SEC v. Kenneth Thom, No. 1:25-cv-06909, Southern District of New York (Aug. 21, 2025) — Complaint

Sheldon L. Pollock
Sandeep Satwalekar
Paul G. Gizzi
Nicholas Karasimas
Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
New York Regional Office
100 Pearl Street, Suite 20-100
New York, NY 10004-2616
212-336-0077 (Gizzi)
[email protected]

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

SECURITIES AND EXCHANGE
COMMISSION,

                                             Plaintiff,

                        -against-

KENNETH THOM,

                                             Defendant.

COMPLAINT

25 Civ. _____ (       )

JURY TRIAL DEMANDED

Plaintiff Securities and Exchange Commission (“Commission”), for its Complaint against
Defendant Kenneth Thom (“Thom” or “Defendant”), alleges as follows:
SUMMARY
1. Between approximately February and August 2024 (the “Relevant Period”),
Thom fraudulently raised more than $600,000 from numerous investor victims. After lying to
investors about how he would use their money, Thom stole a substantial portion of it.
2. Over several years, Thom built an online following using the monikers “K
Money” or “K$.” On a website he maintained, Thom described himself as a trading “luminary,”
a “former Wall Street market maker,” and a “beacon of knowledge, guiding and shaping the
destinies of the world’s most elite traders.”

 2
3. In February 2024, Thom began soliciting members of a Facebook group he ran
(the “K$ FB Group”) to send him funds that he represented would be pooled in one or more
shared accounts (the “Shared Account”) and traded on their behalf. While soliciting investors,
Thom made material misstatements concerning how he would use the money investors
contributed, and trading returns he was supposedly achieving.
4. In total, Thom raised at least $615,000 from dozens of investors, raising most of
that money during February and March 2024. Thom pooled investor funds in a bank account he
controlled, transferred a portion of the funds into brokerage accounts, and traded those funds
(without much success), primarily in equity options. Thom also misappropriated approximately
$235,000 of investor funds, either by transferring money to other bank accounts he controlled or
simply using it for personal expenses. Thom spent tens of thousands of dollars on expenses such
as luxury goods in Tokyo, an Airbnb rental in Paris, and everyday items like gas, New York City
subway fare, and groceries.
5. As 2024 went on, and Thom continued to misappropriate investor funds, his posts
on the K$ FB Group became less frequent, and he eventually stopped responding to investors
and the K$ FB Group’s administrators, many of whom were also investors.
VIOLATIONS
6. By virtue of the foregoing conduct and as alleged further herein, Thom has
violated Section 17(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)],
Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)] and
Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5]  , and Sections 206(1), 206(2), and 206(4) of the
Investment Advisers Act of 1940 (“Advisers Act”) [15 U.S.C. §§ 80b-6(1), 80b-6(2), and 80b-
6(4)] and Rule 206(4)-8 thereunder [17 C.F.R. § 275.206(4)-8].

 3
7. Unless Thom is  restrained and enjoined, he will engage in the acts, practices,
transactions, and courses of business set forth in this Complaint or in acts, practices, transactions,
and courses of business of similar type and object.
NATURE OF THE PROCEEDINGS AND RELIEF SOUGHT
8. The Commission brings this action pursuant to the authority conferred upon it by
Securities Act Sections 20(b) and 20(d) [15 U.S.C. §§ 77t(b) and 77t(d)], Exchange Act Section
21(d) [15 U.S.C. § 78u(d)], and Advisers Act Sections 209(d) and 209(e) [15 U.S.C. §§ 80b-9(d)
and 80b-9(e)].
9. The Commission seeks a final judgment: (a) permanently enjoining Thom from
violating the federal securities laws and rules this Complaint alleges he has violated; (b) ordering
Thom to disgorge all ill-gotten gains he received as a result of the violations alleged here and to
pay prejudgment interest thereon, pursuant to Exchange Act Sections 21(d)(3), 21(d)(5), and
21(d)(7) [15 U.S.C. §§ 78u(d)(3), 78u(d)(5), and 78u(d)(7)]; (c) ordering Thom to pay civil
money penalties pursuant to Securities Act Section 20(d) [15 U.S.C. § 77t(d)], Exchange Act
Section 21(d)(3) [15 U.S.C. § 78u(d)(3)], and Advisers Act Section 209(e) [15 U.S.C. § 80b-
9(e)]; (d) permanently prohibiting Thom, directly or indirectly, from participating in the
issuance, purchase, offer, or sale of any security—other than with his own assets and accounts;
(e) permanently prohibiting Thom, directly or indirectly, from acting as or being associated with
any broker, dealer, or investment adviser; and (f) ordering any other and further relief the Court
may deem just and proper.
JURISDICTION AND VENUE
10. This Court has jurisdiction over this action pursuant to Securities Act Section
22(a) [15 U.S.C. § 77v(a)], Exchange Act Section 27 [15 U.S.C. § 78aa], and Advisers Act

 4
Section 214 [15 U.S.C. § 80b-14].
11. Thom, directly and indirectly, has made use of the means or instrumentalities of
interstate commerce or of the mails in connection with the transactions, acts, practices, and
courses of business alleged herein.
12. Venue lies in this District under Securities Act Section 22(a) [15 U.S.C. § 77v(a)],
Exchange Act Section 27 [15 U.S.C. § 78aa], and Advisers Act Section 214 [15 U.S.C. § 80b-
14]. Certain of the acts, practices, transactions, and courses of business alleged in this Complaint
occurred within this District. For instance, Thom resided in this District for some or all of the
Relevant Period, and he made false and misleading statements to investors and misappropriated
investor funds while in this District.
DEFENDANT
13. Thom, age 42, currently lives in Westfield, New Jersey. Thom previously lived in
the Bronx, New York, including during some or all of the Relevant Period. Thom passed the
Series 7 and 63 exams in or about May 2006. Until approximately June 2008, Thom was
associated with five different brokerage firms. In 2011, the Financial Industry Regulatory
Authority (“FINRA”)
1
 suspended Thom’s registration as a broker after he failed to pay damages
awarded in a FINRA arbitration.
FACTS
I. BACKGROUND
A. Thom’s False Online Profile as a Purported Wall Street Veteran and Expert
Trader

14. For several years, Thom has operated websites and social media profiles using the

1
 FINRA is a private American corporation that acts as a self-regulatory organization, or “SRO,” and regulates
member brokerage firms and exchange markets.

 5
monikers “K Money” or “K$.”
15. Across the websites and profiles, Thom sought to portray himself as a skilled,
experienced securities trader and “Wall Street veteran” with financial expertise.
16. As alleged in more detail below, Thom would later use the online image he had
created, and the following he gathered, to perpetrate his fraudulent scheme.
17. Some of Thom’s websites and social media profiles are still active, including
“kmoneygroup.com.”  This website portrays Thom as a skilled and experienced securities trader.
18. The homepage displays a mysterious looking, computer-generated image of a
person wearing a Venetian mask and a golden robe, studying financial data on a monitor (see
screenshot below).

19.  Under a heading titled “The Wall Street Veteran,” the homepage touts Thom’s
purported financial expertise as follows:
In the fast-paced arena of financial markets, where fortunes are made and lost in

 6
the blink of an eye, there exists a luminary whose name resonates with
unparallelled expertise and wisdom. Known to most as K$, a former Wall Street
market maker who has transcended the bustling trading floors to become the
beacon of knowledge, guiding and shaping the destinies of the world’s most elite
traders.

With an illustrious career that has weathered market storms and conquered financial
peaks, Mr. K$ has now taken on a new mission: to unlock the secrets of his success and
bestow them upon a select group of traders eager to ascend to greatness. In the hallowed
halls of his teachings, the world’s finest traders gather to harness the power of his insights
and shape their own legacies in the thrilling world of finance. Welcome to the realm of
K$ Group, where mastery meets mentorship, and the pursuit of excellence knows no
bounds.

20. Thom sought to use his self-created image as a Wall Street veteran and expert
trader to generate revenue through multiple channels.
21. For example, Thom streamed video content via Twitch, a popular live-streaming
service, where he discussed the markets, described his trading strategy, and interacted with
followers.
22. In addition, Thom offered one-on-one trading lessons via his website. Thom
offered multiple program options, including, for example, six-months of weekly trading lessons
for $10,000.
23. Thom also offered a subscription-based service in which he sent periodic trade
recommendations. In one such subscription plan, subscribers paid $299 a month to receive up to
four daily options trading recommendations.
24. Simultaneously, Thom built a following on various other social media platforms.
For instance, Thom maintained the K$ FB Group on Facebook, and he had more than 40,000
followers on Instagram.
B. Thom’s Actual Industry Experience

25. In contrast with the digital image he sought to create, Thom’s actual experience in

 7
the securities industry was limited.
26. In particular, Thom was associated with five different brokerage firms during the
roughly two-year period between May 2006 and June 2008. In some instances, Thom was only
associated with a given brokerage firm for a month or two.
27. In May 2009, Thom was named in a FINRA arbitration proceeding alleging
misconduct, including breach of fiduciary duty, misrepresentation, fraud, and deception. Matter
of Holloway v. Thom, Arbitration No. 09-02623 (FINRA Dispute Resolution). Thom failed to
appear in this arbitration. As a result, in November 2010, a FINRA arbitral panel found that
Thom was liable for compensatory damages in the amount of $38,902. In January 2011, after he
failed to pay the amount ordered, FINRA suspended Thom’s registration. The FINRA
suspension remains in effect.
2

28. Thom’s limited and dated experience in the securities industry stands in contrast
with the image he sought to portray online and which he relied on to solicit investors. As
described further below, Thom did not disclose the truth about his background to the investors he
solicited.
II. THOM’S SOLICITATION OF INVESTORS

29. In December 2023, Thom first gauged investor interest in contributing to the
Shared Account. Specifically, Thom posted a poll on the K$ FB Group asking whether anyone
would be interest in a “subscription where it’s a 10K buy in, it trades [E-mini S&P 500 futures
contracts],” where Thom would “keep 50% of profit.” Approximately 100 people voted in this
poll.

