Trenton, New Jersey. Federal prosecutors said Wednesday that a former Bergen County investment advisor has admitted to embezzling over $3 million from five clients to finance his gambling and extravagant lifestyle.
Before U.S. District Judge Robert Kirsch in Trenton, Kenneth A. Welsh, 42, of River Edge, entered a guilty plea to four counts of wire fraud and one count of investment advisor fraud. Welsh worked for a big brokerage firm and was charged with a multi-year plot to scam clients.
Welsh allegedly transferred money from five clients’ brokerage accounts into accounts under his control between July 2017 and March 2021, according to the prosecution. Welsh utilized the stolen funds for personal purposes, such as gambling and the acquisition of upscale goods, rather than handling their investments as entrusted.
The maximum penalty for each conviction of wire fraud is 20 years in prison and a fine of $250,000, which is equal to twice the amount of money gained or lost as a result of the offense. A $10,000 fine and a possible five-year imprisonment are associated with the investment advisor fraud allegation. The date of sentencing is March 26, 2025.
The FBI conducted the investigation into Welsh’s actions under the direction of Acting Special Agent in Charge Nelson I. Delgado. Philip R. Sellinger, the U.S. Attorney, gave the FBI praise for its efforts in prosecuting Welsh.
The case emphasizes how susceptible people are to financial misdeeds by reliable advisors.
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