By: Najla Alexander
NJ Attorney authorities announced that a former broker and investment advisor admitted stealing more than $3 million from five clients.
U.S. Attorney Philip R. Sellinger stated that Kenneth A. Welsh, 42, of River Edge, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an indictment charging him with four counts of wire fraud and one count of investment advisor fraud.
According to documents filed in this case:
From July 2017 through March 2021, officials say, Welsh, an investment advisor employed by a large brokerage firm, misappropriated at least $3 million from five clients.
According to U.S. Attorney Sellinger, 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.
Welsh then used the unlawfully obtained money to fund his gambling and to purchase high-end, luxury items for himself, NJ Attorney officials said.
NJ Attorney officials said that each wire fraud count 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 greater.
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, NJ Attorney officials stated.
Officials said sentencing is scheduled for March 26, 2025