Bergen County Investment Advisor Pleads Guilty to Stealing Over $3 Million from Clients

Kenneth A. Welsh admitted to misappropriating funds from clients to fund gambling and luxury purchases, facing decades in prison.

Kenneth A. Welsh, 42, of River Edge, New Jersey, pleaded guilty in Trenton federal court to charges of wire fraud and investment advisor fraud. The former broker and investment advisor admitted to stealing more than $3 million from five clients between July 2017 and March 2021, according to U.S. Attorney Philip R. Sellinger.

Details of the Fraud:

While employed by a large brokerage firm, Welsh used his position to gain access to clients’ funds. Instead of managing the money responsibly, he diverted funds from clients’ brokerage accounts into accounts he controlled. Welsh used the stolen funds to finance gambling activities and purchase high-end luxury items.

Legal Penalties:

• Wire Fraud: Each of the four counts carries a maximum sentence of 20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense.
• Investment Advisor Fraud: This charge carries a maximum sentence of five years in prison and a $10,000 fine or twice the gross gain or loss.

Sentencing is scheduled for March 26, 2025, before U.S. District Judge Robert Kirsch.

Investigation and Prosecution:

The FBI, under Acting Special Agent in Charge Nelson I. Delgado, conducted the investigation that led to Welsh’s guilty plea. Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark is leading the prosecution.

This case underscores the severe consequences for financial professionals who abuse client trust for personal gain.