2
 Under FINRA Rule 8311, a person “subject to suspension” is prohibited from being associated with any FINRA
member firm “in any capacity that is inconsistent with the sanction imposed or disqualified status, including a
clerical or ministerial capacity.”

 8
30. Shortly thereafter, in early February 2024, Thom began actively soliciting
investors on the K$ FB Group.
31. Specifically, on February 2, 2024, Thom posted a message with more detailed
information about the mechanics of the Shared Account, how individuals could invest, and how
he planned to trade.
32. In this post, Thom said that the minimum deposit would be $10,000 (with a few
slots available at $5,000). The deposits, however, had to be made in multiple increments, in
amounts less than $10,000 “to avoid the IRS flagging it.”
33. Thom also posted that he would have “free reign to trade anything [he] wanted,
whenever [he] wanted.” Thom described certain fees, like a $50 fee for “paperwork,” and fees
for money sent by wire. Thom explained that he would keep 50% of the profit “to cover taxes
and the work.”
34. Two investors who were also K$ FB Group moderators had already sent funds on
January 29, 2024, but additional investors began sending funds after Thom’s February 2, 2024
post.
35. For example, Thom raised approximately $2,500 that same day, and on February
5, 2024, he raised more than $50,000.
36. Thom continued to solicit investors through posts on the K$ FB Group throughout
February and March 2024, and individuals continued to send funds to Thom.
37. On March 18, 2024, Thom began posting messages about another purported
account, which he referred to as an “options swing shared account” and that he said would begin
in April 2024. Consistent with his earlier descriptions, Thom represented that he would equally
split profits from this supposed account with investors, with Thom receiving 50% of the profits

 9
and the investors receiving the remaining 50%.  Thom’s post also noted that investors could
withdraw from this account once a month.
38. On March 22, 2024, Thom posted another solicitation message, telling the group
that “April [was] coming fast for the [options] swing [shared] account.” Thom’s post also
referenced his “50% cut” of the profit and investors receiving “their [percentage] calculation of
the total pot.”
39. On March 30, 2024, Thom posted a message explaining that he would be focusing
more on the Shared Accounts, and that there would be three supposed accounts: (i) a “Swing
Trade” account, which Thom said would trade options; (ii) a “Day and Swing Trade” account,
which Thom said would trade futures and options; and (iii) a “YOLO” (an acronym meaning
“you only live once”) account, which Thom said would trade options expiring that day, an hour
before market close.
40. As alleged more fully below, despite Thom referring to three separate accounts in
his March 30, 2024 post, and in subsequent investor updates, Thom did not, in fact, place
investor funds into three separate accounts that utilized different trading strategies.
41. As a result, and for the sake of clarity, this Complaint generally refers to the
Shared Account as the vehicle through which Thom pooled investor funds, regardless of what
Thom subsequently did with the funds.
42. Most of the investor funds were sent in February and March 2024, with smaller
amounts sent in April and May, and a final transfer in August.
43. In some cases, investors wired money directly to a bank account in the name of
“MRK Mgt LLC” (the “MRK Account”), an LLC entity that Thom controlled. In other cases,
investors sent money to Thom through payment apps, and he then transferred the money to the

 10
MRK Account.
44. In total, Thom raised at least $615,000 from more than fifty investors.
45. Based on Thom’s representations, investors understood that their money would be
pooled, and any profits would be shared, with Thom taking 50% of the profit and the investors
sharing the other 50%, on a pro rata basis.
46. Thom’s representations to investors led them to understand that any profits
realized in the Shared Account would be based solely on Thom’s efforts. For example, Thom
represented that he maintained complete control over the Shared Account and that he had
complete discretion over what to trade, and that his share of the profits was to compensate him
for the “work” he was doing.
47. Thom did, in fact, exercise complete and sole control over the Shared Account,
and exercised complete discretion over purchasing and selling securities.
48. Because the Shared Account was a collective investment vehicle that would
primarily invest in securities, the Shared Account is a pooled investment vehicle pursuant to
Advisers Act Rule 206(4)-8(b) [17 C.F.C. § 275.206(4)-8(b)].
III. THOM’S UNSUCCESSFUL SECURITIES TRADING
49. In March and April 2024, Thom transferred a portion of the investor funds from
the MRK Account into two brokerage accounts, ostensibly for securities trading as promised to
investors.
50. Specifically, Thom transferred $125,000 in one brokerage account (“Brokerage
Account A”) and $50,000 in another (“Brokerage Account B”).
51. In addition, Thom deposited a total of $175,000 into Brokerage Account A from
his personal accounts at various times between March and August 2024.

 11
52. In total, Thom deposited at most $350,000 into brokerage accounts for securities
trading, significantly less than the at least $615,000 he had raised from investors for the purpose
of trading in the Shared Account.
53. On the whole, Thom’s securities trading was unprofitable, as described below.
54. In Brokerage Account A, Thom primarily traded short-dated options on popular
exchange-traded funds that are designed to track market indices, such as the SPDR S&P 500
ETF Trust (SPY) and Invesco QQQ Trust, Series 1 (QQQ).
55. In Brokerage Account A, Thom posted negative trading returns in each month
from March through October 2024, until the account was left with a de minimis balance.
56. In Brokerage Account B, Thom primarily traded slightly longer-dated options on
a wider range of securities, as compared to the activity in Brokerage Account A.
57. Thom posted relatively small monthly gains or losses in Brokerage Account B
and, as of early 2025, the account balance was approximately $75,000, reflecting a total gain of
approximately $25,000.
IV. THOM’S MATERIALLY FALSE OR MISLEADING STATEMENTS
58. The basic premise of Thom’s solicitation was that he would place investor funds
into the Shared Account, trade on investors’ behalf, and share any profits with them.
59. This description, repeated across multiple representations to investors, was
materially false.
60. As alleged below, Thom misappropriated a significant portion of investor funds,
rather than trading it on their behalf.
61. Indeed, Thom continued to solicit investors even after he had started to
misappropriate funds.
62. Thom knew or recklessly disregarded, and in addition should have known, that

 12
the statements he made about how the investment funds would be used were materially false.
63. As alleged above, Thom had complete control over investor funds, exercised sole
discretion over the Shared Account, and made the decision to actively misappropriate funds.
64. In addition, Thom provided purported “updates” on the performance of the Shared
Account that contained materially false or misleading statements concerning his trading
performance.
65. Some of these “updates” were included as part of Thom’s investor solicitation
posts.
66. For example, on March 5, 2024, Thom posted an update on the K$ FB Group that
falsely stated that he “did [$]4650 in gains today in the shared account.”
67. In reality, Thom’s trading on that date resulted in a gain of only a few hundred
dollars.
68. As another example, in a post on the K$ FB Group dated either March 20 or 21,
2024, while further soliciting investors to contribute to the Shared Account, Thom falsely stated
that he was “[u]p over [$]26k in the shared today.”
69. In reality, Thom’s trading on March 20, 2024 resulted in a gain of approximately
$2,700, and his trading on March 21, 2024 resulted in a loss of approximately $12,370. In any
event, Thom’s claim that he had made $26,000 was false.
70. Thom knowingly or with reckless disregard, and negligently, continued to make
false statements about performance as time went on, misleading investors as to the performance
of their investment.
71. For example, on July 3, 2024, Thom posted purported year-to-date returns for the
three purportedly separate accounts within the Shared Account: “Swing +32%, DT +4%, YOLO

 13
+120%.”
72. But by this point, Thom had lost almost 30% of the investor funds that had been
deposited in Brokerage Accounts A and B.
73. Thom knew or recklessly disregarded, and should have known, that these
statements about trading performance were false because he alone controlled the Shared Account
(and Brokerage Accounts A and B) and knew or recklessly disregarded what the actual
performance was.
74. Finally, Thom’s presentation of his background was materially misleading.
75. Thom described his purported financial expertise on various websites, including
several that were often linked to on the K$ FB Group.
76. As described above, for example, Thom referred on these websites to his
“illustrious career” as a Wall Street market maker.
77. This was materially misleading, because, as alleged above, Thom’s real-world
experience in the financial industry was relatively brief, he had not worked for a brokerage firm
for more than fifteen years, and he had been suspended by FINRA in 2011.
78. Thom knew or recklessly disregarded, and should have known, that such
descriptions of his background were false and misleading because he knew the true facts about
his real-world experience in the financial industry.
V. THOM MISAPPROPRIATED INVESTOR FUNDS
79. As alleged above, approximately $615,000 of investor funds were deposited
directly or indirectly into the MRK Account.
80. Of that amount, Thom transferred at most $350,000 into Brokerage Accounts A
and B for trading.

 14
81. Thom misappropriated most of the remainder of the investor funds.
82. Specifically, Thom transferred approximately $158,560 from the MRK Account
to other accounts he controlled, and did not then deposit that money into a brokerage account for
trading.
83. In addition, Thom used approximately $76,856 of investor funds in the MRK
Account for purely personal expenses.
84. These personal expenses included: (a) $6,377 at a luxury goods store in Tokyo;
(b) $6,026 for an Airbnb rental, which coincided with Thom telling investors he was in Paris for
the 2024 Summer Olympics; (c) $2,724 at Hermès, a luxury goods store; (d) $1,618 at a Korean
barbeque restaurant; and (e) thousands of dollars on everyday expenses like gas, the NYC
subway, and groceries.
85. In total, Thom misappropriated approximately $235,416 from investors.
VI. THOM EVADED INVESTORS
86. On June 27, 2024, Thom posted on the K$ FB Group, advising that anyone who
wanted to withdraw from the purported “DT” [Day and Swing Trade] account needed to let him
know by the following day because, otherwise, “everything is rolling into [end of year],”
suggesting that investors would not be able to otherwise withdraw any funds until the end of
2024.
87. Several individuals responded to this post seeking to withdraw their funds and, in
the weeks and months that followed, sought information about the status of their withdrawal
requests
88. Presumably in response to investor requests to withdraw their funds, Thom sent
approximately $29,000 to five investors over the course of one week in late July 2024.

