A Brooklyn crypto influencer, known as “TJ Stone,” was sentenced to nearly four years in federal prison for orchestrating a multimillion-dollar Ponzi scheme. Thomas John Sfraga, a former podcaster, swindled at least 17 individuals out of over $2 million by convincing them to invest in his fraudulent business ventures, including the Vandelay Contracting Corporation, a nod to the TV show Seinfeld. Sfraga’s scam, which ran from 2016 to 2022, targeted friends, neighbors, and even his child’s baseball coach, promising investments in real estate and cryptocurrency projects. However, he used the funds for personal expenses and to repay victims in order to maintain their trust. When investors began to catch on, Sfraga fled to Arizona and later Nevada, where he was apprehended for unpaid debts at a Las Vegas casino under an assumed identity. In May 2024, Sfraga pleaded guilty to wire fraud and was sentenced to 45 months in prison, with a requirement to forfeit $1.3 million. The total restitution owed to his victims will be determined at a later date. Despite the severity of his actions, Sfraga’s attorney declined to comment on the case.
According to court documents, Sfraga enticed victims into investing hundreds of thousands of dollars in real estate projects. He initially made payments to some victims, but eventually stopped communicating with them. One victim from Long Island was convinced to invest money and even give $50,000 received in wedding gifts to Sfraga. When the victim asked for the money back, Sfraga claimed his father in Alaska was dying and he had to visit him. Sfraga’s company, Vandelay Corporation, purportedly linked to a cryptocurrency firm, was involved in these fraudulent activities.
Sfraga used an alias, TJ Stone, to deceive another victim into investing $30,000 in Vandelay “e wallets” at a building in Manhattan. However, after cashing the check, Sfraga failed to deliver on his promises and later claimed to be hospitalized after a heart attack. Ultimately, he admitted to misusing investor funds and making false assurances.
As investors demanded their money back, Sfraga fled to Arizona, where he had spent his teenage years. He was eventually arrested in Nevada for failing to pay his casino bill and was taken into federal custody for his fraudulent activities. Despite leading a seemingly stable life with a supportive wife, children, and successful business ventures, Sfraga engaged in illegal schemes that led to his imprisonment.
A Brooklyn man, who had a chance to pursue college baseball at Arizona State University, later married and had two children upon his return to Brooklyn. Despite having the opportunity for a successful and law-abiding life, he decided to engage in fraudulent activities, deceiving his neighbors and friends for financial gain. Michael Loria is a national reporter for USA TODAY. Contact him at mloria@usatoday.com, @mchael_mchael, or on Signal at (202) 290-4585. The article detailing the sentencing of the Brooklyn man for a deceptive scheme originally appeared on USA TODAY.
