Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Kenneth Thom, also known as "K$" and "K Money," pled guilty on Mar. 19 before U.S. District Judge Edgardo Ramos to investment adviser fraud, according to an announcement by United States Attorney for the Southern District of New York, Jay Clayton. Thom is scheduled to be sentenced on June 25.
The case highlights concerns about fraudulent investment schemes promoted through social media platforms. Authorities say that investors should verify the credentials of those offering financial advice online and conduct due diligence before making investments.
Clayton said, "Kenneth Thom pretended online to be a successful investor and adviser when in fact he was a suspended broker and grifter. He recruited social media followers, convinced them to invest with him, and then stole their money. Our Office will continue to work with our law enforcement partners to protect investors from fraud no matter where they seek their investment advice. Especially on social media, we remind investors to always protect themselves from fraud by verifying the credentials of those they invest with, and to always protect investments through due diligence."
According to court documents and public records, Thom passed securities licensing exams in May 2006 and registered as a broker with the Financial Industry Regulatory Authority (FINRA). In January 2011, FINRA suspended his registration after he failed to pay an arbitration award related to commingling client funds and losing most of the money through unsuccessful trading. After his suspension, Thom began promoting himself as a successful trader on social media under various aliases.
Thom used platforms such as Facebook—specifically a group called "K$ Trading Group"—to sell trading courses and offer trade suggestions. Beginning in late 2023, he invited members of this group into so-called "shared accounts" that he would manage for a percentage of profits. He raised nearly $800,000 from about 67 clients but invested only around $350,000; most of the remainder was spent on personal expenses including travel and luxury goods. Of the invested funds, more than $250,000 was lost trading options between March 2024 and March 2025—a net loss of approximately 73%. To conceal these losses, Thom posted false performance updates showing significant gains.
In January 2025, the Facebook group was renamed “AYBABTU,” referencing an internet meme meaning “all your base are belong to us,” after which Thom stopped responding to clients.
Thom faces up to five years in prison for investment adviser fraud; however, sentencing will ultimately be determined by Judge Ramos based on statutory guidelines set by Congress.
Clayton praised the FBI's work on the case and acknowledged assistance from the U.S. Securities and Exchange Commission.
