SEC, DOJ Hit Ex-Broker With Fraud Claims for Facebook Scheme

A suspended securities broker who used Meta Platform Inc.'s Facebook to defraud his followers out of hundreds of thousands had promoted himself online as a successful trader to sell courses and stock tips, the US Justice Department and the SEC said.

Kenneth Thom, who also went by “K$” and “K Money” on Facebook, used the social media platform to invite followers to participate in shared accounts he managed in exchange for a cut of their trading profits, according to DOJ charges and a Securities and Exchange Commission complaint filed Thursday in the US District Court for the Southern District of ...