 15
89. Beyond that, Thom did not return any other funds to investors.
90. During this time, Thom generally responded to investor inquiries and concerns
with a range of deflections and excuses.
91. Across multiple posts on the K$ FB Group, Thom blamed the investors for delays
in processing their withdrawals by, for example,  chiding them for not providing the paperwork
he deemed necessary.
92. At another point, members of the K$ FB Group were told that Thom purportedly
could not communicate because he had been banned from Facebook.
93. As 2024 continued, Thom became less and less active on the K$ FB Group and
eventually stopped posting entirely.
94. One investor (“Investor A”), who had been friends with Thom prior to investing,
attempted to communicate with Thom by text message.
95. In January 2025, when Investor A told Thom that people were worried about their
money, Thom said that he was in Japan “dealing with the aftermath of the earthquake” and did
not want to hear about worried investors when he was “dealing with situations.”
96. In fact, there are no reports of an earthquake in Japan in January 2025 that caused
any significant damage or injuries.
97. Rather than “dealing with” a natural disaster, Thom was on an international jaunt
using stolen investor funds.
98. In February 2025, Investor A pointedly asked whether Thom was going to “ditch
[Investor A] like that and run off with [Investor A’s money] after all these years.”  Thom did not
reply.

 16
FIRST CLAIM FOR RELIEF
Violations of Securities Act Section 17(a)

99. The Commission re-alleges and incorporates by reference here the allegations in
paragraphs 1 through 98.
100. Thom, directly or indirectly, singly or in concert, in the offer or sale of securities
and by the use of the means or instruments of transportation or communication in interstate
commerce or the mails: (1) knowingly or recklessly has employed one or more devices, schemes
or artifices to defraud, (2) knowingly, recklessly, or negligently has obtained money or property
by means of one or more untrue statements of a material fact or omissions of a material fact
necessary in order to make the statements made, in light of the circumstances under which they
were made, not misleading, and/or (3) knowingly, recklessly, or negligently has engaged in one
or more transactions, practices, or courses of business which operated or would operate as a
fraud or deceit upon the purchaser.
101. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, has
violated and, unless enjoined, will again violate Securities Act Section 17(a) [15 U.S.C.
§ 77q(a)].
SECOND CLAIM FOR RELIEF
Violations of Exchange Act Section 10(b) and Rule 10b-5 Thereunder

102. The Commission re-alleges and incorporates by reference here the allegations in
paragraphs 1 through 98.
103. Thom, directly or indirectly, singly or in concert, in connection with the purchase
or sale of securities and by the use of means or instrumentalities of interstate commerce, or the
mails, or the facilities of a national securities exchange, knowingly or recklessly has: (i)
employed one or more devices, schemes, or artifices to defraud, (ii) made one or more untrue

 17
statements of a material fact or omitted to state one or more material facts necessary in order to
make the statements made, in light of the circumstances under which they were made, not
misleading, and/or (iii) engaged in one or more acts, practices, or courses of business which
operated or would operate as a fraud or deceit upon other persons.
104. By reason of the foregoing, Defendant, directly or indirectly, singly or in concert,
has violated and, unless enjoined, will again violate Exchange Act Section 10(b) [15 U.S.C.
§ 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].
THIRD CLAIM FOR RELIEF
Violations of Advisers Act Sections 206(1) and (2)

105. The Commission re-alleges and incorporates by reference here the allegations in
paragraphs 1 through 98.
106. At all relevant times, Thom was an investment adviser under Advisers Act Section
202(11) [15 U.S.C. § 80b-2(11)].
107. Thom, by use of the mails or any means or instrumentality of interstate
commerce, directly or indirectly has: (i) knowingly or recklessly employed one or more devices,
schemes, or artifices to defraud any client or prospective client, and/or (ii) knowingly, recklessly,
or negligently engaged in one or more transactions, practices, and courses of business which
operated or would operate as a fraud or deceit upon any client or prospective client.
108. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, has
violated and, unless enjoined, will again violate Advisers Act Sections 206(1) and (2) [15 U.S.C.
§§ 80b-6(1) and 80b-6(2)].

 18
FOURTH CLAIM FOR RELIEF
Violations of Advisers Act Section 206(4) and Rule 206(4)-8(a) Thereunder

109. The Commission re-alleges and incorporates by reference here the allegations in
paragraphs 1 through 98.
110. At all relevant times, Thom w as an investment adviser, under Advisers Act
Section 202(11) [15 U.S.C. § 80b-2(11)], to a pooled investment vehicle, as defined in Rule
206(4)-8(b) [17 C.F.R. § 275.206(4)-8(b)].
111. Thom, by use of the mails or any means or instrumentality of interstate
commerce, directly or indirectly, knowingly, recklessly, or negligently has: ( i) made one or more
untrue statements of a material fact or omitted to state one or more material facts necessary in
order to make the statements made, in light of the circumstances under which they were made,
not misleading, to any investor or prospective investor in the pooled investment vehicle, and/or
(ii) engaged in one or more acts, practices, or courses of business that were fraudulent, deceptive,
or manipulative, with respect to any investor or prospective investor in the pooled investment
vehicle.
112. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, have
violated and, unless enjoined, will again violate Advisers Act Section 206(4) [15 U.S.C. § 80b-
6(4)] and Rule 206(4)-8(a)(2) thereunder [17 C.F.R. § 275.206(4)-8(a)(2)].
PRAYER FOR RELIEF
 WHEREFORE, the Commission respectfully requests that the Court enter a Final
Judgment:
I.
Permanently enjoining Thom and his agents, servants, employees and attorneys and all
persons in active concert or participation with any of them from violating, directly or indirectly,

 19
Securities Act Section 17(a) [15 U.S.C. § 77q(a)], Exchange Act Section 10(b) [15 U.S.C.
§ 78j(b)], and Rule 10b-5(b) thereunder [17 C.F.R. § 240.10b-5(b)], and Advisers Act Sections
206(1), 206(2) and 206(4) [15 U.S.C. §§ 80b-6(1), 80b-6(2), and 80b-6(4)] and Rule 206(4)-8
thereunder [17 C.F.R. § 275.206(4)-8];
II.
Ordering Thom to disgorge all ill-gotten gains they received directly or indirectly, with
pre-judgment interest thereon, as a result of the alleged violations, pursuant to Exchange Act
Sections 21(d)(3), 21(d)(5), and 21(d)(7) [15 U.S.C. §§ 78u(d)(3), 78u(d)(5), and 78u(d)(7)];
III.
Ordering Thom to pay civil monetary penalties under Securities Act Section 20(d) [15
U.S.C. § 77t(d)], Exchange Act Section 21(d)(3) [15 U.S.C. § 78u(d)(3)], and Advisers Act
Section 209(e) [15 U.S.C. § 80b-9(e)];
IV.
Permanently prohibiting Thom from participating, directly or indirectly, including, but
not limited to, through any entity owned or controlled by him, in the issuance, purchase, offer, or
sale of any security, provided, however, that such injunction shall not prevent him from
purchasing or selling securities for his own personal accounts;
V.
Permanently prohibiting Thom from, directly or indirectly, acting as or being associated
with any broker, dealer, or investment adviser, provided that for purposes of this injunction, (a) a
person is associated with a broker or dealer if such person is a partner, officer, director, or branch
manager of such broker or dealer (or occupies a similar status or performs similar functions),
directly or indirectly controls, is controlled by, or is under common control with such broker or

 20
dealer, or is an employee of such broker or dealer, and (b) a person is associated with an
investment adviser if such person is a partner, officer, or director of an investment adviser (or
performs similar functions), or directly or indirectly controls or is controlled by such investment
adviser;
VI.
Granting any other and further relief this Court may deem just and proper.
JURY DEMAND
 The Commission demands a trial by jury.
Dated:  New York, New York
August 21, 2025
/s/ Paul G. Gizzi_________________________
Sheldon L. Pollock
Sandeep Satwalekar
Paul G. Gizzi
Nicholas Karasimas
Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
New York Regional Office
100 Pearl Street, Suite 20-100
New York, NY 10004-2616
212-336-0077 (Gizzi)
[email protected]

Sheldon L. Pollock 
Sandeep Satwalekar  
Paul G. Gizzi  
Nicholas Karasimas  
Attorneys for Plaintiff 
SECURITIES AND EXCHANGE COMMISSION 
New York Regional Office 
100 Pearl Street, Suite 20-100 
New York, NY 10004-2616 
212-336-0077 (Gizzi)  
[email protected] 
 
UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 
 
SECURITIES AND EXCHANGE 
COMMISSION, 
 
                                             Plaintiff, 
 
                        -against- 
 
KENNETH THOM, 
  
                                             Defendant.  
 

 
 
COMPLAINT 

   
25 Civ. _____ (       ) 

 
   

JURY TRIAL DEMANDED 
  

           
          

 
Plaintiff Securities and Exchange Commission (“Commission”), for its Complaint against 

Defendant Kenneth Thom (“Thom” or “Defendant”), alleges as follows: 

SUMMARY 

1. Between approximately February and August 2024 (the “Relevant Period”), 

Thom fraudulently raised more than $600,000 from numerous investor victims. After lying to 

investors about how he would use their money, Thom stole a substantial portion of it.   

