Thomas John “T.J. Stone” Sfraga Sentenced for Real Estate and Crypto Scam
Thomas John “T.J. Stone” Sfraga has been sentenced in federal court for orchestrating a fraudulent scheme that targeted real estate and cryptocurrency investors. The scheme, inspired by the popular 90s TV show Seinfeld, led to Sfraga being sentenced to 45 months in prison and ordered to pay nearly $1.4 million in forfeiture to the state, with additional restitution to be determined at a later date.
Sfraga’s Deceptive Practices
Initially pleading guilty to wire fraud charges in May 2024, Sfraga admitted to deceiving multiple victims into investing in a fictitious cryptocurrency project called “virtual wallet.” Promising returns as high as 60% within three months, Sfraga operated a Ponzi scheme where he used investors’ funds to pay off earlier victims and cover personal expenses.
To bolster his credibility, Sfraga claimed ownership of several businesses, including Build Strong Homes LLC and Vandelay Contracting Corp. The latter, named after the fictional company “Vandelay Industries” from Seinfeld, was a key component of his elaborate ruse.
The Impact of Sfraga’s Actions
Approximately 17 victims from Brooklyn, Staten Island, and Long Island fell prey to Sfraga’s fraudulent tactics, with one individual even loaning him $100,000 in cash for a non-existent construction venture. U.S. Attorney John J. Durham condemned Sfraga for causing significant financial and emotional harm to those who trusted him with their investments.
Durham remarked, “Sfraga callously stole from friends, neighbors, and even parents of children who played on teams with his own children, as well as individual cryptocurrency investors.”
Rising Concerns in Cryptocurrency Scams
A recent survey conducted by The North American Securities Administrators Association highlighted cryptocurrency and social media scams as the top threats faced by retail investors in 2025. With 32% of scams originating from social media platforms like Facebook and X, and another 31% tied to messaging services such as Telegram and WhatsApp, regulators are increasingly vigilant in combating fraudulent schemes.
As investors navigate the evolving landscape of digital assets, staying informed and cautious is paramount to safeguarding against potential scams and fraudulent activities.