SEC v. Kenneth A. Welsh, District of New Jersey (Mar. 18, 2026) — Judgment

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY

SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
KENNETH A. WELSH,
Defendant.

Case No. 21-cv-19387

WILLIAM J. MARTINI, U.S.D.J.:

Before the Court is the Securities and Exchange Commission's (the "Commission") Proposed Final Judgment against Defendant Kenneth A. Welsh ("Welsh" or "Defendant"). ECF No. 041.

WHEREAS, the Commission having filed a Complaint; and

WHEREAS, Welsh consented to the Court's jurisdiction over him and the subject matter of this action, consented to entry of this Judgment; waived findings of fact and conclusions of law, and waived any right to appeal from this Judgment; and

WHEREAS, the Court finds that the proposed judgment and disgorgement of ill-gotten gains is fair, reasonable, and does not disserve the public interest under SEC v. Citigroup Global Markets, Inc., 673 F.3d 158 (2d Cir. 2012);

IT IS HEREBY ORDERED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security:

(a) to employ any device, scheme, or artifice to defraud;
(b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or
(c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person; and

IT IS FURTHER ORDERED that Defendant is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the "Securities Act") [15 U.S.C. § 77q(a)]in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly:
(a) to employ any device, scheme, or artifice to defraud;
(b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or
(c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser; and

IT IS FURTHER ORDERED that Defendant is permanently restrained and enjoined from violating Sections 206(1) and (2) of the Investment Advisers Act of 1940 (the “Advisers Act”) [15 U.S.C. §§ 80b-6(1) and 80b-6(2)] by, while acting as an investment adviser, the mails or any means or instrumentalities of interstate commerce, directly or indirectly:
(a) to employ any device, scheme, or artifice to defraud any client or prospective client; or
(b) to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client.

IT IS FURTHER ORDERED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraphs also bind the following who receive actual notice of this Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a); and

IT IS FURTHER ORDERED that Defendant is liable for disgorgement of $1,988,120.20, representing his ill-gotten gains as a result of the conduct alleged in the Complaint, and prejudgment interest thereon of $467,175.68 for a total of $2,465,295.88, payment of which shall be deemed satisfied by the order of restitution entered against him in United States v. Kenneth A. Welsh, 23-cr-932 (previously 21-mj-13385) (D.N.J.); and

IT IS FURTHER ORDERED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein; and

IT IS FURTHER ORDERED that, for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the allegations in the complaint are true and admitted by Defendant, and further, any debt for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this Judgment or any other judgment, order, consent order, decree or settlement agreement entered in connection with this proceeding, is a debt for the violation by Defendant of the federal securities laws or any regulation or order issued under suchlaws, as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19).

Date: March 16 2026

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UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY

SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
KENNETH A. WELSH,
Defendant.

Case No. 21-cv-19387

WILLIAM J. MARTINI, U.S.D.J.:

Before the Court is the Securities and Exchange Commission's (the "Commission") Proposed Final Judgment against Defendant Kenneth A. Welsh ("Welsh" or "Defendant"). ECF No. 041.

WHEREAS, the Commission having filed a Complaint; and

WHEREAS, Welsh consented to the Court's jurisdiction over him and the subject matter of this action, consented to entry of this Judgment; waived findings of fact and conclusions of law, and waived any right to appeal from this Judgment; and

WHEREAS, the Court finds that the proposed judgment and disgorgement of ill-gotten gains is fair, reasonable, and does not disserve the public interest under SEC v. Citigroup Global Markets, Inc., 673 F.3d 158 (2d Cir. 2012);

IT IS HEREBY ORDERED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security:

(a) to employ any device, scheme, or artifice to defraud;
(b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or
(c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person; and

IT IS FURTHER ORDERED that Defendant is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 (the "Securities Act") [15 U.S.C. § 77q(a)]in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly:
(a) to employ any device, scheme, or artifice to defraud;
(b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or
(c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser; and

IT IS FURTHER ORDERED that Defendant is permanently restrained and enjoined from violating Sections 206(1) and (2) of the Investment Advisers Act of 1940 (the “Advisers Act”) [15 U.S.C. §§ 80b-6(1) and 80b-6(2)] by, while acting as an investment adviser, the mails or any means or instrumentalities of interstate commerce, directly or indirectly:
(a) to employ any device, scheme, or artifice to defraud any client or prospective client; or
(b) to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client.

IT IS FURTHER ORDERED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraphs also bind the following who receive actual notice of this Judgment by personal service or otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a); and

IT IS FURTHER ORDERED that Defendant is liable for disgorgement of $1,988,120.20, representing his ill-gotten gains as a result of the conduct alleged in the Complaint, and prejudgment interest thereon of $467,175.68 for a total of $2,465,295.88, payment of which shall be deemed satisfied by the order of restitution entered against him in United States v. Kenneth A. Welsh, 23-cr-932 (previously 21-mj-13385) (D.N.J.); and

IT IS FURTHER ORDERED that the Consent is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein; and

IT IS FURTHER ORDERED that, for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the allegations in the complaint are true and admitted by Defendant, and further, any debt for disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this Judgment or any other judgment, order, consent order, decree or settlement agreement entered in connection with this proceeding, is a debt for the violation by Defendant of the federal securities laws or any regulation or order issued under suchlaws, as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19).

Date: March 16 2026

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