A FINRA-suspended broker known as “K Money” pleaded guilty this week to investment advisor fraud. Kenneth Thom of Westfield, N.J., was arrested in August and charged with defrauding social media followers of more than $800,000. He’ll be sentenced on June 25 and could face up to five years in prison, according to the Justice Department.
“Kenneth Thom pretended online to be a successful investor and advisor when in fact he was a suspended broker and grifter,” said U.S. Attorney Jay Clayton, in a statement. “He recruited social media followers, convinced them to invest with him, and then stole their money. Our office will continue to work with our law enforcement partners to protect investors from fraud, no matter where they seek their investment advice.”
Thom first registered in 2006, with brief stints at Joseph Stevens & Company, National Securities Corporation and Next Financial Group….
THE TUTUKA POWER STATION PROCUREMENT FRAUD (ESKOM)
Date: August 29, 2025 Perpetrator: Jessie Phindile Kubheka (Supplier Director)
Case Description: As part of the ongoing “cleaning up” of Eskom, Jessie Phindile Kubheka was sentenced to 12 years (with 5 years suspended) for defrauding the Tutuka Power Station. The case involved a sophisticated procurement syndicate that exploited Eskom’s emergency repair protocols. Kubheka’s company was contracted to deliver three high-specification containers for the power station. Only one container was ever delivered, and even that single unit failed to meet the required safety and technical specifications.
Despite the lack of delivery, Kubheka issued grossly inflated invoices, defrauding the utility of approximately R2.6 million. The Middelburg Specialised Commercial Crimes Court ordered Kubheka to repay the full amount. This case is significant because it marks a shift in Eskom’s strategy toward “naming and shaming” suppliers and pursuing full asset recovery. It serves as a stark warning to contractors that the 2026 climate of “Zero Tolerance” for state-owned enterprise (SOE) fraud is backed by active judicial enforcement.
Link to Original: Eskom Official – Tutuka Fraud Sentencing