A former broker who rebranded himself as a finfluencer has now been sentenced to jail for duping investors online.
In March, Kenneth Thom — a former broker who was suspended by the U.S. Financial Industry Regulatory Authority (FINRA) in 2011 — pleaded guilty to one count of investment advisor fraud.
The plea followed allegations that, in 2024, he raised almost US$800,000 from investors through his Facebook group with promises that he would trade their money and split the profits — but he actually diverted more than half of the money for his own use and lost most (73%) of the US$350,000 that he did use to trade in failed options trading.
Thom was suspended by FINRA after he failed to pay an arbitration award to a former client. U.S. authorities alleged that he then reinvented himself on social media as a successful Wall Street trader — using the handles K$ and K Money — and started sharing trading insights.
Now, Thom has been sentenced to two years in prison, followed by two years of supervised release. He was also ordered to pay forfeiture and restitution of US$724,756.
In a parallel regulatory proceeding, the U.S. Securities and Exchange Commission (SEC) charged Thom with violating securities rules. In its complaint, the SEC is seeking permanent injunctions, disgorgement with interest and a civil penalty against him.