Westfield Man Steals Nearly $800K From Clients In Online Trading Scheme, Officials Say

WESTFIELD, NJ - A Westfield man is charged with scheming Facebook followers and other clients out of nearly $800,000 as part of him posing as a fake securities broker.

Kenneth Thom, 41, is accused of posting fake performance updates, hiding losses and using client funds for luxury purchases for years while he operated in the Southern District of New York and elsewhere around the United States, according to an unsealed indictment. He was arrested on Aug. 21, and is charged with one count of securities fraud, and one count of investment adviser fraud. The two together carry a maximum of 25 years in prison.

Thom first registered as a broker after passing securities licensing examinations in 2006. In or around 2011, the Financial Industry Regulatory Authority (FINRA) suspended his eligibility due to his failure to pay an arbitration award to a client. Around this time, he also admitted to the FBI that he pulled that client's money with his own in a brokerage account, with which he lost most of the funds through unsuccessful trading. He spent what was left on a security deposit for his Manhattan apartment.

This led him to create fake excuses and ignore the client when she reached out to ask about the funds. It is after this that he began promoting himself online to unsuspecting targets.

“After his suspension as a broker, Kenneth Thom used social media to steal from investors,” adds United States Attorney Jay Clayton. “If you’re getting investment advice from someone who is not registered as a broker or investment advisor, the risk of fraud is much higher."

Under the names "K$" and "K Money," he portrayed himself as a "Wall Street veteran," a "luminary," and a "beacon of knowledge." Behind these monikers, he sold courses and advice to followers. One of his most popular outlets was called the "K$ Trading Group" (the"K$ Facebook Group).

In late 2023, Thom started inviting members of the group to join him on "shared accounts" that he would control and take a fee as a percentage of trading profits. This number grew to nearly $800,000 from around 67 clients, only $350,000 of which was used toward trading. Thom used the remainder for personal purchases on travel, dining and luxury items.

More than $250,000 of the $350,000 was lost between March 2024 and March of this year. He hid this by putting out false updates in the Facebook group showing positive year-to-date statistics with returns that ranged from four percent to 120 percent.

In just 2024 alone, Thom spent $6,026 of client funds on an Airbnb rental, $5,883 on an all-business-class airline that flies between Newark and Paris, France, and another $2,725 on Hermes designer fashion products.

In or around January, the name of the K$ Facebook group was changed to "AYBABTU," an acronym for "all your base are belong to us." It was then that Thom stopped responding to clients.

Just a few months later, he closed a bank account that he used to receive most of the client funds and withdrew the remaining $89,586.70 balance.

The United States Attorney's Office is looking to seize all assets directly purchased with, or as a result of Thom's acts. They will then move on to seek other items that meet the value of the assets in the event that they can not be recovered.

Patch has reached out for more information regarding Thom's arrest and proceedings moving forward, and is yet to hear back.