SEC v. Kenneth Thom, No. LR-26381, Southern District of New York (Aug. 21, 2025) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26381 / August 21, 2025 Securities and Exchange Commission v. Thom, No. 25-cv-06909 (S.D.N.Y. filed Aug. 21, 2025) SEC Charges Self-Described Trading “Luminary” in Offering Fraud On August 21, 2025, the Securities and Exchange Commission charged New Jersey resident Kenneth Thom with defrauding investors in connection with an offering fraud through which he allegedly raised over $600,000 from more than fifty investors. According to the SEC’s complaint, Thom, who used the monikers “K Money” and “K$” online, portrayed himself as a trading “luminary,” and a “former Wall Street market maker” who had enjoyed an “illustrious career.” The complaint alleges that, in reality, Thom’s actual experience in the securities industry was limited, and the Financial Industry Regulatory Authority (FINRA) suspended his license in 2011, with that suspension remaining in effect. According to the complaint, Thom solicited investors via a Facebook group that he ran, inviting them to send him funds that he represented would be pooled in one or more shared accounts (the “Shared Account”) and traded on their behalf. The complaint alleges that based on Thom’s representations, investors understood that any profits would be shared, with Thom taking 50% of the profit and the investors sharing the other 50% on a pro rata basis. As alleged in the complaint, Thom raised over $600,000 from more than fifty investors, and misappropriated approximately $235,000 of it, including by spending investor funds on luxury goods and a vacation rental. According to the complaint, in addition to making material misrepresentations about the use of investor funds while soliciting such funds, Thom lied about his trading performance in the so-called Shared Account. The SEC’s complaint, filed in U.S. District Court for the Southern District of New York, charges Thom with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 206 of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The complaint seeks permanent injunctive relief including conduct-based injunctions, disgorgement of all ill-gotten gains and prejudgment interest, and a civil penalty. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York (USAO) today announced criminal charges against Thom. The SEC’s investigation was conducted by Nicholas Karasimas, Doreen Rodriguez, and Sandeep Satwalekar, and supervised by Sheldon L. Pollock, all of the New York Regional Office. The litigation will be led by Mr. Karasimas and Paul G. Gizzi and supervised by Alexander Vasilescu. The SEC appreciates the assistance of the USAO and the FBI.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26381 / August 21, 2025 Securities and Exchange Commission v. Thom, No. 25-cv-06909 (S.D.N.Y. filed Aug. 21, 2025) SEC Charges Self-Described Trading “Luminary” in Offering Fraud On August 21, 2025, the Securities and Exchange Commission charged New Jersey resident Kenneth Thom with defrauding investors in connection with an offering fraud through which he allegedly raised over $600,000 from more than fifty investors. According to the SEC’s complaint, Thom, who used the monikers “K Money” and “K$” online, portrayed himself as a trading “luminary,” and a “former Wall Street market maker” who had enjoyed an “illustrious career.” The complaint alleges that, in reality, Thom’s actual experience in the securities industry was limited, and the Financial Industry Regulatory Authority (FINRA) suspended his license in 2011, with that suspension remaining in effect. According to the complaint, Thom solicited investors via a Facebook group that he ran, inviting them to send him funds that he represented would be pooled in one or more shared accounts (the “Shared Account”) and traded on their behalf. The complaint alleges that based on Thom’s representations, investors understood that any profits would be shared, with Thom taking 50% of the profit and the investors sharing the other 50% on a pro rata basis. As alleged in the complaint, Thom raised over $600,000 from more than fifty investors, and misappropriated approximately $235,000 of it, including by spending investor funds on luxury goods and a vacation rental. According to the complaint, in addition to making material misrepresentations about the use of investor funds while soliciting such funds, Thom lied about his trading performance in the so-called Shared Account. The SEC’s complaint, filed in U.S. District Court for the Southern District of New York, charges Thom with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 206 of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The complaint seeks permanent injunctive relief including conduct-based injunctions, disgorgement of all ill-gotten gains and prejudgment interest, and a civil penalty. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York (USAO) today announced criminal charges against Thom. The SEC’s investigation was conducted by Nicholas Karasimas, Doreen Rodriguez, and Sandeep Satwalekar, and supervised by Sheldon L. Pollock, all of the New York Regional Office. The litigation will be led by Mr. Karasimas and Paul G. Gizzi and supervised by Alexander Vasilescu. The SEC appreciates the assistance of the USAO and the FBI.