Mr. Welsh was registered with Wells Fargo Clearing Services, LLC in Fairfield, NJ. Wells Fargo terminated Mr. Welsh’s employment in June 2021 after the allegations arose that Mr. Welsh misappropriated funds from Wells Fargo’s customers, including senior citizens.

Iorio Altamirano LLP is investigating potential legal claims on behalf of customers of Kenneth Welsh and Wells Fargo related to potential misconduct by Mr. Welsh.

Customers who have been harmed by Mr. Welsh should contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and to review their legal rights.

Securities and Exchange Commission v. Kenneth A. Welsh

On October 28, 2021, the SEC filed a complaint in the United States District Court of New Jersey alleging that Mr. Welsh violated Sections 17(a)(1) and 17(a)(2) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Section 206(1) and (2) of the Investment Advisors Act of 1940.

Specifically, the SEC alleged:

• Between at least January 2016 and January 2021, Mr. Welsh used more than a hundred fraudulent Automated Clearing House (“ACH”) transactions to transfer funds from his clients’ and customers’ accounts to credit card accounts held in the names of his own wife and parents, which he used for his personal benefit.
• Welsh also caused numerous checks to be fraudulently drawn on his clients’ and customers’ accounts, which he secretly used to buy gold coins and other precious metals and to pay for his personal expenses.
• None of these transactions were knowingly authorized by his clients or customers, some of whom were elderly and financially unsophisticated.
• In many cases, Mr. Welsh intentionally circumvented Wells Fargo’s policies and procedures to carry out these transfers, including manually altering checks.
• Welsh frequently sold securities in his clients’ and customers’ accounts –sometimes only days before the fraudulent transfers – so that cash would be available in the accounts for him to steal. Mr. Welsh did not disclose to his victims that the purpose of these securities sales was to facilitate his scheme rather than to maximize their investment returns and total assets.

The SEC’s complaint seeks to permanently enjoin Mr. Welsh from violating federal securities laws and disgorge all ill-gotten gains he received, directly or indirectly, with pre-judgment interest.

Kenneth Andrews Welsh (CRD No. 4657872)

Mr. Welsh has 17 years of experience in the securities industry and has been associated with the following firms in Fairfield, NJ:

• Wells Fargo Clearing Services, LLC, from September 2012 to July 2021.
• Morgan Stanley Smith Barney, from March 2004 to October 2012.

Mr. Welsh was discharged by Wells Fargo after allegations were made that Mr. Welsh misappropriated funds from Wells Fargo’s clients.

According to his public disclosure report, Mr. Welsh has been the subject of at least four customer complaints:

• Customer Dispute (August 2021): In September 2021, a customer made an oral complaint that Mr. Welsh assured him that he would see a purchase of stock on his next account statement. However, the order was not filled in time. The matter was settled by Wells Fargo for monetary compensation.
• Customer Dispute (June 2021): A customer filed a written complaint alleging that funds were stolen by Mr. Welsh. The dispute is pending.
• Customer Dispute (June 2021): A customer filed a written complaint alleging that monies were withdrawn from her brokerage account without her authorization in 76 transactions over a 27-month period. The dispute is pending.
• Customer Dispute (April 2021): A customer filed a written complaint alleging that Mr. Welsh likely perpetrated a fraud on the client related to the alteration of checks, and payments and transfers from the client’s accounts. The dispute is pending.

FINRA’s BrokerCheck tool can be used to obtain Mr. Welsh’s complete and updated disclosure reports.

Wells Fargo – A Duty to Supervise

Financial institutions like Wells Fargo must properly supervise financial advisors and customer accounts. Brokerage firms must establish and maintain a reasonably designed system to oversee account activity, such as excessive trading, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

How to Recover Financial Losses or Obtain a Free Consultation

If you have been harmed by Mr. Welsh, contact securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.

