Kenneth Andrews Welsh of Fairfield, New Jersey, a stockbroker formerly registered with Wells Fargo Advisors LLC, is identified in a customer initiated investment related FINRA securities arbitration claim where the customer sought $1,857,001.59 in damages based upon allegations of unsuitable indexed annuity contracts for the customer when Welsh was associated with Wells Fargo Advisors. Financial Industry Regulatory Authority (FINRA) Arbitration No. 22-00311 (February 18, 2022). The claim alleges that Welsh effected unauthorized withdrawals from the customers’ accounts between 2018 and 2021.
FINRA Public Disclosure shows that Welsh has been identified in six more customer initiated investment related disputes concerning his activities while registered with securities broker-dealers, including Wells Fargo Advisors and Morgan Stanley. On September 16, 2021, a customer initiated investment related complaint regarding Welsh’s conduct was resolved for $21,355.27 and which alleged that Welsh made false statements to assure the customer of the merits of certain transactions made in their Wells Fargo securities account.
Welsh is also referenced in a customer initiated investment related written complaint on September 20, 2021, in which the customer requested $36,000.00 in damages for allegedly engaging in the misappropriation of the customer’s funds during the time that Welsh was employed by Morgan Stanley.
On December 15, 2021, another customer initiated investment related complaint involving Welsh’s activities was settled for $357,525.00 in damages based upon allegations that checks had been written from the customer’s account without the customer’s knowledge or consent while Welsh was registered with Wells Fargo Advisors. According to the complaint, the customer’s margin account had been established without authorization.
On December 21, 2021, a different customer initiated FINRA securities arbitration claim concerning Welsh’s conduct was resolved for $592,920.32 in damages for fraud and the theft of funds from the customer’s accounts when Welsh was associated with Wells Fargo Advisors.
Welsh is also the subject of another customer initiated FINRA securities arbitration claim which was settled for $25,000.00 in damages supported by allegations of fraud between 2013 and 2021 during the time that Welsh was employed by Wells Fargo Advisors.
Welsh has also been charged by Securities and Exchange Commission (SEC) with stealing investor funds. Department of Enforcement v. Kenneth A. Welsh. Civil Action No. 2:21-cv-19387 (Oct. 28, 2021). According to the Complaint, between January 2016 and January 2021, over 100 ACH transactions had been initiated by Welsh from customers’ accounts. The funds went to credit card accounts owned by Welsh’s parents and spouse.
The SEC alleges that Welsh caused checks to be drawn from customer accounts, but that he used these funds to pay for his personal expenses and to buy precious metals and gold coins. SEC alleges that the customers, some of who were not financially savvy, had not authorized any of Welsh’s activities. Welsh even allegedly arranged for securities to be sold or otherwise liquidated so that he could generate the cash to steal from their accounts. SEC alleges that Welsh violated Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and Securities Act of 1933 Section 17(a).
Welsh was registered with Wells Fargo Clearing Services between September 7, 2012, and July 8, 2021.