A New York man pleaded guilty to fraud last week after using several fake crypto and real estate schemes to defraud investors of more than $1.3 million.
Thomas John Sfraga, who went by the alias “TJ Stone,” defrauded more than a dozen victims, including friends and neighbors, according to an announcement from the U.S. Attorney’s Office for the Eastern District of New York.
Sfraga portrayed himself as a serial entrepreneur with experience in real estate development, media relations, podcasting and cryptocurrencies. He also claimed to host crypto events in New York City.
To facilitate his fraud, Sfraga pretended to own multiple companies, calling him Vandelay Contracting Corp. and called Build Strong Homes LLC.
The U.S. Attorney’s Office notes that Vandelay could be named after Vandelay Industries, a fictional company in the television show “Seinfeld.”
Sfraga denounced victims in Brooklyn, Staten Island and Long Island by pretending to buy, renovate and flip homes. He also defrauded a victim into investing in a fake crypto wallet and convinced an investor to deposit $100,000 in cash to support a non-existent construction project.
But instead of making legitimate investments, Sfraga used the money to enrich himself and pay older investors.
Sfraga faces a maximum prison sentence of 20 years and has been ordered to pay more than $1.33 million in restitution.
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