Ms. Wagner filed a securities arbitration claim in December 2019, seeking approximately $1.34 million in actual damages. The Statement of Claim alleged that Mr. Perry, while registered with Brokers International Financial Services, was also the President of Brendanwood Financial Brokerage, an insurance brokerage firm in Carmel, Indiana. The claim alleged that Brokers International Financial Services and Mr. Perry allowed Brian Simms, CEO of both Brendanwood Financial Brokerage and Brendanwood Financial Services, to use the company as a conduit to obtain funds from Mr. Wagner and convert those funds for his own personal use. According to the claim, Mr. Perry, who was responsible for its operations oversight, appears to be complicit in the actions of Mr. Simms.

According to public reports, Ms. Wagner also filed a lawsuit on December 2, 2019, in Hamilton Circuit Court against Brian Simms. The lawsuit alleged that Mr. Simms relied on Brian Simms after the 2017 death of her husband, Michael Wagner. Mr. Simms allegedly assisted Ms. Wagner in making death benefit claims on life insurance policies through North American Company for Life and Health Insurance and the Lincoln National Life Insurance Company and then convinced her to vest the proceeds in additional insurance, annuities, and investments. The lawsuit alleges in total, $1,342,482 of Ms. Wagner’s assets are missing and unaccounted for or misappropriated by Mr. Simms and Brendanwood.

In February 2020, a second lawsuit was filed against Mr. Simms and Brendanwood by Louis and Marsha Hill of West Lafayette, Indiana. The lawsuit alleged that Mr. Simms, who the Hills relied upon for their insurance and investment needs, misappropriated $450,719 of their money.

In June 2020, a second FINRA arbitration claim was filed against Mr. Perry, asserting similar allegations. The claim, which is seeking $150,000 in damages, alleges that an insurance agent took checks that were made payable to Mr. Perry’s firm, totaling $150,000, and converted it for his personal use.

Brokers International Financial Services LLC

Brokers International Financial Services LLC has been registered with the Securities and Exchange Commission (“SEC”) and a Financial Industry Regulatory Authority (“FINRA”) member since 2006. The firm has approximately 240 registered individuals and is headquartered in Urbandale, Iowa.

Brokers International Financial Services LLC has twice been the subject of regulatory sanctions by FINRA. First, in 2012, the firm was censured and fined $16,000 after FINRA alleged that the firm failed to make timely filings for reportable events, made an inaccurate filing in one instance, allowed a statutorily disqualified person to associated with the firm, and failed to maintain written supervisory procedures reasonably designed to achieve compliance with applicable securities laws. Second, in 2016, the firm was censured and fined $45,000 after FINRA alleged that from May 2012 through April 2014, the firm used a form for variable annuity purchases that failed to confirm that customers had been fully informed of the material features and fees of variable annuities prior to recommending that they invest in those products. FINRA also alleged that the firm approved solicited variable annuity purchases without adequate information to make reasonable suitability determinations.

Financial Advisor Mark Christopher Perry (CRD # 2197284)

Mark Perry, who has 23 years of experience in the securities industry, is currently not registered with any firm. He has previously been associated with the following firms:

• Brokers International Financial Services, LLC in Urbandale, Iowa, from January 2017 to July 2019.
• AXA Advisors, LLC in Indianapolis, Indiana, from Juley 2014 to February 2015.
• Next Financial Group, Inc. in Carmel, Indiana, from April 2014 to July 2014.
• Pruco Securities, LLC in Carmel, Indiana, from January 1992 to February 2012.
• The Prudential Insurance Company of America in Newark, New Jersey, from January 1992 to December 1993.

Mr. Perry has also been associated with the following entities:

• Brendanwood Investment Group in Carmel, Indiana.
• Brendanwood Financial Brokerage in Carmel, Indiana.

According to his BrokerCheck report, he worked in a supervisory capacity, responsible for operations oversight.

Mr. Perry’s BrokerCheck report also discloses that he has been the subject of numerous tax liens and civil judgments:

• May 23, 2019: $51,275.37 (tax).
• February 14, 2019: $157.12 (civil).
• November 30, 2018: $185,327 (tax).
• April 4, 2016: $23,822 (tax).

How to Recover Losses or Obtain a Free Consultation

Iorio Altamirano LLP represents investors in disputes with their financial advisors or brokerage firms, such as Mark Perry and Brokers International Financial Services LLC.

If you have lost money with broker Brian Simms, Mark Perry, or Brokers International Financial Services LLC, contact FINRA arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.