TRENTON, N.J. — A former investment advisor from Bergen County has admitted to stealing more than $3 million from five clients to fund his gambling and lavish lifestyle, federal prosecutors announced Wednesday.
Kenneth A. Welsh, 42, of River Edge, pleaded guilty in federal court to four counts of wire fraud and one count of investment advisor fraud before U.S. District Judge Robert Kirsch in Trenton. The charges stem from a years-long scheme to defraud clients while Welsh was employed by a large brokerage firm.
Prosecutors say that between July 2017 and March 2021, Welsh diverted funds from the brokerage accounts of five clients into accounts he controlled. Instead of managing their investments as entrusted, Welsh used the stolen money for personal expenses, including gambling and the purchase of luxury goods.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the financial gain or loss caused by the offense. The investment advisor fraud charge carries a potential five-year sentence and a $10,000 fine. Sentencing is scheduled for March 26, 2025.
The FBI, under the leadership of Acting Special Agent in Charge Nelson I. Delgado, led the investigation into Welsh’s activities. U.S. Attorney Philip R. Sellinger credited the agency for its work in bringing Welsh to justice.
The case highlights the vulnerability of clients to financial misconduct by trusted advisors.
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.