Social Media Influencer Pleads Guilty To Investment Adviser Fraud

United States Attorney for the Southern District of New York, Jay Clayton, announced that KENNETH THOM, a/k/a "K$," a/k/a "K Money," pled guilty today before U.S. District Judge Edgardo Ramos to investment adviser fraud. THOM is scheduled to be sentenced by Judge Ramos on June 25, 2026.

"Kenneth Thom pretended online to be a successful investor and adviser when in fact he was a suspended broker and grifter," said U.S. Attorney Jay Clayton. "He recruited social media followers, convinced them to invest with him, and then stole their money. Our Office will continue to work with our law enforcement partners to protect investors from fraud no matter where they seek their investment advice. Especially on social media, we remind investors to always protect themselves from fraud by verifying the credentials of those they invest with, and to always protect investments through due diligence."

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

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%. 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.

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THOM, 42, of Westfield, New Jersey, pled guilty to investment adviser fraud, which carries a maximum sentence of five years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as the 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.

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.