Evergreen Reporter

Thomas John Sfraga, known in the cryptocurrency community as "T.J. Stone," was sentenced to 45 months in prison for wire fraud by United States District Judge Frederic Block in Brooklyn federal court. In addition to the prison term, Sfraga has been ordered to pay $1,337,700 in forfeiture. The amount of restitution will be determined later. Sfraga pleaded guilty to the charges in May 2024.

The sentencing was announced by John J. Durham, United States Attorney for the Eastern District of New York, and Leslie R. Backschies, Acting Assistant Director in Charge of the FBI's New York Field Office.

"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 Durham. "There was nothing funny about his use of a Seinfeldian company, Vandelay Industries, to carry out this fraud."

Between 2016 and 2022, Sfraga presented himself as an entrepreneur with interests in real estate development and cryptocurrencies under multiple business names including Build Strong Homes LLC and Vandelay Contracting Corp., a name inspired by a fictional company from the television show “Seinfeld.” He convinced at least 17 victims across Brooklyn, Staten Island, and Long Island to invest money into sham projects such as home renovations or a fictitious cryptocurrency wallet promising high returns.

One victim was persuaded to lend $100,000 for non-existent construction startup costs while another invested in a fake virtual wallet scheme. Instead of investing their money as promised, Sfraga used it for personal expenses or repaid earlier victims and associates.

When legal action against him commenced following lawsuits filed by victims, Sfraga fled to Arizona using a false identity but was later apprehended in Las Vegas after failing to pay his bill at Wynn Casino.

The prosecution is being managed by Assistant United States Attorney John Vagelatos from the Office’s Business and Securities Fraud Section with support from Paralegal Specialist Madison Bates.