He stole client cash for gold coins. The SEC just shut him out for good.
A former Wells Fargo adviser who misappropriated client funds to buy gold coins and cover personal expenses has been barred from the industry.
The Securities and Exchange Commission on Feb. 13 issued an order barring Kenneth A. Welsh from association with any broker, dealer, investment adviser or related financial entity, capping a years-long enforcement saga that included a criminal conviction and prison sentence.
Welsh, 44, of River Edge, N.J., served as a registered representative and investment adviser representative at Wells Fargo Clearing Services, LLC from September 2012 until his termination in June 2021. He previously held FINRA Series 7, 31 and 66 licenses.
The Commission’s complaint, filed on Oct. 28, 2021, alleged Welsh misappropriated customer and client account funds to pay funds owed on credit card accounts held in the name of his own wife and parents, which he used for his personal benefit. He also caused numerous checks to be fraudulently drawn on his clients’ and customer’s accounts, which he secretly used to buy gold coins and other precious metals and to pay for his personal expenses.
The scheme drew parallel civil and criminal actions.
On Sept. 23, 2025, a judgment was entered by consent against Welsh, permanently enjoining him from future violations of antifraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940, in Securities and Exchange Commission v. Welsh, 21-cv-19387, in the United States District Court for the District of New Jersey.
On the criminal front, Welsh pled guilty on Nov. 20, 2024 to wire fraud and investment adviser fraud charges in United States v. Welsh, 23 cr. 932, before the same court, based on his orchestrating and conducting a scheme to defraud investors. On July 28, 2025, Welsh was sentenced to, among other things, 44 months’ imprisonment.
The SEC’s administrative order bars Welsh from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent or nationally recognized statistical rating organization. Welsh consented to the entry of the order through an Offer of Settlement which the Commission determined to accept.
Any future reapplication for association by Welsh will be subject to the applicable laws and regulations governing the reentry process and may be conditioned upon compliance with the Commission’s order and payment of disgorgement, civil penalties, arbitration awards or restitution orders.
Source: investmentnews.com