2. Over several years, Thom built an online following using the monikers “K 

Money” or “K$.” On a website he maintained, Thom described himself as a trading “luminary,” 

a “former Wall Street market maker,” and a “beacon of knowledge, guiding and shaping the 

destinies of the world’s most elite traders.” 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 1 of 20



 2 

3. In February 2024, Thom began soliciting members of a Facebook group he ran 

(the “K$ FB Group”) to send him funds that he represented would be pooled in one or more 

shared accounts (the “Shared Account”) and traded on their behalf. While soliciting investors, 

Thom made material misstatements concerning how he would use the money investors 

contributed, and trading returns he was supposedly achieving.  

4. In total, Thom raised at least $615,000 from dozens of investors, raising most of 

that money during February and March 2024. Thom pooled investor funds in a bank account he 

controlled, transferred a portion of the funds into brokerage accounts, and traded those funds 

(without much success), primarily in equity options. Thom also misappropriated approximately 

$235,000 of investor funds, either by transferring money to other bank accounts he controlled or 

simply using it for personal expenses. Thom spent tens of thousands of dollars on expenses such 

as luxury goods in Tokyo, an Airbnb rental in Paris, and everyday items like gas, New York City 

subway fare, and groceries.   

5. As 2024 went on, and Thom continued to misappropriate investor funds, his posts 

on the K$ FB Group became less frequent, and he eventually stopped responding to investors 

and the K$ FB Group’s administrators, many of whom were also investors.   

VIOLATIONS 

6. By virtue of the foregoing conduct and as alleged further herein, Thom has 

violated Section 17(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)], 

Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)] and 

Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5], and Sections 206(1), 206(2), and 206(4) of the 

Investment Advisers Act of 1940 (“Advisers Act”) [15 U.S.C. §§ 80b-6(1), 80b-6(2), and 80b-

6(4)] and Rule 206(4)-8 thereunder [17 C.F.R. § 275.206(4)-8].   

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 2 of 20



 3 

7. Unless Thom is restrained and enjoined, he will engage in the acts, practices, 

transactions, and courses of business set forth in this Complaint or in acts, practices, transactions, 

and courses of business of similar type and object.   

NATURE OF THE PROCEEDINGS AND RELIEF SOUGHT 

8. The Commission brings this action pursuant to the authority conferred upon it by 

Securities Act Sections 20(b) and 20(d) [15 U.S.C. §§ 77t(b) and 77t(d)], Exchange Act Section 

21(d) [15 U.S.C. § 78u(d)], and Advisers Act Sections 209(d) and 209(e) [15 U.S.C. §§ 80b-9(d) 

and 80b-9(e)].  

9. The Commission seeks a final judgment: (a) permanently enjoining Thom from 

violating the federal securities laws and rules this Complaint alleges he has violated; (b) ordering 

Thom to disgorge all ill-gotten gains he received as a result of the violations alleged here and to 

pay prejudgment interest thereon, pursuant to Exchange Act Sections 21(d)(3), 21(d)(5), and 

21(d)(7) [15 U.S.C. §§ 78u(d)(3), 78u(d)(5), and 78u(d)(7)]; (c) ordering Thom to pay civil 

money penalties pursuant to Securities Act Section 20(d) [15 U.S.C. § 77t(d)], Exchange Act 

Section 21(d)(3) [15 U.S.C. § 78u(d)(3)], and Advisers Act Section 209(e) [15 U.S.C. § 80b-

9(e)]; (d) permanently prohibiting Thom, directly or indirectly, from participating in the 

issuance, purchase, offer, or sale of any security—other than with his own assets and accounts; 

(e) permanently prohibiting Thom, directly or indirectly, from acting as or being associated with 

any broker, dealer, or investment adviser; and (f) ordering any other and further relief the Court 

may deem just and proper.  

JURISDICTION AND VENUE 

10. This Court has jurisdiction over this action pursuant to Securities Act Section 

22(a) [15 U.S.C. § 77v(a)], Exchange Act Section 27 [15 U.S.C. § 78aa], and Advisers Act 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 3 of 20



 4 

Section 214 [15 U.S.C. § 80b-14].  

11. Thom, directly and indirectly, has made use of the means or instrumentalities of 

interstate commerce or of the mails in connection with the transactions, acts, practices, and 

courses of business alleged herein. 

12. Venue lies in this District under Securities Act Section 22(a) [15 U.S.C. § 77v(a)], 

Exchange Act Section 27 [15 U.S.C. § 78aa], and Advisers Act Section 214 [15 U.S.C. § 80b-

14]. Certain of the acts, practices, transactions, and courses of business alleged in this Complaint 

occurred within this District. For instance, Thom resided in this District for some or all of the 

Relevant Period, and he made false and misleading statements to investors and misappropriated 

investor funds while in this District. 

DEFENDANT 

13. Thom, age 42, currently lives in Westfield, New Jersey. Thom previously lived in 

the Bronx, New York, including during some or all of the Relevant Period. Thom passed the 

Series 7 and 63 exams in or about May 2006. Until approximately June 2008, Thom was 

associated with five different brokerage firms. In 2011, the Financial Industry Regulatory 

Authority (“FINRA”)1 suspended Thom’s registration as a broker after he failed to pay damages 

awarded in a FINRA arbitration.   

FACTS 

I. BACKGROUND 

A. Thom’s False Online Profile as a Purported Wall Street Veteran and Expert 
Trader 

 
14. For several years, Thom has operated websites and social media profiles using the 

 
1 FINRA is a private American corporation that acts as a self-regulatory organization, or “SRO,” and regulates 
member brokerage firms and exchange markets.   

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 4 of 20



 5 

monikers “K Money” or “K$.” 

15. Across the websites and profiles, Thom sought to portray himself as a skilled, 

experienced securities trader and “Wall Street veteran” with financial expertise.  

16. As alleged in more detail below, Thom would later use the online image he had 

created, and the following he gathered, to perpetrate his fraudulent scheme.  

17. Some of Thom’s websites and social media profiles are still active, including 

“kmoneygroup.com.” This website portrays Thom as a skilled and experienced securities trader. 

18. The homepage displays a mysterious looking, computer-generated image of a 

person wearing a Venetian mask and a golden robe, studying financial data on a monitor (see 

screenshot below). 

 

19.  Under a heading titled “The Wall Street Veteran,” the homepage touts Thom’s 

purported financial expertise as follows: 

In the fast-paced arena of financial markets, where fortunes are made and lost in 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 5 of 20



 6 

the blink of an eye, there exists a luminary whose name resonates with 
unparallelled expertise and wisdom. Known to most as K$, a former Wall Street 
market maker who has transcended the bustling trading floors to become the 
beacon of knowledge, guiding and shaping the destinies of the world’s most elite 
traders.  
 
With an illustrious career that has weathered market storms and conquered financial 
peaks, Mr. K$ has now taken on a new mission: to unlock the secrets of his success and 
bestow them upon a select group of traders eager to ascend to greatness. In the hallowed 
halls of his teachings, the world’s finest traders gather to harness the power of his insights 
and shape their own legacies in the thrilling world of finance. Welcome to the realm of 
K$ Group, where mastery meets mentorship, and the pursuit of excellence knows no 
bounds. 

 
20. Thom sought to use his self-created image as a Wall Street veteran and expert 

trader to generate revenue through multiple channels.  

21. For example, Thom streamed video content via Twitch, a popular live-streaming 

service, where he discussed the markets, described his trading strategy, and interacted with 

followers.  

22. In addition, Thom offered one-on-one trading lessons via his website. Thom 

offered multiple program options, including, for example, six-months of weekly trading lessons 

for $10,000. 

23. Thom also offered a subscription-based service in which he sent periodic trade 

recommendations. In one such subscription plan, subscribers paid $299 a month to receive up to 

four daily options trading recommendations.   

24. Simultaneously, Thom built a following on various other social media platforms. 

For instance, Thom maintained the K$ FB Group on Facebook, and he had more than 40,000 

followers on Instagram.   

B. Thom’s Actual Industry Experience  
 
25. In contrast with the digital image he sought to create, Thom’s actual experience in 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 6 of 20



 7 

the securities industry was limited.  

26. In particular, Thom was associated with five different brokerage firms during the 

roughly two-year period between May 2006 and June 2008. In some instances, Thom was only 

associated with a given brokerage firm for a month or two.  

27. In May 2009, Thom was named in a FINRA arbitration proceeding alleging 

misconduct, including breach of fiduciary duty, misrepresentation, fraud, and deception. Matter 

of Holloway v. Thom, Arbitration No. 09-02623 (FINRA Dispute Resolution). Thom failed to 

appear in this arbitration. As a result, in November 2010, a FINRA arbitral panel found that 

Thom was liable for compensatory damages in the amount of $38,902. In January 2011, after he 

failed to pay the amount ordered, FINRA suspended Thom’s registration. The FINRA 

suspension remains in effect.2 

28. Thom’s limited and dated experience in the securities industry stands in contrast 

with the image he sought to portray online and which he relied on to solicit investors. As 

described further below, Thom did not disclose the truth about his background to the investors he 

solicited.   

II. THOM’S SOLICITATION OF INVESTORS  
 

29. In December 2023, Thom first gauged investor interest in contributing to the 

Shared Account. Specifically, Thom posted a poll on the K$ FB Group asking whether anyone 

would be interest in a “subscription where it’s a 10K buy in, it trades [E-mini S&P 500 futures 

contracts],” where Thom would “keep 50% of profit.” Approximately 100 people voted in this 

poll.  

