A former broker has been charged with securities fraud and investment adviser fraud following his arrest, federal authorities announced. Kenneth Thom, also known as “K$” and “K Money,” was taken into custody and will appear before U.S. Magistrate Judge Barbara Moses. The case is assigned to U.S. District Judge Edgardo Ramos.
According to the unsealed indictment, Thom allegedly used social media to solicit investments from individuals after his suspension as a broker in 2011 by the Financial Industry Regulatory Authority (FINRA). Authorities say that he raised nearly $800,000 from about 67 clients but invested only $350,000 of those funds, using the rest for personal expenses such as travel and luxury goods.
“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.”
The indictment alleges that between March 2024 and March 2025, Thom lost more than $250,000 trading options—resulting in a net loss of about 73%—and then published false updates online indicating significant gains for his clients. On July 3, 2024, for example, he reportedly posted performance results showing positive returns while actual losses had occurred.
“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.”
Thom’s activities included operating under aliases on social media platforms such as Facebook where he promoted himself as a financial expert and sold trading courses.
In January 2025, Thom changed the name of his Facebook group and stopped responding to clients’ inquiries.
The defendant faces up to 20 years in prison if convicted on the securities fraud charge and up to five years for investment adviser fraud; sentencing will be determined by a judge if there is a conviction.
Mr. Clayton acknowledged the efforts of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance; the SEC has also initiated civil proceedings against Thom.
Assistant U.S. Attorney Alexander Li is prosecuting the case under the Office’s Securities and Commodities Fraud Task Force.
Authorities emphasized that these charges are accusations at this stage; Thom is presumed innocent unless proven guilty in court.
