Last updated:
Journalist
Tanzeel Akhtar
Journalist
Tanzeel Akhtar
Share
Why Trust Cryptonews
Key Takeaways:
- Crypto influencer faces a prison sentence for deceiving property and digital asset backers.
- The scheme unfolded over years using false business fronts and exploited personal ties.
- The case shows the risk of investing without independent verification.
Thomas John Sfraga, known as T.J. Stone, was sentenced to 45 months in federal prison for wire fraud after defrauding real estate and cryptocurrency investors out of over $2 million, according to the U.S. Department of Justice on Friday.
According to a press release from the U.S. Department of Justice, Sfraga defrauded real estate and cryptocurrency investors out of more than $2 million.
He was also ordered to forfeit $1,337,700, with restitution to be determined later.
His sentencing took place in Brooklyn, presided over by U.S. District Judge Frederic Block.
The case, led by the U.S. Attorney’s Office for the Eastern District of New York and the FBI’s New York Field Office, exposed a years-long fraudulent scheme in which Sfraga exploited personal relationships and investor trust to fund a series of sham businesses.
U.S. Attorney John J. Durham condemned Sfraga’s actions, stating in a press release that he “stole from friends, neighbors, and even parents of children who played on sports teams with his own kids.”
Sfraga ran fraudulent businesses, including Build Strong Homes LLC and Vandelay Contracting Corp.—a name referencing the fictional “Vandelay Industries” from Seinfeld.
Under the alias “T.J. Stone,” he portrayed himself as a real estate developer, media personality, and cryptocurrency expert, even acting as an emcee at major crypto events in New York.
Stone’s Fraudulent Activities Spanned Years
Between 2016 and 2022, Sfraga convinced at least 17 victims in Brooklyn, Staten Island, and Long Island to invest in fraudulent ventures, including real estate flipping projects and cryptocurrency investments, promising returns of up to 60% in just three months.
One of his schemes involved persuading a victim to lend him $100,000 for a construction project that did not exist.
In another, he promoted a fictitious crypto “virtual wallet,” enticing victims with the prospect of high returns.
Rather than investing the funds, Sfraga spent the money on personal expenses and used some to repay earlier victims in a Ponzi-style scheme.
As authorities began investigating, Sfraga fled to Arizona and assumed a false identity.
Law enforcement arrested him in Las Vegas after he failed to pay a bill at the Wynn Casino.
The case was prosecuted by Assistant U.S. Attorney John Vagelatos, with support from Paralegal Specialist Madison Bates, culminating in Sfraga’s sentencing.
