Kenneth Thom, also known as “K$” and “K Money,” pled guilty on Mar. 19 before U.S. District Judge Edgardo Ramos to investment adviser fraud, according to an announcement by United States Attorney for the Southern District of New York, Jay Clayton. Thom is scheduled to be sentenced on June 25.
The case highlights concerns about fraudulent investment schemes promoted through social media platforms. Authorities say that investors should verify the credentials of those offering financial advice online and conduct due diligence before making investments.
Clayton said, “Kenneth Thom pretended online to be a successful investor and adviser when in fact he was a suspended broker and grifter. He recruited social media followers, convinced them to invest with him, and then stole their money. Our Office will continue to work with our law enforcement partners to protect investors from fraud no matter where they seek their investment advice. Especially on social media, we remind investors to always protect themselves from fraud by verifying the credentials of those they invest with, and to always protect investments through due diligence.”
According to court documents, Thom passed securities licensing exams in May 2006 and registered as a broker with the Financial Industry Regulatory Authority (FINRA). In January 2011, FINRA suspended his registration after he failed to pay an arbitration award related to commingling client funds and losing most of the money through unsuccessful trading. After his suspension, Thom used social media under various aliases to promote himself as a successful trader and sold trading courses online.
Beginning in late 2023, Thom invited members of his Facebook group—at times called the “K$ Trading Group”—to participate in shared accounts managed by him 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 such as travel and luxury goods. Of the invested funds, more than $250,000 was lost trading options between March 2024 and March 2025. To conceal these losses, Thom posted false performance updates showing gains when actual losses had occurred.
In January 2025, he changed the name of his Facebook group and stopped responding to clients altogether.
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 this case and acknowledged assistance from the U.S. Securities and Exchange Commission.
