SEC Charges Former Wells Fargo Advisor Kenneth Welsh With Misappropriating Nearly $3 Million
The Securities and Exchange Commission (SEC) has charged a former New Jersey-based Wells Fargo advisor with misappropriating nearly $3 million from clients to allegedly purchase gold coins and cover credit card debts. The SEC alleges that Kenneth Welsh misappropriated $2.86 million via 137 fraudulent transactions between January 2016 and January 2021. Welsh allegedly transferred client funds to third parties and accounts held in his wife’s and parents’ names to avoid detection by Wells Fargo’s compliance department.
The SEC’s complaint charges Welsh with violating antifraud provisions of the federal securities laws and seeks injunctive relief, disgorgement, as well as prejudgment interest. The complaint further alleges that Welsh instructed clients to sign a blank check or completed check authorization form prior to investing the funds in securities investments. However, Welsh instead utilized the money to pay for personal expenses. According to the Financial Industry Regulatory Authority (FINRA), Welsh worked at Wells Fargo from 2012 to 2021 after spending eight years with Morgan Stanley.
Investors who have suffered losses with Kenneth Welsh, or another financial advisor, may contact our office at (201) 771-1115 or info@gialawgroup.com for a free, confidential consultation to learn more about their legal rights. The attorneys at Giarrusso Law Group LLC have extensive experience with handling all manner of claims on behalf of investors who have been victimized by securities fraud or related misconduct.
