Brooklyn Podcaster Sfraga Sentenced to 45 Months for Scamming Over $2M from Investors

Highlights:

• Thomas John Sfraga embezzled over $2 million from investors through fake real estate and cryptocurrency projects.
• His lies credited to Seinfeld’s fictional company where Sfraga used the name “Vandelay Contracting” to defraud his victims.
• The court sentenced him to 45 months imprisonment and ordered him to forfeit over 1.3 million.

Thomas John Sfraga, also known as T.J. Stone, has been sentenced to a jail term of 45 months over defrauding investors. Sfraga, a popular Brooklyn-based podcaster in the cryptocurrency space, was convicted of wire fraud where he defrauded investors over $2 million in real estate and cryptocurrencies.

Brooklyn Podcaster and Cryptocurrency Personality Known as “T.J. Stone” Sentenced to 45 Months’ Imprisonment https://t.co/lbWYVDHqtz (Announced with @NewYorkFBI)

— US Attorney EDNY (@EDNYnews) March 14, 2025

The Fraudulent Businesses of T.J. Stone

Sfraga has managed to run several fraudulent businesses between 2016 and 2022. One of these, Vandelay Contracting Corp, was given this name after the fictional company Vandelay Industries in a TV show known as ‘Seinfeld’. Using a reference to a pop culture product, Sfraga managed to manipulate investors and gain the trust of both the real estate and crypto industries.

Sfraga presented himself as an experienced businessman with an entrepreneurial background in real estate, podcasts, and cryptocurrency. His presence on social media and his participation in events as an emcee of the cryptocurrency occasions in New York contributed significantly to his popularity. This facade enabled him to swindle at least 17 victims from the Brooklyn, Staten Island, and Long Island regions to invest in these schemes.

How T.J. Stone Defrauded His Victims

The activities that Sfraga engaged in include real estate and cryptocurrency fraud. He promised very high returns of up to 60% within a period of three months. However, Sfraga did not use this money to fund the promised projects but rather paid earlier victims and indulged in his lavish lifestyle.

One of the reported scams entailed that the victim lent Sfraga $100,000 in a construction project that did not exist. In reality, he fabricated the project and spent the money on other things, including reimbursing earlier investors. 

Sfraga continued with the scam by persuading the victims to invest in a fake cryptocurrency known as a ‘virtual wallet’ that he never had any intention of developing. He was emulating a Ponzi scheme, in which he was carrying out the investment of new members in an endeavor to clear previous debts.

The Investigation and Legal Consequences

The fraud was uncovered when several victims sought legal action against Sfraga. Further investigations revealed that Sfraga had fled to Arizona and was living there under a false identity. He was later arrested in Las Vegas after trying to flee without settling a bill at the Wynn Casino.

In May 2024, Sfraga admitted to the wire fraud charge. As part of the apprehended sentence, authorities also made him surrender $1,337,700 that he had gained fraudulently. In addition, the court will issue a restitution order to compensate the victims of the fraud he committed. U.S. Attorney John J. Durham stressed that Sfraga harmed several of his targets financially and mentally. Furthermore, most of them knew him personally or were related to him.