuitable alternative investments had been sold to the customer; and misrepresentations were made by Reed in regard to those investments. FINRA Arbitration No. 17-03301 (Dec. 8, 2017). Reed is subject of a customer initiated investment related arbitration claim in which the customer requested $1,219,034.00 in damages supported by allegations that he invested the customer’s assets in alternative investments despite the customers not having been accredited investors; Reed lied to the customers about those investments; and Reed’s investment transactions lacked supervision on David A. Noyes’ part. FINRA Arbitration No. 18-00246 (Jan. 22, 2018).

Subsequently, a customer filed an investment related arbitration claim regarding Reed’s conduct where the customer sought $367,000.00 in damages founded on accusations including mismanagement of the customer’s account; and unsuitable and unsupervised trades being executed by Reed, who the customers alleged to have maintained an improper financial interest in the customers’ investment purchases. FINRA Arbitration No. 18-00843 (Mar. 1, 2018). Another customer initiated investment related arbitration claim involving Reed’s activities was resolved for $70,000.00 in damages based upon allegations that sales of Digonex and BRS private equity products failed to be suitable for the customer given the customer’s financial circumstances; and the securities broker dealer failed to oversee the Digonex and BRS trades placed in the customer’s account. FINRA Arbitration No. 17-02646 (Nov. 26, 2018).

An additional customer filed an investment related arbitration claim concerning Reed’s activities in which the customer requested $268,000.00 in damages supported by accusations that Reed had a conflict of interest with regard to private placements sold to the customer resulting in Reed failing to do proper due diligence on the investments; and the private placements sold to the customer were inappropriate given the customer’s financial circumstances or objectives for investing. FINRA Arbitration No. 18-01307 (Apr. 16, 2018).

Reed’s employment with David A. Noyes Company has been terminated as of October 21, 2016. Since October 6, 2016, Reed has been employed by FS Investment Solutions LLC.