Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Kenneth Thom, a suspended broker from Westfield, New Jersey, was charged with securities fraud and investment adviser fraud following an indictment unsealed by the United States Attorney for the Southern District of New York. The announcement was made by U.S. Attorney Jay Clayton and FBI Assistant Director in Charge Christopher G. Raia. Thom was arrested and is scheduled to appear before U.S. Magistrate Judge Barbara Moses; the case is 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 allegations detailed in the indictment, Thom became a registered broker with FINRA after passing securities licensing exams in May 2006 but was suspended in January 2011 for failing to pay an arbitration award to an investor. Around that time, he admitted commingling investor money with his own and losing most of it through unsuccessful trades without disclosing these losses when asked by the investor.
Following his suspension, Thom promoted himself online using names such as “K$” and “K Money.” He described himself as experienced on Wall Street and sold trading courses along with trade suggestions via platforms like Facebook under groups named "K$ Trading Group" and later "AYBABTU." Beginning in late 2023, he invited group members to invest in managed accounts that he claimed would yield profits for both him and clients.
The indictment alleges that nearly $800,000 was raised from about 67 clients; however, only approximately $350,000 was invested while most funds were diverted for personal expenses including travel and luxury goods. Of the amount invested, more than $250,000 was lost trading options between March 2024 and March 2025—a net loss near 73%. To conceal these losses from clients, false updates were posted showing positive returns.
In January 2025, after changing the group’s name on Facebook to “AYBABTU,” Thom ceased communications with clients.
Thom faces one count each of securities fraud (maximum sentence: 20 years) and investment adviser fraud (maximum sentence: five years). Sentencing will be determined by a judge if convicted; all charges are currently allegations.
U.S. Attorney Clayton recognized the work of the FBI and acknowledged assistance provided by the U.S. Securities and Exchange Commission (SEC), which has also begun separate civil proceedings against Thom.
The Office’s Securities and Commodities Fraud Task Force is prosecuting this case under Assistant U.S. Attorney Alexander Li.
As noted by authorities, all defendants are presumed innocent until proven guilty.