 
2 Under FINRA Rule 8311, a person “subject to suspension” is prohibited from being associated with any FINRA 
member firm “in any capacity that is inconsistent with the sanction imposed or disqualified status, including a 
clerical or ministerial capacity.”   

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 7 of 20



 8 

30. Shortly thereafter, in early February 2024, Thom began actively soliciting 

investors on the K$ FB Group. 

31. Specifically, on February 2, 2024, Thom posted a message with more detailed 

information about the mechanics of the Shared Account, how individuals could invest, and how 

he planned to trade.  

32. In this post, Thom said that the minimum deposit would be $10,000 (with a few 

slots available at $5,000). The deposits, however, had to be made in multiple increments, in 

amounts less than $10,000 “to avoid the IRS flagging it.”  

33. Thom also posted that he would have “free reign to trade anything [he] wanted, 

whenever [he] wanted.” Thom described certain fees, like a $50 fee for “paperwork,” and fees 

for money sent by wire. Thom explained that he would keep 50% of the profit “to cover taxes 

and the work.”   

34. Two investors who were also K$ FB Group moderators had already sent funds on 

January 29, 2024, but additional investors began sending funds after Thom’s February 2, 2024 

post.     

35. For example, Thom raised approximately $2,500 that same day, and on February 

5, 2024, he raised more than $50,000.   

36. Thom continued to solicit investors through posts on the K$ FB Group throughout 

February and March 2024, and individuals continued to send funds to Thom.  

37. On March 18, 2024, Thom began posting messages about another purported 

account, which he referred to as an “options swing shared account” and that he said would begin 

in April 2024. Consistent with his earlier descriptions, Thom represented that he would equally 

split profits from this supposed account with investors, with Thom receiving 50% of the profits 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 8 of 20



 9 

and the investors receiving the remaining 50%.  Thom’s post also noted that investors could 

withdraw from this account once a month.    

38. On March 22, 2024, Thom posted another solicitation message, telling the group 

that “April [was] coming fast for the [options] swing [shared] account.” Thom’s post also 

referenced his “50% cut” of the profit and investors receiving “their [percentage] calculation of 

the total pot.” 

39. On March 30, 2024, Thom posted a message explaining that he would be focusing 

more on the Shared Accounts, and that there would be three supposed accounts: (i) a “Swing 

Trade” account, which Thom said would trade options; (ii) a “Day and Swing Trade” account, 

which Thom said would trade futures and options; and (iii) a “YOLO” (an acronym meaning 

“you only live once”) account, which Thom said would trade options expiring that day, an hour 

before market close. 

40. As alleged more fully below, despite Thom referring to three separate accounts in 

his March 30, 2024 post, and in subsequent investor updates, Thom did not, in fact, place 

investor funds into three separate accounts that utilized different trading strategies.  

41. As a result, and for the sake of clarity, this Complaint generally refers to the 

Shared Account as the vehicle through which Thom pooled investor funds, regardless of what 

Thom subsequently did with the funds.   

42. Most of the investor funds were sent in February and March 2024, with smaller 

amounts sent in April and May, and a final transfer in August.   

43. In some cases, investors wired money directly to a bank account in the name of 

“MRK Mgt LLC” (the “MRK Account”), an LLC entity that Thom controlled. In other cases, 

investors sent money to Thom through payment apps, and he then transferred the money to the 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 9 of 20



 10 

MRK Account.   

44. In total, Thom raised at least $615,000 from more than fifty investors.  

45. Based on Thom’s representations, investors understood that their money would be 

pooled, and any profits would be shared, with Thom taking 50% of the profit and the investors 

sharing the other 50%, on a pro rata basis. 

46. Thom’s representations to investors led them to understand that any profits 

realized in the Shared Account would be based solely on Thom’s efforts. For example, Thom 

represented that he maintained complete control over the Shared Account and that he had 

complete discretion over what to trade, and that his share of the profits was to compensate him 

for the “work” he was doing. 

47. Thom did, in fact, exercise complete and sole control over the Shared Account, 

and exercised complete discretion over purchasing and selling securities. 

48. Because the Shared Account was a collective investment vehicle that would 

primarily invest in securities, the Shared Account is a pooled investment vehicle pursuant to 

Advisers Act Rule 206(4)-8(b) [17 C.F.C. § 275.206(4)-8(b)]. 

III. THOM’S UNSUCCESSFUL SECURITIES TRADING  

49. In March and April 2024, Thom transferred a portion of the investor funds from 

the MRK Account into two brokerage accounts, ostensibly for securities trading as promised to 

investors.  

50. Specifically, Thom transferred $125,000 in one brokerage account (“Brokerage 

Account A”) and $50,000 in another (“Brokerage Account B”). 

51. In addition, Thom deposited a total of $175,000 into Brokerage Account A from 

his personal accounts at various times between March and August 2024. 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 10 of 20



 11 

52. In total, Thom deposited at most $350,000 into brokerage accounts for securities 

trading, significantly less than the at least $615,000 he had raised from investors for the purpose 

of trading in the Shared Account.   

53. On the whole, Thom’s securities trading was unprofitable, as described below.  

54. In Brokerage Account A, Thom primarily traded short-dated options on popular 

exchange-traded funds that are designed to track market indices, such as the SPDR S&P 500 

ETF Trust (SPY) and Invesco QQQ Trust, Series 1 (QQQ).  

55. In Brokerage Account A, Thom posted negative trading returns in each month 

from March through October 2024, until the account was left with a de minimis balance.  

56. In Brokerage Account B, Thom primarily traded slightly longer-dated options on 

a wider range of securities, as compared to the activity in Brokerage Account A.  

57. Thom posted relatively small monthly gains or losses in Brokerage Account B 

and, as of early 2025, the account balance was approximately $75,000, reflecting a total gain of 

approximately $25,000. 

IV. THOM’S MATERIALLY FALSE OR MISLEADING STATEMENTS  

58. The basic premise of Thom’s solicitation was that he would place investor funds 

into the Shared Account, trade on investors’ behalf, and share any profits with them. 

59. This description, repeated across multiple representations to investors, was 

materially false.  

60. As alleged below, Thom misappropriated a significant portion of investor funds, 

rather than trading it on their behalf. 

61. Indeed, Thom continued to solicit investors even after he had started to 

misappropriate funds. 

62. Thom knew or recklessly disregarded, and in addition should have known, that 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 11 of 20



 12 

the statements he made about how the investment funds would be used were materially false.   

63. As alleged above, Thom had complete control over investor funds, exercised sole 

discretion over the Shared Account, and made the decision to actively misappropriate funds.   

64. In addition, Thom provided purported “updates” on the performance of the Shared 

Account that contained materially false or misleading statements concerning his trading 

performance.   

65. Some of these “updates” were included as part of Thom’s investor solicitation 

posts.   

66. For example, on March 5, 2024, Thom posted an update on the K$ FB Group that 

falsely stated that he “did [$]4650 in gains today in the shared account.” 

67. In reality, Thom’s trading on that date resulted in a gain of only a few hundred 

dollars.   

68. As another example, in a post on the K$ FB Group dated either March 20 or 21, 

2024, while further soliciting investors to contribute to the Shared Account, Thom falsely stated 

that he was “[u]p over [$]26k in the shared today.” 

69. In reality, Thom’s trading on March 20, 2024 resulted in a gain of approximately 

$2,700, and his trading on March 21, 2024 resulted in a loss of approximately $12,370. In any 

event, Thom’s claim that he had made $26,000 was false.   

70. Thom knowingly or with reckless disregard, and negligently, continued to make 

false statements about performance as time went on, misleading investors as to the performance 

of their investment.   

71. For example, on July 3, 2024, Thom posted purported year-to-date returns for the 

three purportedly separate accounts within the Shared Account: “Swing +32%, DT +4%, YOLO 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 12 of 20



 13 

+120%.”   

72. But by this point, Thom had lost almost 30% of the investor funds that had been 

deposited in Brokerage Accounts A and B. 

73. Thom knew or recklessly disregarded, and should have known, that these 

statements about trading performance were false because he alone controlled the Shared Account 

(and Brokerage Accounts A and B) and knew or recklessly disregarded what the actual 

performance was.   

74. Finally, Thom’s presentation of his background was materially misleading.  

75. Thom described his purported financial expertise on various websites, including 

several that were often linked to on the K$ FB Group.  

76. As described above, for example, Thom referred on these websites to his 

“illustrious career” as a Wall Street market maker.  

77. This was materially misleading, because, as alleged above, Thom’s real-world 

experience in the financial industry was relatively brief, he had not worked for a brokerage firm 

for more than fifteen years, and he had been suspended by FINRA in 2011.   

78. Thom knew or recklessly disregarded, and should have known, that such 

descriptions of his background were false and misleading because he knew the true facts about 

his real-world experience in the financial industry.   

V. THOM MISAPPROPRIATED INVESTOR FUNDS 

79. As alleged above, approximately $615,000 of investor funds were deposited 

directly or indirectly into the MRK Account. 

80. Of that amount, Thom transferred at most $350,000 into Brokerage Accounts A 

and B for trading. 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 13 of 20



 14 

81. Thom misappropriated most of the remainder of the investor funds.   

82. Specifically, Thom transferred approximately $158,560 from the MRK Account 

to other accounts he controlled, and did not then deposit that money into a brokerage account for 

trading.   

83. In addition, Thom used approximately $76,856 of investor funds in the MRK 

Account for purely personal expenses.   

84. These personal expenses included: (a) $6,377 at a luxury goods store in Tokyo; 

(b) $6,026 for an Airbnb rental, which coincided with Thom telling investors he was in Paris for 

the 2024 Summer Olympics; (c) $2,724 at Hermès, a luxury goods store; (d) $1,618 at a Korean 

barbeque restaurant; and (e) thousands of dollars on everyday expenses like gas, the NYC 

subway, and groceries.   

