Ex-Wells Fargo adviser charged with client fraud

Ex-Wells Fargo adviser charged with client fraud

Admin 20 mins ago Banking

Bloomberg

A former Wells Fargo & Co. investment adviser stole nearly $3 million from clients and used the money for personal expenses and to buy gold coins, federal prosecutors said. Kenneth A. Welsh, 41, was arrested at his home in River Edge, New Jersey on charges that he misappropriated funds from the accounts of five investors between 2016 and 2021, some of whom were “elderly and financially unsophisticated.” Welsh, who worked for Wells Fargo in nearby Fairfield, was fired in June when his conduct was discovered. Welsh, who faces as much as 20 years in prison if convicted, was ordered released on bail following an initial appearance today before US Magistrate Judge Leda Dunn Wettre in Newark, New Jersey. David Holman, a lawyer who represented him in court, didn’t immediately respond to requests for comment. Welsh is also facing a parallel lawsuit by the Securities and Exchange Commission. “At Wells Fargo we hold our employees to the highest ethical standards,” the bank said in a statement. “We notified regulators of this matter, the financial adviser was terminated, and we are working directly with clients to reimburse them.” Welsh transferred at least $2.59 million from client accounts