SUSPENDED BROKER CHARGED FOR ONLINE INVESTMENT FRAUD

Press Release SUSPENDED BROKER CHARGED FOR ONLINE INVESTMENT FRAUD Thursday, August 21, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Kenneth Thom Raised Nearly $800,000 From Facebook Followers, Posted Fake Performance Updates to Hide His Trading Losses, and Misappropriated Client Funds for Luxury Purchases United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the unsealing of an Indictment charging KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” with securities fraud and investment adviser fraud. THOM was arrested today and will be presented before U.S. Magistrate Judge Barbara Moses. The case has been assigned to U.S. District Judge Edgardo Ramos.“After his suspension as a broker, Kenneth Thom used social media to steal from investors,” said U.S. Attorney Jay Clayton. “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. We will hold accountable anyone who preys on everyday investors who rightly expect their trading professionals to be in good standing and act in their best interests.”“Kenneth Thom allegedly manipulated his client’s investments to not only place unsuccessful trades, but also promote an illusion of success,” said FBI Assistant Director in Charge Christopher G. Raia. “Thom’s alleged incessant deceit betrayed the trust of investors by failing to disclose his misuse and loss of client funds. The FBI will never waiver from apprehending any individual who steals from others’ pockets to greedily finance personal purchases.”According to the allegations in the Indictment unsealed today:[1]In May 2006, THOM passed securities licensing examinations and registered as a broker with the Financial Industry Regulatory Authority (“FINRA”). In or around January 2011, FINRA suspended THOM’s broker registration after he failed to pay an arbitration award to an investor. THOM also admitted around that time to the FBI that he had commingled that investor’s money with his own money in a brokerage account that THOM controlled and lost most of the money through unsuccessful trading. THOM further admitted that when the investor sought to withdraw her funds, he did not tell the investor that he had lost her money and instead invented fake excuses and then ignored the investor altogether.After being suspended by FINRA, THOM turned to social media and promoted himself online as a successful trader. Using the monikers “K$” and “K Money,” THOM described himself as a “Wall Street veteran,” a “luminary,” and a “beacon of knowledge,” and he used his online platforms to sell trading courses and trade suggestions to his followers. One of THOM’s platforms was a Facebook group called, at relevant times, the “K$ Trading Group” (the “K$ Facebook Group”), in which THOM posted the results of his purportedly successful trades.Beginning in late 2023, THOM invited members of the K$ Facebook Group to participate in “shared accounts” that THOM would manage in exchange for a percentage of the trading profits. THOM eventually raised nearly $800,000 from approximately 67 clients. Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including on travel, dining, and luxury goods.Of the $350,000 that THOM invested, he lost more than $250,000 trading options, for a net loss of approximately 73% between in or around March 2024 and March 2025. To hide these losses, THOM published false performance updates showing significant gains. For example, on or around July 3, 2024, THOM posted in the K$ Facebook Group that each of his three purported shared accounts was positive year-to-date, with returns ranging from 4% to 120% (see photo below). In fact, as of the close of the preceding trading day, THOM had lost approximately 31% of the client funds he invested to date.In or about January 2025, the name of the K$ Facebook Group was changed to “AYBABTU” — an acronym for the Internet meme “all your base are belong to us” — and THOM stopped responding to clients.* * *THOM, 41, of Westfield, New Jersey, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five years in prison.The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission, which separately initiated civil proceedings against the defendant today.This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Alexander Li is in charge of the prosecution.The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. u.s._v._thom_indictment.pdf [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation. Updated August 21, 2025 Component USAO - New York, Southern Press Release Number: 25-194

Press Release SUSPENDED BROKER CHARGED FOR ONLINE INVESTMENT FRAUD Thursday, August 21, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Kenneth Thom Raised Nearly $800,000 From Facebook Followers, Posted Fake Performance Updates to Hide His Trading Losses, and Misappropriated Client Funds for Luxury Purchases United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the unsealing of an Indictment charging KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” with securities fraud and investment adviser fraud. THOM was arrested today and will be presented before U.S. Magistrate Judge Barbara Moses. The case has been assigned to U.S. District Judge Edgardo Ramos.“After his suspension as a broker, Kenneth Thom used social media to steal from investors,” said U.S. Attorney Jay Clayton. “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. We will hold accountable anyone who preys on everyday investors who rightly expect their trading professionals to be in good standing and act in their best interests.”“Kenneth Thom allegedly manipulated his client’s investments to not only place unsuccessful trades, but also promote an illusion of success,” said FBI Assistant Director in Charge Christopher G. Raia. “Thom’s alleged incessant deceit betrayed the trust of investors by failing to disclose his misuse and loss of client funds. The FBI will never waiver from apprehending any individual who steals from others’ pockets to greedily finance personal purchases.”According to the allegations in the Indictment unsealed today:[1]In May 2006, THOM passed securities licensing examinations and registered as a broker with the Financial Industry Regulatory Authority (“FINRA”). In or around January 2011, FINRA suspended THOM’s broker registration after he failed to pay an arbitration award to an investor. THOM also admitted around that time to the FBI that he had commingled that investor’s money with his own money in a brokerage account that THOM controlled and lost most of the money through unsuccessful trading. THOM further admitted that when the investor sought to withdraw her funds, he did not tell the investor that he had lost her money and instead invented fake excuses and then ignored the investor altogether.After being suspended by FINRA, THOM turned to social media and promoted himself online as a successful trader. Using the monikers “K$” and “K Money,” THOM described himself as a “Wall Street veteran,” a “luminary,” and a “beacon of knowledge,” and he used his online platforms to sell trading courses and trade suggestions to his followers. One of THOM’s platforms was a Facebook group called, at relevant times, the “K$ Trading Group” (the “K$ Facebook Group”), in which THOM posted the results of his purportedly successful trades.Beginning in late 2023, THOM invited members of the K$ Facebook Group to participate in “shared accounts” that THOM would manage in exchange for a percentage of the trading profits. THOM eventually raised nearly $800,000 from approximately 67 clients. Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including on travel, dining, and luxury goods.Of the $350,000 that THOM invested, he lost more than $250,000 trading options, for a net loss of approximately 73% between in or around March 2024 and March 2025. To hide these losses, THOM published false performance updates showing significant gains. For example, on or around July 3, 2024, THOM posted in the K$ Facebook Group that each of his three purported shared accounts was positive year-to-date, with returns ranging from 4% to 120% (see photo below). In fact, as of the close of the preceding trading day, THOM had lost approximately 31% of the client funds he invested to date.In or about January 2025, the name of the K$ Facebook Group was changed to “AYBABTU” — an acronym for the Internet meme “all your base are belong to us” — and THOM stopped responding to clients.* * *THOM, 41, of Westfield, New Jersey, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five years in prison.The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission, which separately initiated civil proceedings against the defendant today.This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Alexander Li is in charge of the prosecution.The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. u.s._v._thom_indictment.pdf [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation. Updated August 21, 2025 Component USAO - New York, Southern Press Release Number: 25-194