‘K Money’ Sentenced to Two Years in Prison for Investment Fraud

Financial influencer and former securities broker Kenneth Thom, known online as “K Money,” has been sentenced to two years in prison for defrauding investors through an investment scheme promoted on social media.

Thom, 42, received his sentence on Tuesday, less than five months after pleading guilty to investment adviser fraud. Prosecutors said he presented himself on Facebook, Instagram and Twitch as a successful trader and Wall Street expert, selling trading courses and investment recommendations to followers.

In late 2023, Thom invited members of a Facebook group to participate in shared trading accounts that he claimed he would manage in exchange for a portion of the profits. According to prosecutors, he ultimately raised more than $800,000 from over 60 investors.

However, Thom invested only about $350,000, using the remaining funds for personal expenses including luxury purchases at Hermès, flights to France and travel in Japan. His trading also suffered losses of more than $250,000, primarily through options trading.

Despite the losses, Thom allegedly posted false performance updates showing substantial gains. In July 2024, for example, he claimed that three shared accounts were profitable for the year, with returns of up to 120%, even though he had already lost roughly one-third of the money invested.

Thom later stopped responding to investors, leaving them unable to recover their funds.

Before becoming a financial influencer, Thom worked as a securities broker and registered with the Financial Industry Regulatory Authority (FINRA) in 2006. He was suspended in 2011 after failing to pay an arbitration award to an investor.

The case highlights growing regulatory concerns surrounding financial influencers who use social media to promote investment products and services.