85. In total, Thom misappropriated approximately $235,416 from investors.     

VI. THOM EVADED INVESTORS  

86. On June 27, 2024, Thom posted on the K$ FB Group, advising that anyone who 

wanted to withdraw from the purported “DT” [Day and Swing Trade] account needed to let him 

know by the following day because, otherwise, “everything is rolling into [end of year],” 

suggesting that investors would not be able to otherwise withdraw any funds until the end of 

2024. 

87. Several individuals responded to this post seeking to withdraw their funds and, in 

the weeks and months that followed, sought information about the status of their withdrawal 

requests 

88. Presumably in response to investor requests to withdraw their funds, Thom sent 

approximately $29,000 to five investors over the course of one week in late July 2024.  

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 14 of 20



 15 

89. Beyond that, Thom did not return any other funds to investors. 

90. During this time, Thom generally responded to investor inquiries and concerns 

with a range of deflections and excuses.  

91. Across multiple posts on the K$ FB Group, Thom blamed the investors for delays 

in processing their withdrawals by, for example, chiding them for not providing the paperwork 

he deemed necessary.  

92. At another point, members of the K$ FB Group were told that Thom purportedly 

could not communicate because he had been banned from Facebook. 

93. As 2024 continued, Thom became less and less active on the K$ FB Group and 

eventually stopped posting entirely. 

94. One investor (“Investor A”), who had been friends with Thom prior to investing, 

attempted to communicate with Thom by text message.  

95. In January 2025, when Investor A told Thom that people were worried about their 

money, Thom said that he was in Japan “dealing with the aftermath of the earthquake” and did 

not want to hear about worried investors when he was “dealing with situations.” 

96. In fact, there are no reports of an earthquake in Japan in January 2025 that caused 

any significant damage or injuries.  

97. Rather than “dealing with” a natural disaster, Thom was on an international jaunt 

using stolen investor funds. 

98. In February 2025, Investor A pointedly asked whether Thom was going to “ditch 

[Investor A] like that and run off with [Investor A’s money] after all these years.”  Thom did not 

reply.   

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 15 of 20



 16 

FIRST CLAIM FOR RELIEF 
Violations of Securities Act Section 17(a) 

 
99. The Commission re-alleges and incorporates by reference here the allegations in 

paragraphs 1 through 98.   

100. Thom, directly or indirectly, singly or in concert, in the offer or sale of securities 

and by the use of the means or instruments of transportation or communication in interstate 

commerce or the mails: (1) knowingly or recklessly has employed one or more devices, schemes 

or artifices to defraud, (2) knowingly, recklessly, or negligently has obtained money or property 

by means of one or more untrue statements of a material fact or omissions of a material fact 

necessary in order to make the statements made, in light of the circumstances under which they 

were made, not misleading, and/or (3) knowingly, recklessly, or negligently has engaged in one 

or more transactions, practices, or courses of business which operated or would operate as a 

fraud or deceit upon the purchaser. 

101. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, has 

violated and, unless enjoined, will again violate Securities Act Section 17(a) [15 U.S.C. 

§ 77q(a)]. 

SECOND CLAIM FOR RELIEF 
Violations of Exchange Act Section 10(b) and Rule 10b-5 Thereunder 

 
102. The Commission re-alleges and incorporates by reference here the allegations in 

paragraphs 1 through 98. 

103. Thom, directly or indirectly, singly or in concert, in connection with the purchase 

or sale of securities and by the use of means or instrumentalities of interstate commerce, or the 

mails, or the facilities of a national securities exchange, knowingly or recklessly has: (i) 

employed one or more devices, schemes, or artifices to defraud, (ii) made one or more untrue 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 16 of 20



 17 

statements of a material fact or omitted to state one or more material facts necessary in order to 

make the statements made, in light of the circumstances under which they were made, not 

misleading, and/or (iii) engaged in one or more acts, practices, or courses of business which 

operated or would operate as a fraud or deceit upon other persons. 

104. By reason of the foregoing, Defendant, directly or indirectly, singly or in concert, 

has violated and, unless enjoined, will again violate Exchange Act Section 10(b) [15 U.S.C. 

§ 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5]. 

THIRD CLAIM FOR RELIEF 
Violations of Advisers Act Sections 206(1) and (2) 

 
105. The Commission re-alleges and incorporates by reference here the allegations in 

paragraphs 1 through 98.  

106. At all relevant times, Thom was an investment adviser under Advisers Act Section 

202(11) [15 U.S.C. § 80b-2(11)]. 

107. Thom, by use of the mails or any means or instrumentality of interstate 

commerce, directly or indirectly has: (i) knowingly or recklessly employed one or more devices, 

schemes, or artifices to defraud any client or prospective client, and/or (ii) knowingly, recklessly, 

or negligently engaged in one or more transactions, practices, and courses of business which 

operated or would operate as a fraud or deceit upon any client or prospective client. 

108. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, has 

violated and, unless enjoined, will again violate Advisers Act Sections 206(1) and (2) [15 U.S.C. 

§§ 80b-6(1) and 80b-6(2)]. 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 17 of 20



 18 

FOURTH CLAIM FOR RELIEF 
Violations of Advisers Act Section 206(4) and Rule 206(4)-8(a) Thereunder 

 
109. The Commission re-alleges and incorporates by reference here the allegations in 

paragraphs 1 through 98.  

110. At all relevant times, Thom was an investment adviser, under Advisers Act 

Section 202(11) [15 U.S.C. § 80b-2(11)], to a pooled investment vehicle, as defined in Rule 

206(4)-8(b) [17 C.F.R. § 275.206(4)-8(b)].  

111. Thom, by use of the mails or any means or instrumentality of interstate 

commerce, directly or indirectly, knowingly, recklessly, or negligently has: (i) made one or more 

untrue statements of a material fact or omitted to state one or more material facts necessary in 

order to make the statements made, in light of the circumstances under which they were made, 

not misleading, to any investor or prospective investor in the pooled investment vehicle, and/or 

(ii) engaged in one or more acts, practices, or courses of business that were fraudulent, deceptive, 

or manipulative, with respect to any investor or prospective investor in the pooled investment 

vehicle.   

112. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, have 

violated and, unless enjoined, will again violate Advisers Act Section 206(4) [15 U.S.C. § 80b-

6(4)] and Rule 206(4)-8(a)(2) thereunder [17 C.F.R. § 275.206(4)-8(a)(2)]. 

PRAYER FOR RELIEF 

 WHEREFORE, the Commission respectfully requests that the Court enter a Final 

Judgment: 

I. 

Permanently enjoining Thom and his agents, servants, employees and attorneys and all 

persons in active concert or participation with any of them from violating, directly or indirectly, 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 18 of 20



 19 

Securities Act Section 17(a) [15 U.S.C. § 77q(a)], Exchange Act Section 10(b) [15 U.S.C. 

§ 78j(b)], and Rule 10b-5(b) thereunder [17 C.F.R. § 240.10b-5(b)], and Advisers Act Sections 

206(1), 206(2) and 206(4) [15 U.S.C. §§ 80b-6(1), 80b-6(2), and 80b-6(4)] and Rule 206(4)-8 

thereunder [17 C.F.R. § 275.206(4)-8]; 

II. 

Ordering Thom to disgorge all ill-gotten gains they received directly or indirectly, with 

pre-judgment interest thereon, as a result of the alleged violations, pursuant to Exchange Act 

Sections 21(d)(3), 21(d)(5), and 21(d)(7) [15 U.S.C. §§ 78u(d)(3), 78u(d)(5), and 78u(d)(7)]; 

III. 

Ordering Thom to pay civil monetary penalties under Securities Act Section 20(d) [15 

U.S.C. § 77t(d)], Exchange Act Section 21(d)(3) [15 U.S.C. § 78u(d)(3)], and Advisers Act 

Section 209(e) [15 U.S.C. § 80b-9(e)];  

IV. 

Permanently prohibiting Thom from participating, directly or indirectly, including, but 

not limited to, through any entity owned or controlled by him, in the issuance, purchase, offer, or 

sale of any security, provided, however, that such injunction shall not prevent him from 

purchasing or selling securities for his own personal accounts; 

V. 

Permanently prohibiting Thom from, directly or indirectly, acting as or being associated 

with any broker, dealer, or investment adviser, provided that for purposes of this injunction, (a) a 

person is associated with a broker or dealer if such person is a partner, officer, director, or branch 

manager of such broker or dealer (or occupies a similar status or performs similar functions), 

directly or indirectly controls, is controlled by, or is under common control with such broker or 

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 19 of 20



 20 

dealer, or is an employee of such broker or dealer, and (b) a person is associated with an 

investment adviser if such person is a partner, officer, or director of an investment adviser (or 

performs similar functions), or directly or indirectly controls or is controlled by such investment 

adviser; 

VI. 

Granting any other and further relief this Court may deem just and proper.  

JURY DEMAND 

 The Commission demands a trial by jury.  

