Suspended Broker "K Money" Arrested for $800K Fraud Scheme

In a shocking turn of events, a FINRA-suspended broker known as "K Money" has been arrested and charged with defrauding his social media followers of over $800,000. According to the Justice Department, Kenneth Thom, who previously worked at firms like Joseph Stevens & Company and National Securities Corporation, was charged with securities and investment advisor fraud and faces up to 20 years in prison.

Thom, who had been suspended by FINRA in 2011 for failing to pay an arbitration penalty, allegedly reinvented himself as a successful trader on Facebook, calling himself "K$" or "K Money" and touting his false credentials as a "Wall Street Veteran" and "luminary." He offered subscriptions for trading lessons and daily trade suggestions, managing a Facebook group called the "K$ Trading Group."

Starting in 2023, Thom began accepting client deposits, promising to trade the funds. However, he only invested about half of the $786,234 he received from 67 clients, losing over 73% of the invested funds. Thom allegedly used the remaining money for personal expenses, including dining at restaurants, travel, luxury goods, and cash withdrawals. He is accused of falsifying performance updates to show clients gains when they were actually losing money.

In January 2025, Thom changed the Facebook group name to "AYABABTU" and removed hundreds of members, telling some investors that someone else had taken over his account. He then stopped responding to clients entirely, leaving them without their investments.