Senior Citizens Were Among Former Fairfield, NJ Financial Advisor’s Alleged Victims
Kenneth Andrews Welsh, an ex-Wells Fargo Clearing Services broker, is now facing Securities and Exchange Commission (SEC) charges accusing him of misappropriating at least $2.86 million from brokerage firm customers and advisory clients.
Allegedly the financial advisor used victims’ money (including senior citizens) to pay credit card bills and buy precious metals, including gold coins.
Welsh, a former registered broker and investment advisor who worked out of a Wells Fargo branch in Fairfield, New York, was fired by the broker-dealer in June 2021 following the misappropriation allegations. As of October 2021, he is also the subject of pending customer disputes seeking damages of over $2.M and is facing parallel criminal charges.
Our securities fraud attorneys are speaking with customers of former Wells Fargo broker Kenneth Welsh who suffered losses that may have been due to his alleged fraud and negligence. Contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today so that we can help you explore your legal options.
Prosecutors File Criminal Fraud Case Against Kenneth Welsh
According to the SEC, from January 2016 to January 2021, Welsh moved money from customers’ and clients’ accounts to pay off credit card balances that were under the names of his parents and wife.
He allegedly caused checks to be fraudulently drawn from customer and client accounts and made at least 137 transactions. He then used the money he stole to purchase precious metals, such as gold coins, as well as luxury items. Welsh is accused of making electronic fund transfers to himself.
The U.S. Attorney’s Office for the District of New Jersey has filed parallel criminal charges against Welsh. He was arrested and charged with investment advisor fraud and multiple counts of wire fraud. If convicted, Welsh could be facing decades in prison.
Ex-Wells Fargo Broker Accused of Broker Fraud, Theft, and Unauthorized Trading
There have been several disclosures on Kenneth Welsh’s BrokerCheck over the years that claim that the broker acted negligently when managing their investment portfolios. Below are the most recent investor claims and events on Welsh’s BrokerCheck record:
- 10/2021: SEC alleges over $2.86M in fraudulent misappropriation transactions made by Welsh. None of these transactions were knowingly authorized by his clients or customers, some of whom were elderly and financially unsophisticated.
- 8/2021: For a stock order that was not filed despite the claimant’s request, this case was settled for more than $21K.
- 6/2021: Alleging theft of funds, this customer is seeking $225K in damages.
- 6/2021: Wells Fargo fired Welsh.
- 6/2021: This claimant is requesting nearly $1.9M in damages. The customer contends that during 75 transactions that occurred over 27-months, Welsh took money without her authorization.
- 4/2021: This investor is alleging fraud and theft.
During his 17 years in the industry, Kenneth Walsh worked at four firms in Fairfield, New Jersey. He was at Wells Fargo Clearing Services from 2012 to 2021. Before that he was a Morgan Stanley Smith Barney broker and before that he was registered with Morgan Stanley & Co. and Morgan Stanley DW.
Financial Firms and Their Duty To Supervise
Broker-dealers must properly supervise their financial advisors and their customers’ accounts to make sure that misappropriation and other misconduct don’t lead to investment losses. Financial firms can be held liable if their failure to supervise enables customers and clients to lose money.
Is a Securities Firm Liable for the Actions of Its Brokers?
Experienced Broker Misconduct Law Firm
SSEK Law Firm has recovered many millions of dollars on behalf of investors and customers of broker-dealers. If you sustained losses while working with former Wells Fargo broker Kenneth Welsh, or any other financial adviser with that firm, call our experienced investment fraud lawyers at (800) 259-9010 today.