Dated: New York, New York 
August 21, 2025  

/s/ Paul G. Gizzi_________________________ 
Sheldon L. Pollock 
Sandeep Satwalekar  
Paul G. Gizzi  
Nicholas Karasimas 
Attorneys for Plaintiff 
SECURITIES AND EXCHANGE COMMISSION 
New York Regional Office 
100 Pearl Street, Suite 20-100 
New York, NY 10004-2616 
212-336-0077 (Gizzi)  
[email protected]  

Case 1:25-cv-06909     Document 1     Filed 08/21/25     Page 20 of 20


	Sheldon L. Pollock
	Sandeep Satwalekar
	Paul G. Gizzi
	Nicholas Karasimas
	Attorneys for Plaintiff
	SECURITIES AND EXCHANGE COMMISSION
	New York Regional Office
	100 Pearl Street, Suite 20-100
	Plaintiff Securities and Exchange Commission (“Commission”), for its Complaint against Defendant Kenneth Thom (“Thom” or “Defendant”), alleges as follows:
	SUMMARY
	1. Between approximately February and August 2024 (the “Relevant Period”), Thom fraudulently raised more than $600,000 from numerous investor victims. After lying to investors about how he would use their money, Thom stole a substantial portion of it.
	2. Over several years, Thom built an online following using the monikers “K Money” or “K$.” On a website he maintained, Thom described himself as a trading “luminary,” a “former Wall Street market maker,” and a “beacon of knowledge, guiding and shapin...
	3. In February 2024, Thom began soliciting members of a Facebook group he ran (the “K$ FB Group”) to send him funds that he represented would be pooled in one or more shared accounts (the “Shared Account”) and traded on their behalf. While soliciting ...
	4. In total, Thom raised at least $615,000 from dozens of investors, raising most of that money during February and March 2024. Thom pooled investor funds in a bank account he controlled, transferred a portion of the funds into brokerage accounts, and...
	5. As 2024 went on, and Thom continued to misappropriate investor funds, his posts on the K$ FB Group became less frequent, and he eventually stopped responding to investors and the K$ FB Group’s administrators, many of whom were also investors.
	VIOLATIONS
	6. By virtue of the foregoing conduct and as alleged further herein, Thom has violated Section 17(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)], Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C...
	7. Unless Thom is restrained and enjoined, he will engage in the acts, practices, transactions, and courses of business set forth in this Complaint or in acts, practices, transactions, and courses of business of similar type and object.
	NATURE OF THE PROCEEDINGS AND RELIEF SOUGHT
	8. The Commission brings this action pursuant to the authority conferred upon it by Securities Act Sections 20(b) and 20(d) [15 U.S.C. §§ 77t(b) and 77t(d)], Exchange Act Section 21(d) [15 U.S.C. § 78u(d)], and Advisers Act Sections 209(d) and 209(e) ...
	9. The Commission seeks a final judgment: (a) permanently enjoining Thom from violating the federal securities laws and rules this Complaint alleges he has violated; (b) ordering Thom to disgorge all ill-gotten gains he received as a result of the vio...
	JURISDICTION AND VENUE
	10. This Court has jurisdiction over this action pursuant to Securities Act Section 22(a) [15 U.S.C. § 77v(a)], Exchange Act Section 27 [15 U.S.C. § 78aa], and Advisers Act Section 214 [15 U.S.C. § 80b-14].
	11. Thom, directly and indirectly, has made use of the means or instrumentalities of interstate commerce or of the mails in connection with the transactions, acts, practices, and courses of business alleged herein.
	12. Venue lies in this District under Securities Act Section 22(a) [15 U.S.C. § 77v(a)], Exchange Act Section 27 [15 U.S.C. § 78aa], and Advisers Act Section 214 [15 U.S.C. § 80b-14]. Certain of the acts, practices, transactions, and courses of busine...
	DEFENDANT
	13. Thom, age 42, currently lives in Westfield, New Jersey. Thom previously lived in the Bronx, New York, including during some or all of the Relevant Period. Thom passed the Series 7 and 63 exams in or about May 2006. Until approximately June 2008, T...
	14. For several years, Thom has operated websites and social media profiles using the monikers “K Money” or “K$.”
	15. Across the websites and profiles, Thom sought to portray himself as a skilled, experienced securities trader and “Wall Street veteran” with financial expertise.
	16. As alleged in more detail below, Thom would later use the online image he had created, and the following he gathered, to perpetrate his fraudulent scheme.
	17. Some of Thom’s websites and social media profiles are still active, including “kmoneygroup.com.” This website portrays Thom as a skilled and experienced securities trader.
	18. The homepage displays a mysterious looking, computer-generated image of a person wearing a Venetian mask and a golden robe, studying financial data on a monitor (see screenshot below).
	19.  Under a heading titled “The Wall Street Veteran,” the homepage touts Thom’s purported financial expertise as follows:
	In the fast-paced arena of financial markets, where fortunes are made and lost in the blink of an eye, there exists a luminary whose name resonates with unparallelled expertise and wisdom. Known to most as K$, a former Wall Street market maker who has...
	With an illustrious career that has weathered market storms and conquered financial peaks, Mr. K$ has now taken on a new mission: to unlock the secrets of his success and bestow them upon a select group of traders eager to ascend to greatness. In the ...
	20. Thom sought to use his self-created image as a Wall Street veteran and expert trader to generate revenue through multiple channels.
	21. For example, Thom streamed video content via Twitch, a popular live-streaming service, where he discussed the markets, described his trading strategy, and interacted with followers.
	22. In addition, Thom offered one-on-one trading lessons via his website. Thom offered multiple program options, including, for example, six-months of weekly trading lessons for $10,000.
	23. Thom also offered a subscription-based service in which he sent periodic trade recommendations. In one such subscription plan, subscribers paid $299 a month to receive up to four daily options trading recommendations.
	24. Simultaneously, Thom built a following on various other social media platforms. For instance, Thom maintained the K$ FB Group on Facebook, and he had more than 40,000 followers on Instagram.
	B. Thom’s Actual Industry Experience
	25. In contrast with the digital image he sought to create, Thom’s actual experience in the securities industry was limited.
	26. In particular, Thom was associated with five different brokerage firms during the roughly two-year period between May 2006 and June 2008. In some instances, Thom was only associated with a given brokerage firm for a month or two.
	27. In May 2009, Thom was named in a FINRA arbitration proceeding alleging misconduct, including breach of fiduciary duty, misrepresentation, fraud, and deception. Matter of Holloway v. Thom, Arbitration No. 09-02623 (FINRA Dispute Resolution). Thom f...
	28. Thom’s limited and dated experience in the securities industry stands in contrast with the image he sought to portray online and which he relied on to solicit investors. As described further below, Thom did not disclose the truth about his backgro...
	II. THOM’S SOLICITATION OF INVESTORS
	29. In December 2023, Thom first gauged investor interest in contributing to the Shared Account. Specifically, Thom posted a poll on the K$ FB Group asking whether anyone would be interest in a “subscription where it’s a 10K buy in, it trades [E-mini ...
	30. Shortly thereafter, in early February 2024, Thom began actively soliciting investors on the K$ FB Group.
	31. Specifically, on February 2, 2024, Thom posted a message with more detailed information about the mechanics of the Shared Account, how individuals could invest, and how he planned to trade.
	32. In this post, Thom said that the minimum deposit would be $10,000 (with a few slots available at $5,000). The deposits, however, had to be made in multiple increments, in amounts less than $10,000 “to avoid the IRS flagging it.”
	33. Thom also posted that he would have “free reign to trade anything [he] wanted, whenever [he] wanted.” Thom described certain fees, like a $50 fee for “paperwork,” and fees for money sent by wire. Thom explained that he would keep 50% of the profit...
	34. Two investors who were also K$ FB Group moderators had already sent funds on January 29, 2024, but additional investors began sending funds after Thom’s February 2, 2024 post.
	35. For example, Thom raised approximately $2,500 that same day, and on February 5, 2024, he raised more than $50,000.
	36. Thom continued to solicit investors through posts on the K$ FB Group throughout February and March 2024, and individuals continued to send funds to Thom.
	37. On March 18, 2024, Thom began posting messages about another purported account, which he referred to as an “options swing shared account” and that he said would begin in April 2024. Consistent with his earlier descriptions, Thom represented that h...
	38. On March 22, 2024, Thom posted another solicitation message, telling the group that “April [was] coming fast for the [options] swing [shared] account.” Thom’s post also referenced his “50% cut” of the profit and investors receiving “their [percent...
	39. On March 30, 2024, Thom posted a message explaining that he would be focusing more on the Shared Accounts, and that there would be three supposed accounts: (i) a “Swing Trade” account, which Thom said would trade options; (ii) a “Day and Swing Tra...
	40. As alleged more fully below, despite Thom referring to three separate accounts in his March 30, 2024 post, and in subsequent investor updates, Thom did not, in fact, place investor funds into three separate accounts that utilized different trading...
	41. As a result, and for the sake of clarity, this Complaint generally refers to the Shared Account as the vehicle through which Thom pooled investor funds, regardless of what Thom subsequently did with the funds.
	42. Most of the investor funds were sent in February and March 2024, with smaller amounts sent in April and May, and a final transfer in August.
	43. In some cases, investors wired money directly to a bank account in the name of “MRK Mgt LLC” (the “MRK Account”), an LLC entity that Thom controlled. In other cases, investors sent money to Thom through payment apps, and he then transferred the mo...
	44. In total, Thom raised at least $615,000 from more than fifty investors.
	45. Based on Thom’s representations, investors understood that their money would be pooled, and any profits would be shared, with Thom taking 50% of the profit and the investors sharing the other 50%, on a pro rata basis.
	46. Thom’s representations to investors led them to understand that any profits realized in the Shared Account would be based solely on Thom’s efforts. For example, Thom represented that he maintained complete control over the Shared Account and that ...
	47. Thom did, in fact, exercise complete and sole control over the Shared Account, and exercised complete discretion over purchasing and selling securities.
	48. Because the Shared Account was a collective investment vehicle that would primarily invest in securities, the Shared Account is a pooled investment vehicle pursuant to Advisers Act Rule 206(4)-8(b) [17 C.F.C. § 275.206(4)-8(b)].
