SEC Accuses Financial Advisor of Stealing Over $3M in Client Funds

Gold and Silver Bars

The Securities and Exchange Commission (SEC) charged a New Jersey-based financial advisor with stealing over $3 million in client funds last week.

Court documents indicate that Kenneth A. Welsh misappropriated millions of dollars of client funds to buy gold, silver, and other precious metals for himself. The SEC’s complaint also alleges that Welsh used client funds to pay off various family credit cards.

BrokerCheck Information

FINRA’s BrokerCheck tool shows that Welsh was most recently employed by Wells Fargo in Fairfield, New Jersey, a position he held since 2012. Previously, Welsh worked for Morgan Stanley for more than eight years.

Important Disclosures

Welsh has several disclosures on his Broker Check profile, most of which are related to the current SEC charges against him. One pending disclosure amounts to more than $1.85 million, a complaint that alleges that Welsh made 76 transactions over a 27 month period between 2018 and 2021. Another pending disclosure includes similar claims that Welsh misappropriated $225,000 of the client’s brokerage funds.

The case is currently pending in the United States District Court for the District of New Jersey. If you are a current or former client of Kenneth Welsh and suspect similar wrongdoing in your portfolio, please contact us for a confidential, no-cost consultation to determine your rights and options.

About Vernon Litigation Group

Vernon Litigation Group represents investors across the United States in various financial disputes, including securities and investment fraud, breach of fiduciary duty, FINRA arbitration, misappropriation of funds, and other similar claims.

Please contact us at 239-319-4434 to speak to a financial attorney today.

Related Posts
  • Did You Lose Money Investing In Stocks and Options With Recently Fired LPL Financial Advisor Richard Allen Ceffalio Jr? Read More
  • Vernon Litigation Group Files FINRA Arbitration claim against Ameriprise related to Melbourne Financial Advisor Scott Roslonowski Read More
  • Can I Trust a Financial Advisor? Read More