Civil and Criminal Fraud Charges Filed against New Jersey Financial Advisor Kenneth Welsh
According to the Securities and Exchange Commission on October 28, the regulator charged former Wells Fargo Advisors broker Kenneth A. Welsh (CRD #4657872) with purportedly stealing almost $3 million from customers to pay his credit card debts and purchase gold coins and luxury items.
Kenneth A. Welsh, of Fairfield, NJ, purportedly stole $2.86 million through 137 transactions from January 2016 to January 2021, the SEC charged. He allegedly transferred money from his customers to third parties and accounts held in his wife’s and parents’ names by altering pre-signed checks to hide his alleged activities from the firm’s compliance department. According to the SEC, the transactions were reportedly not authorized by any of his clients or customers, some of whom were “elderly and financially unsophisticated.”
Welsh was reportedly discharged from Wells Fargo in June over allegations he had misappropriated funds. He currently has four pending customer disputes between April and August of this year, on his broker report. Allegations include misappropriated funds, and an alleged failure to fill a stock order as promised which was purportedly settled for $21,355 in September. Two alleged complaints in June reportedly seek $1.86 million and $225,000.
According to the SEC’s complaint, Welsh purportedly directed his customers to sign a blank check or gave the client a completed check authorization form but told the customer that the money was being used to purchase legitimate securities investments but instead he was allegedly keeping the funds for his own personal expenses.
A parallel criminal complaint was also filed from the U.S. Attorney’s Office for the District of New Jersey. The civil case reportedly charges Welsh with violations of the antifraud provisions of the federal securities laws and seeks injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.
According to his FINRA Broker report, Welsh was reportedly affiliated with the following firms during his 17-year career in the securities industry:
09/07/2012 – 07/08/2021, WELLS FARGO CLEARING SERVICES, LLC (CRD#:19616), FAIRFIELD, NJ
06/01/2009 – 10/05/2012, MORGAN STANLEY SMITH BARNEY (CRD#:149777), FAIRFIELD, NJ
04/02/2007 – 06/01/2009, MORGAN STANLEY & CO. INCORPORATED (CRD#:8209), FAIRFIELD, NJ
03/12/2004 – 04/02/2007, MORGAN STANLEY DW INC. (CRD#:7556), FAIRFIELD, NJ
Potential Lawsuits to Recover Financial Losses
When brokers violate securities laws, such as making unauthorized transactions or unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you have suffered losses investing with Kenneth Welsh, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information, please visit our website, www.whitesecuritieslaw.com.