Kenn Welsh, Wells Fargo Rep, Arrested by the Feds in New Jersey
Kenn Welsh, a broker and financial investment advisor formerly with Wells Fargo, was arrested on allegations of a fraudulent scheme in which he stole at least $2.86 million from clients to pay for his high end life-style. The Securities and Exchange Commission (“SEC”) and the U.S. Attorney’s Office Jersey each announced the filing of complaints against Kenneth Welsh in Federal Court in New Jersey on October 28, 2021.
Complaint Filed Against Kenn Welsh By the Securities and Exchange Commission
According to the complaint filed against Kenn Welsh, from January 2016 to January 2021, he transferred funds directly from his clients’ accounts to personal accounts. Several of the customers Kenn Welsh allegedly defrauded were elderly individuals. He used the confidential bank and personal information of his clients at Wells Fargo to initiate transfers of funds from their investment accounts into accounts in his name and in the names of his wife and parents. He would often sell securities in his clients’ accounts to ensure funds were available. According to the SEC’s complaint, “In total, Welsh made at least 123 such fraudulent ACH transfers to the Welsh Family Accounts during the Relevant Period.”
In another aspect to the fraudulent scheme, it is alleged that Kenneth Welsh fraudulently obtained at least 14 checks from clients’ accounts. Welsh had several methods for completing these fraudulent transactions. He would have the client sign a blank check authorization that he later filled in himself, he would provide a completed check authorization but misrepresent how the authorization would be used, or he would manually alter the payee line of a check.
Once in his accounts, Kenn Welsh used these funds for his own personal benefit. He paid for personal expenses such as paying for an automobile lease, paying down credit cards, and also to purchase gold coins and other precious metals.
SEC v. Kenn Welsh – Complaint
Kenneth Welsh Arrested in New Jersey
In addition to the Securities and exchange Commission’s case against former Wells Fargo broker Kenn Welsh, the United States Department of Justice has also filed a criminal complaint. Based on the criminal complaint filed by the U.S. Attorney’s Office, Kenneth Welsh is facing a maximum of 20 years in prison and a $250,000 fine for each count of wire fraud, and a maximum of five years in prison and a $10,000 fine for each count of investment advisor fraud. The SEC is separately seeking disgorgement of ill-gotten gains, civil penalties, and injunctive relief.
USA v. Kenneth Welsh – Complaint
Wells Fargo Terminated Kenn Welsh in June 2021
In June 2021, Wells Fargo terminated Kenneth Welsh and disclosed the following on his securities license, “allegations were made that Mr. Welsh may have misappropriated funds from Wells Fargo Clearing Services, LLC clients.” Following his termination from Wells Fargo, multiple former customers of Kenn Welsh began filing arbitration claims against Wells Frago in FINRA. As of November 1, 2021, there are currently three pending complaints on Kenn Welsh’s BrokerCheck report. One of these complaints seeks over $1.8 million from Wells Fargo. In this complaint, the customer alleged that Kenn Welsh withdrew over $1 million through 76 transactions over a 27 month period.