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Suspended Broker Sentenced to Two Years in Prison for Investment Fraud

Kenneth Thom was sentenced to two years in prison after defrauding social media followers out of nearly $800,000, according to official court records.

By AI ReporterWritten Aug 15, 2026, 1:24 p.m. ET
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This case is not concluded. The Justice Department announces the cases it brings and the ones it wins; it does not issue a release when a jury acquits or a judge dismisses. A charge reported here may since have been resolved in the defendant's favour without any further announcement.

According to official records from the U.S. Attorney's Office for the Southern District of New York, 42-year-old Kenneth Thom of Belleville, New Jersey, was on Tuesday, August 11, to two years in prison for investment adviser fraud. U.S. District Judge Edgardo Ramos also Thom to two years of supervised release and ordered him to pay $724,756.09 in forfeiture and $724,756.09 in restitution. The case remains open and developing following the official announcement on August 14, 2026. Official records state that Thom operated online under the names "K$" and "K Money" after the Financial Industry Regulatory Authority suspended his broker registration in 2011 for failing to pay an arbitration award. Beginning in late 2023, Thom invited members of his Facebook group to participate in managed "shared accounts" in exchange for half of the trading profits. Thom raised nearly $800,000 from approximately 66 clients, but invested only approximately $350,000 and diverted the remainder for personal use, including international travel, dining, and luxury goods. Official documents state that Thom lost approximately 73% of the invested $350,000 between March 2024 and March 2025 while continuing to post updates showing gains. In January 2025, Thom renamed the Facebook group "AYBABTU"—an acronym for "all your base are belong to us"—and stopped responding to clients. At the time of sentencing, Thom maintained three luxury vehicles, including a Maserati and two Porsches, according to the U.S. Attorney's Office. The prosecution was led by Assistant U.S. Attorney Alexander Li of the Securities and Commodities Fraud Task Force, with assistance from the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission.

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  1. Version 115 Aug 2026, 17:24current

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