Thomas John Sfraga, also known as T.J. The court sentenced Stone to 45 months in prison for wire fraud and ordered him to forfeit $1,337,700 in Brooklyn federal court. Later on, the court would decide on restitution. He had pleaded guilty in May of 2024.
The authorities said that Sfraga swindled his friends, his neighbors, and his crypto investors. He promised them great returns but diverted their money. They lost their savings and fell into financial distress. Prosecutors said that his fraud inflicted serious damage.
Sfraga ran fake businesses from 2016 through 2022. He posed as running Build Strong Homes LLC and Vandelay Contracting Corp. He named the latter after the fictional Vandelay Industries from “Seinfeld.” T.J presented himself as being a serial entrepreneur and attended crypto events in New York and built credibility.
Crypto scam fake investments and broken promises
A minimum of 17 individuals were swindled. He convinced people to give him money for fake investments. T.J. promised them huge returns on real estate and crypto deals and was given $100,000 by one of his victims for something that didn’t even exist.
T.J targeted Brooklyn, Staten Island, and Long Island residents. They trusted him because of his relationships. He took advantage of their trust and used refined deceptions to hide his tracks. T.J showed them fake papers and fake information when asked questions. He spent his victims’ funds extravagantly.
When the police started investigating the case, Sfraga fled. He assumed a new identity and moved to Arizona. T.J evaded authorities for months and continued to mislead people.
He kept changing places to evade detection. Authorities apprehended him in Las Vegas after he left a casino without paying his tab. The FBI arrested him, ending his years of deception.
Crypto fraud authorities urge caution
The Business and Securities Fraud Section handled the case. Assistant United States Attorney John Vagelatos handled the case. Paralegal Specialist Madison Bates assisted him. Authorities warn investors to be cautious and verify financial offers for validity before investing their funds.
The prosecutors allege that the actions of Sfraga brought about emotional and financial damages. A number of victims lost their life savings. They trusted him and believed his promises. His schemes destroyed their financial security. Law enforcement officials are continuing to investigate other such fraud cases.
