NEW YORK, NY – Kenneth Thom, 41, of Westfield, New Jersey, is facing serious federal charges after allegedly running a nearly $800,000 investment fraud scheme following his suspension as a licensed broker. Thom, also known online as “K$” and “K Money,” is accused of preying on investors through social media, promising high returns while allegedly diverting funds for personal use.
U.S. Attorney for the Southern District of New York, Jay Clayton, and Christopher G. Raia, Assistant Director in Charge of the New York Field Office of the FBI, announced the unsealing of an indictment today. Thom was arrested and will appear before U.S. Magistrate Judge Barbara Moses, with the case assigned to U.S. District Judge Edgardo Ramos. “After his suspension as a broker, Kenneth Thom used social media to steal from investors,” Clayton stated. “If you’re getting investment advice from someone who is not registered as a broker or investment advisor, the risk of fraud is much higher.”
The scheme began to unravel after Thom’s broker registration was suspended by the Financial Industry Regulatory Authority (FINRA) in January 2011, after he failed to pay an arbitration award to an investor. The indictment alleges that Thom had previously commingled the investor’s funds with his own, lost the money through unsuccessful trades, and then deliberately misled the investor about the loss. Undeterred, Thom reinvented himself online, branding himself as a “Wall Street veteran,” a “luminary,” and a “beacon of knowledge” to attract followers.
Starting in late 2023, Thom invited members of his “K$ Trading Group” Facebook group to participate in “shared accounts” that he would manage. He promised to share in the profits, ultimately raising nearly $800,000 from approximately 67 clients. However, the indictment reveals that only around $350,000 of the funds were actually invested. The remainder, authorities allege, was funneled into Thom’s personal expenses, including travel, dining, and luxury goods. Of the invested funds, over $250,000 was lost through options trading – a staggering 73% loss.
To maintain the illusion of success, Thom allegedly published fabricated performance updates, boasting returns ranging from 4% to 120% in July 2024, despite having already lost approximately 31% of client funds. The scheme continued to deteriorate, and in January 2025, the Facebook group’s name was changed to “AYBABTU” – a nod to the obscure internet meme “all your base are belong to us” – before Thom abruptly stopped responding to his clients. “Thom’s alleged incessant deceit betrayed the trust of investors by failing to disclose his misuse and loss of client funds,” said FBI Assistant Director in Charge Raia. “The FBI will never waiver from apprehending any individual who steals from others’ pockets to greedily finance personal purchases.”
Thom is charged with securities fraud and investment adviser fraud. If convicted, he faces significant prison time and financial penalties. This case serves as a stark reminder of the risks associated with unregulated investment advice and the importance of thorough due diligence before entrusting funds to any financial professional. The Grimy Times will continue to follow this case as it develops.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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