Suspended Broker Sentenced To Two Years In Prison For Defrauding Social Media Followers

United States Attorney for the Southern District of New York, Jamie McDonald, announced that KENNETH THOM, a/k/a "K$," a/k/a "K Money," was sentenced Tuesday, August 11, by U.S. District Judge Edgardo Ramos to two years in prison for investment adviser fraud.

"Kenneth Thom sold his social media followers the image of a successful trader when, in reality, he was a suspended broker," said U.S. Attorney Jamie McDonald. "He took nearly $800,000 from investors who believed he would invest their money and instead spent it on luxury goods for himself. That deception ends with this federal prison sentence."

According to the Indictment and other information in the public record:

In 2011, the Financial Industry Regulatory Authority ("FINRA") suspended THOM's broker registration after he failed to pay an arbitration award to an investor. THOM then reinvented himself online as a successful Wall Street trader. Using the monikers "K$" and "K Money," THOM described himself as a financial "luminary" and "beacon of knowledge." Through various social media channels, including Facebook, Instagram, and Twitch, THOM built an online following, to whom he sold trading lessons and daily text message alerts containing his trade suggestions.

Beginning in late 2023, THOM invited members of his Facebook group to participate in "shared accounts" that THOM would manage in exchange for half of the trading profits. THOM eventually raised nearly $800,000 from approximately 66 clients. Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including international travel, dining, and luxury goods. Of the $350,000 that THOM invested, he lost approximately 73% between approximately March 2024 and March 2025. Despite these massive losses, THOM regularly published updates in his Facebook group purporting to show dramatic gains in the shared accounts.

In January 2025, THOM changed the name of the Facebook group to "AYBABTU"-an acronym for the Internet meme "all your base are belong to us"-and stopped responding to his clients. At the time of his sentencing, THOM still maintained three luxury vehicles: a Maserati and two Porsches.

* * *

In addition to the prison term, THOM, 42, of Belleville, New Jersey, was sentenced to two years of supervised release. THOM was also ordered to pay forfeiture and restitution to his victims, each in the amount of $724,756.09.

Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation. Mr. McDonald also thanked the U.S. Securities and Exchange Commission for its assistance in the investigation.

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.