A former broker in Bergen County admitted in federal court that he stole more than $3 million from five clients over a four-year period to cover gambling expenses and purchase high-end luxury items, officials with the U.S. Attorney’s Office said Wednesday.
Kenneth A. Welsh, 42, of River Edge pleaded guilty Wednesday to an indictment charging him with four counts of wire fraud and one count of investment advisor fraud, officials said. From July 2017 through March of 2021, prosecutors said Welsh misappropriated at least $3 million from five clients while working for a large brokerage firm.
Instead of responsibly managing client funds, officials said Welsh diverted client money from their brokerage accounts to accounts he controlled. Welsh had clients sign blank forms under the guise that they would be used for routine account maintenance when in reality they were used to transfer over millions of dollars to accounts in the names of Welsh’s relatives, authorities said in the federal indictment. Welsh used the stolen money to gamble and purchase high-end luxury items for himself, authorities said.
Officials did not state in the indictment what company Welsh worked for as a broker and did not detail what types of luxury items he purchased with the stolen money. Sentencing is scheduled for March 26, 2025, authorities said. An attorney for Welsh did not immediately return a request for comment Wednesday.
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