National investor fraud law firm KlaymanToskes is investigating former Wells Fargo financial advisor Kenneth Welsh (“Ken Welsh Wells Fargo Investigation”) after allegations that Kenneth Welsh may have stolen funds from Wells Fargo investors. Our investigation is in light of an SEC Complaint and U.S. Attorney’s Complaint filed last month.
Prior to Kenneth Welsh’s termination from Wells Fargo in July 2021, an investor’s attorney notified Wells Fargo of 76 withdrawals from the investor’s account over a 27 month period. These withdrawals totaled over $1.8 million dollars.
Another investor’s attorney also notified Wells Fargo of similar issues. The other attorney notified Wells Fargo of altered checks and payments and transfers from the investor’s accounts leading to an unspecified amount of missing funds.
Finally, about two weeks after Kenneth Welsh was discharged from Wells Fargo, the brokerage firm disclosed to FINRA that an investor’s attorney notified Wells Fargo that $225,000 were stolen by Kenneth Walsh.
Former Wells Fargo Financial Advisor Kenneth Welsh (Fairfield, NJ) has since been arrested under allegations that he stole almost $3 million dollars from his clients. According to the US Attorney’s Office for the District of New Jersey, from July 2017 through March 2021, Welsh misappropriated at least $2.86 million from five clients.
Welsh allegedly perpetrated a scheme to defraud the five clients by diverting money from their brokerage accounts to accounts under his control. Kenneth Welsh then used the unlawfully obtained money to fund his gambling and to purchase high-end, luxury items for himself.
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, whichever is greatest.
The investment adviser 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, whichever is greatest.
According to the FBI pursuant to a U.S. Attorney’s Complaint, from July 2017 to March 2021, Kenneth Welsh allegedly fraudulently obtained $2,865,134 from 5 clients of his brokerage firm. According to BrokerCheck, Welsh was registered with Wells Fargo Clearing Services during this time period.
Details about the 5 victims include:
Welsh allegedly used two methods to perpetuate his fraudulent scheme.
First, he allegedly initiated 123 fraudulent ACH transfers that caused the transfer of approximately $2,596,394 from the Victims’ accounts at “Brokerage Firm 1” to the Welsh Family Accounts. Welsh then utilized the funds to gamble and fund extravagant expenses.
Second, Welsh fraudulently submitted authorizations to transfer funds that caused 14 cashier’s checks totaling approximately $158,740 to be drawn against the relevant victim’s brokerage account.
The cashier’s checks were made out to a New Jersey-based business dealing in coins, gold and other precious metals.
In a parallel case, the Securities and Exchange Commission (“SEC”) has also charged Kenneth Welsh for stealing almost $3 million dollars from several clients through fraudulent transactions.
It is alleged that he used the funds to secretly purchase “luxury goods” and “precious metals” and “pay for his personal expenses.”
According to FINRA BrokerCheck, Kenneth Welsh was registered as a broker as follows:
Former customers of ex-Wells Fargo financial advisor Kenneth Welsh with losses exceeding $100,000, and who may have information relating to the manner in which the financial advisor handled their accounts, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $220 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq.