SEC Charges Former Wells Fargo Advisor Kenneth Welsh With Misappropriating Nearly $3 Million

Posted on November 2nd, 2021 at 1:30 PM
SEC Charges Former Wells Fargo Advisor Kenneth Welsh With Misappropriating Nearly $3 Million

From the Desk of Jim Eccleston at Eccleston Law:

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. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters. Those who had accounts with Welsh, or who have information regarding Welsh, should contact Eccleston Law LLC. 

 

Tags: eccleston, eccleston law, sec, wells fargo

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