SEC v. Kenneth A. Welsh, No. LR-26503, District of New Jersey (Mar. 18, 2026) — Press Release
raw: Kenneth A. Welsh
Kenneth A. Welsh, No. LR-26503 (D.N.J. Mar. 18, 2026)
Former investment adviser Kenneth Welsh obtained a final judgment for misappropriating $2.86 million through fraudulent transactions to fund personal luxury and family expenses.
Kenneth Welsh was charged with violating the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. Between 2016 and 2021, he misappropriated at least $2.86 million via 137 fraudulent transactions to fund luxury goods, precious metals, and family credit card accounts. The court ordered $1,998,120.20 in disgorgement plus $467,175.68 in interest, satisfied by a $3,763,136.57 criminal restitution order.
The SEC obtained final judgment against former registered representative Kenneth Welsh for misappropriating at least $2.86 million between January 2016 and January 2021. Welsh executed at least 137 fraudulent transactions, including transferring funds to his wife’s and parents’ credit card accounts and purchasing gold coins, precious metals, and luxury goods. He also utilized client funds for personal electronic fund transfers. Welsh consented to permanent injunctions against violating multiple sections of the Securities Act, the Exchange Act, and the Investment Advisers Act. The final judgment requires disgorgement of $1,998,120.20 plus $467,175.68 in prejudgment interest. This amount is deemed satisfied by a $3,763,136.57 restitution order from a parallel criminal case, United States v. Welsh. The enforcement action was led by the SEC’s New York Regional Office with assistance from the U.S. Attorney’s Office.
Exhibits & Attached Documents (1)
Extracted insights
- $3.76M $3,763,136 $1M–$10M
- $2.86M $2.86 million $1M–$10M
- $2.00M $1,998,120 $1M–$10M
- $467K $467,175 $100K–$1M
- person christopher j. dunnigan
- person john c. lehmann
- person jordan baker
- person kenneth welsh
- person lindsay s. moilanen
- person permanently enjoined
- agency the sec's investigation
- Kenneth Welsh misappropriated at least $2.86 million
- Kenneth Welsh transferred funds to credit card accounts
- Kenneth Welsh caused checks to be fraudulently drawn
- Kenneth Welsh made at least 137 fraudulent transactions
- Kenneth Welsh used the money to purchase gold coins
- Kenneth Welsh agreed to be permanently enjoined
- Kenneth Welsh is liable for disgorgement in the amount of $1,998,120.20
- Kenneth Welsh is liable for prejudgment interest of $467,175.68
- Kenneth Welsh is subject to restitution order of $3,763,136.57
- John C. Lehmann conducted the SEC's investigation
- Jordan Baker conducted the SEC's investigation
- Lindsay S. Moilanen conducted the SEC's investigation
- Christopher J. Dunnigan led the litigation
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26503 / March 18, 2026Securities and Exchange Commission v. Kenneth Welsh, No. 21-civ-19387 (D.N.J. filed Oct. 28, 2021)SEC Obtains Final Judgment as to Former Registered Representative and Investment Adviser Representative Charged with Misappropriating Customer and Client AssetsOn March 16, 2026, the United States District Court for the District of New Jersey entered a final judgment as to Kenneth Welsh, a former registered representative and investment adviser representative, in the SEC’s civil enforcement action against him.The SEC’s complaint, filed on October 28, 2021, alleged that from January 2016 to January 2021, Welsh misappropriated at least $2.86 million from the accounts of multiple clients and customers by transferring funds from his clients’ and customers’ accounts to credit card accounts held in the names of his own wife and parents and by causing checks to be fraudulently drawn on his clients' and customers' accounts. According to the complaint, Welsh made at least 137 fraudulent transactions and used the money to purchase gold coins and other precious metals, buy luxury goods, and make electronic fund transfers to himself.On September 23, 2025, the Court entered a bifurcated consent judgment in which Welsh agreed to be permanently enjoined from violating Section 17(a) of the Securities Act of 1933; Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The final judgment orders Welsh liable for disgorgement in the amount of $1,998,120.20, plus prejudgment interest thereon of $467,175.68, the payment of which is deemed satisfied by the restitution order in the amount of $3,763,136.57 entered against him in the parallel criminal case United States v. Welsh, 23 cr. 932 (D.N.J.).The SEC’s investigation was conducted by John C. Lehmann, Jordan Baker, and Lindsay S. Moilanen under the supervision of Thomas P. Smith, Jr., all of the New York Regional Office. The litigation was led by Christopher J. Dunnigan under the supervision of Jack Kaufman. The SEC appreciates the assistance of the United States Attorney’s Office for the District of New Jersey.
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26503 / March 18, 2026Securities and Exchange Commission v. Kenneth Welsh, No. 21-civ-19387 (D.N.J. filed Oct. 28, 2021)SEC Obtains Final Judgment as to Former Registered Representative and Investment Adviser Representative Charged with Misappropriating Customer and Client AssetsOn March 16, 2026, the United States District Court for the District of New Jersey entered a final judgment as to Kenneth Welsh, a former registered representative and investment adviser representative, in the SEC’s civil enforcement action against him.The SEC’s complaint, filed on October 28, 2021, alleged that from January 2016 to January 2021, Welsh misappropriated at least $2.86 million from the accounts of multiple clients and customers by transferring funds from his clients’ and customers’ accounts to credit card accounts held in the names of his own wife and parents and by causing checks to be fraudulently drawn on his clients' and customers' accounts. According to the complaint, Welsh made at least 137 fraudulent transactions and used the money to purchase gold coins and other precious metals, buy luxury goods, and make electronic fund transfers to himself.On September 23, 2025, the Court entered a bifurcated consent judgment in which Welsh agreed to be permanently enjoined from violating Section 17(a) of the Securities Act of 1933; Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The final judgment orders Welsh liable for disgorgement in the amount of $1,998,120.20, plus prejudgment interest thereon of $467,175.68, the payment of which is deemed satisfied by the restitution order in the amount of $3,763,136.57 entered against him in the parallel criminal case United States v. Welsh, 23 cr. 932 (D.N.J.).The SEC’s investigation was conducted by John C. Lehmann, Jordan Baker, and Lindsay S. Moilanen under the supervision of Thomas P. Smith, Jr., all of the New York Regional Office. The litigation was led by Christopher J. Dunnigan under the supervision of Jack Kaufman. The SEC appreciates the assistance of the United States Attorney’s Office for the District of New Jersey.