News Tip

Bergen County Investment Advisor Charged with Multi-Million Dollar Fraud Scheme

Kenneth A. Welsh indicted on multiple counts, including wire and investment advisor fraud, for allegedly embezzling over $3 million from clients.

Kenneth A. Welsh, a 42-year-old former broker from River Edge, New Jersey, faces serious charges for allegedly defrauding clients of over $3 million, U.S. Attorney Philip R. Sellinger revealed.

In a shocking development for the financial community in New Jersey, Kenneth A. Welsh, formerly a respected investment advisor, has been indicted on charges of executing a fraudulent scheme against his clients. 

The indictment, announced by U.S. Attorney Philip R. Sellinger, includes four counts of wire fraud and one count of investment advisor fraud. Welsh, accused of abusing his trusted position, allegedly diverted substantial funds from client accounts to his own over a span of four years, from July 2017 to March 2021.

Special agents of the FBI, under the leadership of Special Agent in Charge James E. Dennehy, conducted the thorough investigation that led to Welsh's indictment. This case highlights the critical need for vigilance and integrity within the financial advisory sector. 

U.S. Attorney Sellinger emphasized the importance of trust between advisors and their clients, stating, "Investors need to know that the advice they are getting from their financial advisors is sound, and that they can trust them to do the right thing with their hard-earned money."

Each wire fraud count against Welsh carries a potential maximum penalty of 20 years in prison and a $250,000 fine, or double the gross gain or loss from the offense. The investment advisor fraud count is similarly severe, with a potential maximum penalty of five years in prison and a $10,000 fine, or double the gross gain or loss from the offense.

The case is being prosecuted by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark. While the charges are severe, it is important to remember that they are accusations, and Welsh is presumed innocent unless and until proven guilty.

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