NEWARK, N.J. – A former broker and investment advisor was indicted for stealing more than $3 million from five clients, U.S. Attorney Philip R. Sellinger announced today.
Kenneth A. Welsh, 42, of River Edge, New Jersey was indicted by a federal grand jury on Nov. 15, 2023, on four counts of wire fraud and one count of investment advisor fraud. He will be arraigned at a date to be determined.
“We put our faith in several occupations during the course of our lives because we don't necessarily have the expertise they do, such as doctors, lawyers and investment advisors,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Some of those professionals violate that trust, and we allege that's what Welsh did when he stole millions from his clients. Our laws protect the general public from fraudsters, and the FBI Newark is responsible for bringing these criminals to justice.”
According to documents filed in this case:
From July 2017 through March 2021, Welsh, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated at least $3 million from five clients. Welsh, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud the five clients by diverting money from their brokerage accounts to accounts under his control.
Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The investment advisor fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.