Thomas John Sfraga, often called “TJ Stone,” entered a responsible plea to wire fraud expenses in a Brooklyn federal courtroom on Thursday.
In accordance with the U.S. Division of Justice, Sfraga was accused of deceiving buyers with the promise of as much as 60% returns inside three months via a non-existent cryptocurrency digital pockets. As an alternative of fulfilling these guarantees, he allegedly diverted these funds for private use and to placate earlier victims of his fraudulent actions.
“For years, Sfraga overtly lied to associates, neighbors, and buyers to swindle over $1.3 million of their hard-earned life financial savings,” commented Breon Peace, the U.S. legal professional for the Jap District of New York, on the case.
Throwback to ‘Seinfeld’
Moreover, Sfraga claimed possession of “Vandelay Contracting Corp.” and “Construct Robust Properties LLC,” firms with names harking back to a fictional enterprise from the tv present “Seinfeld.” This fictitious reference was a part of his technique to lure buyers into funding non-existent development tasks.
An FBI investigation revealed that Sfraga’s fraudulent actions prolonged into cryptocurrency staking, a course of the place digital property are used to help a blockchain community, providing potential returns via yields. In accordance with a December 2023 FBI grievance, Sfraga misrepresented the dangers concerned in cryptocurrency staking to potential buyers, claiming it was an “ironclad state of affairs” with “no danger.”
Sfraga, whose background contains actual property improvement, media relations, podcasting, and internet hosting cryptocurrency occasions in New York, now faces as much as 20 years in jail. He’s additionally ordered to pay restitution amounting to $1.33 million.