KENNETH ANDREWS WELSH (KENNETH A WELSH, KENNETH WELSH) CRD#: 4657872, a former broker/investment advisor with Wells Fargo Clearing Services, LLC, in Fairfield, New Jersey, was arrested October 28, 2021, at his home in River Edge, New Jersey, for allegedly misappropriating more than $2.8 million from five clients to pay for his gambling and to buy personal luxury items, according to an article in InvestmentNews. According to the US Attorney’s Office, allegedly from July 2017 through March 2021, KENNETH A WELSH misappropriated the money by diverting funds from the clients’ brokerage accounts to accounts he controlled.

The US Attorney’s Office said KENNETH A WELSH is facing a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain from the purported offense, whichever is greatest, for each of the wire fraud counts, as well as a maximum of five years in prison and a $10,000 fine, or twice the gain, for the investment advisor fraud count. According to the article in InvestmentNews, Welsh faces four counts of wire fraud and one case of investment advisor fraud.

According to FINRA’s BrokerCheck, KENNETH A WELSH, was in the securities industry for 17 years and had been listed with 4 firms.  He has 6 disclosures on his FINRA CRD report. One of those disclosures is an “Employment Separation after Allegations” from Wells Fargo Clearing Services, LLC. on June 17, 2021, discharging Welsh due to, “Allegations were made that Mr. Welsh may have misappropriated funds from Wells Fargo Clearing Services, LLC clients.” Welsh was with Wells Fargo since 2012.

Welsh has 4 “Customer Disputes” on his BrokerCheck report.  One was settled and 3 are pending. A pending dispute filed against Welsh on June 11, 2021, alleges, “Client’s attorney complains that monies were withdrawn from her brokerage account without her authorization in 76 transactions over a 27 month period. (12/1/2018-3/1/2021).” The damages requested are $1,857,001.59.

There is also a civil case filed against, KENNETH A WELSH by the Securities and Exchange Commission (SEC) charging him with misappropriating client funds. The SEC alleges that Welsh made at least 137 fraudulent transactions and used the funds to allegedly buy luxury goods, purchase gold coins and other precious metals, and make electronic fund transfers to himself. The SEC has accused Welsh of misappropriating at least $2.86 million from several clients, including senior citizens, according to a complaint filed in the U.S. District Court for the District of New Jersey.

If you or a loved one suffered losses due to the actions or recommendations of the former Wells Fargo Clearing Services, LLC of Fairfield, New Jersey, broker/financial advisor KENNETH A WELSH, contact Soreide Law Group and speak at no cost to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.