Yesterday, Brooklyn's own "T.J. Stone," born Thomas John Sfraga, received a 45-month prison sentence for a wire fraud scheme that swindled more than $2 million from individual real estate and cryptocurrency investors. The sentencing, handed down by United States District Judge Frederic Block, also includes a forfeiture payment of $1,337,700 from Sfraga, with the restitution amount yet to be determined after his May 2024 guilty plea, according to a press release by the U.S. Attorney's Office for the Eastern District of New York.
"Sfraga callously stole from friends, next-door neighbors, and the parents of children who played on teams with his own children, as well as from individual cryptocurrency investors," stated United States Attorney John J. Durham, as noted by the same press release. Over a period spanning from 2016 to 2022, Sfraga, under the guise of various business ventures, including Build Strong Homes LLC and the amusingly named Vandelay Contracting Corp., convinced victims to invest in nonexistent projects. This included shams involving home renovations and a bogus cryptocurrency "virtual wallet."
Proclaiming to be a savvy entrepreneur skilled in podcasting, media relations, and the cryptocurrency sphere, Sfraga managed to defraud at least 17 victims in Brooklyn, Staten Island, and Long Island among others. He assured them of exorbitant returns, sometimes promising as much as a 60% profit within three months, which never materialized. Instead, Sfraga rerouted their investments to fund his own lifestyle and pay off others in his fraudulent network, fleeing to Arizona once legal scrutiny grew too intense, hiding under a false identity until his eventual capture in Las Vegas, as detailed by the U.S. Attorney's Office.
According to the FBI's New York Field Office Acting Assistant Director in Charge, Leslie R. Backschies, the arrest of Sfraga at the Wynn Casino followed his attempt to settle a large bill with a swift getaway. The Assistant United States Attorney John Vagelatos is handling the government's case, supported by Paralegal Specialist Madison Bates, as they unpack the intricate web of deceit woven by "T.J. Stone."
