NJ investment advisor admits stealing over $3M from clients

💰NJ man stole from victims
💰Investment advisor scammed ‘blank form’ control
💰Over $3M stolen for gambling, spending

A 42-year-old former broker and investment advisor has admitted to stealing more than $3 million from five New Jersey clients, U.S. Attorney Philip Sellinger announced.

Kenneth Welsh, of River Edge, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to four counts of wire fraud and one count of investment advisor fraud.

His victims were a married couple in North Caldwell, and three other individuals from Morganville, Fairfield and Whitehouse Station.

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Advisor scammed ‘blank form’ control

From July 2017 through March 2021, Welsh, was an investment advisor employed by a large brokerage firm, with multiple branches within New Jersey, including one in Fairfield.

His job included advising individuals about investing in securities.

Welsh used his position to get close with victims and gain their trust. He then had them sign blank forms, claiming they would be used for routine account maintenance.

Instead, Welsh used these forms to drain $2.6 million in funds via wire transfer from victims’ accounts to accounts under Welsh’s control, in the names of his relatives.

He spent the money on gambling debts and to buy high-end luxury items for himself, according to Sellinger.

Welsh also used distribution request forms, many forged or manipulated, to draw up cashier's checks for the remaining $268,000, which he used to buy gold.

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Welsh bought a $1 million, five-bedroom home in River Edge in 2019 during his scheme, according to public records.

He was arrested in October 2021 and sold the house last year.

Sentencing is set for March 26, 2025.

Each of the wire fraud counts 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 greatest.

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.

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