A New Jersey man who built an online following by presenting himself as a successful Wall Street trader has been sentenced to two years in federal prison after prosecutors said he collected nearly $800,000 from followers and used much of the money for personal expenses instead of investing it as promised.
Kenneth Thom, 42, of Belleville, New Jersey, also known online as “K$” and “K Money,” was sentenced on August 11, 2026, by U.S. District Judge Edgardo Ramos in the Southern District of New York after being convicted of investment adviser fraud.
In addition to his prison sentence, Thom was ordered to serve two years of supervised release and pay $724,756.09 in restitution to victims. The court also imposed forfeiture in the same amount.
From Suspended Broker to Social Media Trading Personality
According to federal prosecutors, Thom had previously worked as a registered broker, but the Financial Industry Regulatory Authority, commonly known as FINRA, suspended his broker registration in 2011 after he failed to pay an arbitration award owed to an investor.
Following the suspension, prosecutors said Thom developed a substantial presence on social media, portraying himself as an experienced and highly successful Wall Street trader.
Using Facebook, Instagram and Twitch, Thom promoted investment advice, sold trading lessons and distributed daily text-message alerts containing his trading recommendations. He described himself online as an accomplished financial authority while attracting followers who looked to him for investment guidance.
That online audience eventually became the source of investors for what prosecutors said developed into a federal fraud scheme.
Followers Were Invited to Invest in “Shared Accounts”
Beginning in late 2023, Thom allegedly began offering members of his Facebook community the opportunity to participate in investment accounts that he would personally manage.
Under the arrangement, investors would provide the capital while Thom would trade the funds. In exchange, he was supposed to receive half of the profits generated through the accounts.
Approximately 66 clients ultimately entrusted Thom with nearly $800,000, according to the U.S. Attorney’s Office.
But prosecutors said only about $350,000 of the money was actually invested.
Much of the remaining investor money was instead diverted to Thom’s personal expenses, including international travel, restaurant spending and luxury purchases.
Investments Lost Approximately 73%
The portion of the money that Thom did invest performed poorly.
Federal prosecutors said that between approximately March 2024 and March 2025, Thom lost about 73% of the approximately $350,000 he placed into investments.
Despite those losses, his followers allegedly were not given an accurate picture of what was happening with their money.
Instead, prosecutors said Thom continued posting updates to his Facebook group that appeared to show significant profits and substantial increases in the value of the shared investment accounts.
The online representations created a dramatically different picture from the actual performance of the investments.
Facebook Group Renamed Before Communication Stopped
By January 2025, according to the Justice Department, Thom changed the name of his Facebook group to “AYBABTU,” an acronym referring to the Internet meme “all your base are belong to us.”
He then stopped communicating with clients who had entrusted him with their money.
Federal prosecutors also noted that, at the time of sentencing, Thom continued to possess three luxury vehicles: a Maserati and two Porsches.
Federal Investigation Leads to Prison Sentence
The FBI investigated the case with assistance from the U.S. Securities and Exchange Commission. The Securities and Commodities Fraud Task Force of the U.S. Attorney’s Office for the Southern District of New York prosecuted the case. Assistant U.S. Attorney Alexander Li handled the prosecution.
The sentence illustrates how an investment fraud case can involve far more than simply repaying the money that was taken.
A federal defendant may face imprisonment, forfeiture of assets, restitution to victims and years of court supervision after release. Financial fraud cases can also involve extensive investigations of bank accounts, investment records, electronic communications and social media activity.
For Thom, the case ultimately resulted in a 24-month federal prison sentence, two years of supervised release, more than $724,000 in restitution and an equivalent forfeiture judgment.