Feds Say NJ Investment Advisor Stole $2.8 Million from Clients
Authorities say a former broker and investment advisor from Bergen County has been arrested for allegedly stealing over $2.8 million from his clients.
41-year-old Kenneth A. Welsh of River Edge was charged with four counts of wire fraud and one count of investment advisor fraud, according to Acting U.S. Attorney Rachael Honig.
Honig's office says from July 2017 through March of this year, Welsh, who worked for a large brokerage firm, misappropriated at least $2.86 million from five clients. Welsh's scheme involved diverting money from their brokerage accounts to accounts that he controlled. He then used the money for gambling and to purchase high-end, luxury items for himself.
Each of the wire fraud counts carries up to 20 years in prison and a $250,000 fine. The investment adviser fraud count carries a maximum penalty of five years behind bars and a $10,000 fine.
Welsh is scheduled to appear before a judge sometime on Thursday.