	III. THOM’s UNSUCCESSFUL SECURITIES TRADING
	49. In March and April 2024, Thom transferred a portion of the investor funds from the MRK Account into two brokerage accounts, ostensibly for securities trading as promised to investors.
	50. Specifically, Thom transferred $125,000 in one brokerage account (“Brokerage Account A”) and $50,000 in another (“Brokerage Account B”).
	51. In addition, Thom deposited a total of $175,000 into Brokerage Account A from his personal accounts at various times between March and August 2024.
	52. In total, Thom deposited at most $350,000 into brokerage accounts for securities trading, significantly less than the at least $615,000 he had raised from investors for the purpose of trading in the Shared Account.
	53. On the whole, Thom’s securities trading was unprofitable, as described below.
	54. In Brokerage Account A, Thom primarily traded short-dated options on popular exchange-traded funds that are designed to track market indices, such as the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust, Series 1 (QQQ).
	55. In Brokerage Account A, Thom posted negative trading returns in each month from March through October 2024, until the account was left with a de minimis balance.
	56. In Brokerage Account B, Thom primarily traded slightly longer-dated options on a wider range of securities, as compared to the activity in Brokerage Account A.
	57. Thom posted relatively small monthly gains or losses in Brokerage Account B and, as of early 2025, the account balance was approximately $75,000, reflecting a total gain of approximately $25,000.
	IV. THOM’S MATERIALLY FALSE OR MISLEADING STATEMENTS
	58. The basic premise of Thom’s solicitation was that he would place investor funds into the Shared Account, trade on investors’ behalf, and share any profits with them.
	59. This description, repeated across multiple representations to investors, was materially false.
	60. As alleged below, Thom misappropriated a significant portion of investor funds, rather than trading it on their behalf.
	61. Indeed, Thom continued to solicit investors even after he had started to misappropriate funds.
	62. Thom knew or recklessly disregarded, and in addition should have known, that the statements he made about how the investment funds would be used were materially false.
	63. As alleged above, Thom had complete control over investor funds, exercised sole discretion over the Shared Account, and made the decision to actively misappropriate funds.
	64. In addition, Thom provided purported “updates” on the performance of the Shared Account that contained materially false or misleading statements concerning his trading performance.
	65. Some of these “updates” were included as part of Thom’s investor solicitation posts.
	66. For example, on March 5, 2024, Thom posted an update on the K$ FB Group that falsely stated that he “did [$]4650 in gains today in the shared account.”
	67. In reality, Thom’s trading on that date resulted in a gain of only a few hundred dollars.
	68. As another example, in a post on the K$ FB Group dated either March 20 or 21, 2024, while further soliciting investors to contribute to the Shared Account, Thom falsely stated that he was “[u]p over [$]26k in the shared today.”
	69. In reality, Thom’s trading on March 20, 2024 resulted in a gain of approximately $2,700, and his trading on March 21, 2024 resulted in a loss of approximately $12,370. In any event, Thom’s claim that he had made $26,000 was false.
	70. Thom knowingly or with reckless disregard, and negligently, continued to make false statements about performance as time went on, misleading investors as to the performance of their investment.
	71. For example, on July 3, 2024, Thom posted purported year-to-date returns for the three purportedly separate accounts within the Shared Account: “Swing +32%, DT +4%, YOLO +120%.”
	72. But by this point, Thom had lost almost 30% of the investor funds that had been deposited in Brokerage Accounts A and B.
	73. Thom knew or recklessly disregarded, and should have known, that these statements about trading performance were false because he alone controlled the Shared Account (and Brokerage Accounts A and B) and knew or recklessly disregarded what the actu...
	74. Finally, Thom’s presentation of his background was materially misleading.
	75. Thom described his purported financial expertise on various websites, including several that were often linked to on the K$ FB Group.
	76. As described above, for example, Thom referred on these websites to his “illustrious career” as a Wall Street market maker.
	77. This was materially misleading, because, as alleged above, Thom’s real-world experience in the financial industry was relatively brief, he had not worked for a brokerage firm for more than fifteen years, and he had been suspended by FINRA in 2011.
	78. Thom knew or recklessly disregarded, and should have known, that such descriptions of his background were false and misleading because he knew the true facts about his real-world experience in the financial industry.
	V. THOM MISAPPROPRIATED INVESTOR FUNDS
	79. As alleged above, approximately $615,000 of investor funds were deposited directly or indirectly into the MRK Account.
	80. Of that amount, Thom transferred at most $350,000 into Brokerage Accounts A and B for trading.
	81. Thom misappropriated most of the remainder of the investor funds.
	82. Specifically, Thom transferred approximately $158,560 from the MRK Account to other accounts he controlled, and did not then deposit that money into a brokerage account for trading.
	83. In addition, Thom used approximately $76,856 of investor funds in the MRK Account for purely personal expenses.
	84. These personal expenses included: (a) $6,377 at a luxury goods store in Tokyo; (b) $6,026 for an Airbnb rental, which coincided with Thom telling investors he was in Paris for the 2024 Summer Olympics; (c) $2,724 at Hermès, a luxury goods store; (...
	85. In total, Thom misappropriated approximately $235,416 from investors.
	VI. THOM EVADED INVESTORS
	86. On June 27, 2024, Thom posted on the K$ FB Group, advising that anyone who wanted to withdraw from the purported “DT” [Day and Swing Trade] account needed to let him know by the following day because, otherwise, “everything is rolling into [end of...
	87. Several individuals responded to this post seeking to withdraw their funds and, in the weeks and months that followed, sought information about the status of their withdrawal requests
	88. Presumably in response to investor requests to withdraw their funds, Thom sent approximately $29,000 to five investors over the course of one week in late July 2024.
	89. Beyond that, Thom did not return any other funds to investors.
	90. During this time, Thom generally responded to investor inquiries and concerns with a range of deflections and excuses.
	91. Across multiple posts on the K$ FB Group, Thom blamed the investors for delays in processing their withdrawals by, for example, chiding them for not providing the paperwork he deemed necessary.
	92. At another point, members of the K$ FB Group were told that Thom purportedly could not communicate because he had been banned from Facebook.
	93. As 2024 continued, Thom became less and less active on the K$ FB Group and eventually stopped posting entirely.
	94. One investor (“Investor A”), who had been friends with Thom prior to investing, attempted to communicate with Thom by text message.
	95. In January 2025, when Investor A told Thom that people were worried about their money, Thom said that he was in Japan “dealing with the aftermath of the earthquake” and did not want to hear about worried investors when he was “dealing with situati...
	96. In fact, there are no reports of an earthquake in Japan in January 2025 that caused any significant damage or injuries.
	97. Rather than “dealing with” a natural disaster, Thom was on an international jaunt using stolen investor funds.
	98. In February 2025, Investor A pointedly asked whether Thom was going to “ditch [Investor A] like that and run off with [Investor A’s money] after all these years.”  Thom did not reply.
	Violations of Securities Act Section 17(a)
	99. The Commission re-alleges and incorporates by reference here the allegations in paragraphs 1 through 98.
	100. Thom, directly or indirectly, singly or in concert, in the offer or sale of securities and by the use of the means or instruments of transportation or communication in interstate commerce or the mails: (1) knowingly or recklessly has employed one...
	101. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, has violated and, unless enjoined, will again violate Securities Act Section 17(a) [15 U.S.C. § 77q(a)].
	Violations of Exchange Act Section 10(b) and Rule 10b-5 Thereunder
	102. The Commission re-alleges and incorporates by reference here the allegations in paragraphs 1 through 98.
	103. Thom, directly or indirectly, singly or in concert, in connection with the purchase or sale of securities and by the use of means or instrumentalities of interstate commerce, or the mails, or the facilities of a national securities exchange, know...
	104. By reason of the foregoing, Defendant, directly or indirectly, singly or in concert, has violated and, unless enjoined, will again violate Exchange Act Section 10(b) [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].
	THIRD CLAIM FOR RELIEF
	Violations of Advisers Act Sections 206(1) and (2)
	105. The Commission re-alleges and incorporates by reference here the allegations in paragraphs 1 through 98.
	106. At all relevant times, Thom was an investment adviser under Advisers Act Section 202(11) [15 U.S.C. § 80b-2(11)].
	107. Thom, by use of the mails or any means or instrumentality of interstate commerce, directly or indirectly has: (i) knowingly or recklessly employed one or more devices, schemes, or artifices to defraud any client or prospective client, and/or (ii)...
	108. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, has violated and, unless enjoined, will again violate Advisers Act Sections 206(1) and (2) [15 U.S.C. §§ 80b-6(1) and 80b-6(2)].
	FOURTH CLAIM FOR RELIEF
	Violations of Advisers Act Section 206(4) and Rule 206(4)-8(a) Thereunder
	109. The Commission re-alleges and incorporates by reference here the allegations in paragraphs 1 through 98.
	110. At all relevant times, Thom was an investment adviser, under Advisers Act Section 202(11) [15 U.S.C. § 80b-2(11)], to a pooled investment vehicle, as defined in Rule 206(4)-8(b) [17 C.F.R. § 275.206(4)-8(b)].
	111. Thom, by use of the mails or any means or instrumentality of interstate commerce, directly or indirectly, knowingly, recklessly, or negligently has: (i) made one or more untrue statements of a material fact or omitted to state one or more materia...
	112. By reason of the foregoing, Thom, directly or indirectly, singly or in concert, have violated and, unless enjoined, will again violate Advisers Act Section 206(4) [15 U.S.C. § 80b-6(4)] and Rule 206(4)-8(a)(2) thereunder [17 C.F.R. § 275.206(4)-8...
	PRAYER FOR RELIEF
	Dated: New York, New York
	Sheldon L. Pollock
	Sandeep Satwalekar
	Paul G. Gizzi
	Nicholas Karasimas
	Attorneys for Plaintiff
	SECURITIES AND EXCHANGE COMMISSION
	New York Regional Office
	100 Pearl Street, Suite 20-100