A Brooklyn man and cryptocurrency personality has pleaded guilty to wire fraud, swindling over $1.3 million from friends, neighbors, and investors. Thomas John Sfraga, aka ‘T.J. Stone,’ faces a maximum sentence of 20 years in prison and restitution of over $1.3 million.
Yesterday, in federal court in Brooklyn, Sfraga, 55, pleaded guilty to an information charging him with wire fraud. The proceeding was held before Chief United States Magistrate Judge Lois Bloom.
For years, Sfraga brazenly lied to his victims, convincing them to loan him money or invest in multiple fraudulent investments, including purchasing, renovating, and ‘flipping’ homes. He promised returns as high as 60% in three months, but in reality, he converted the money to his own benefit, to pay expenses, and to pay earlier victims and business associates.
Sfraga defrauded over a dozen victims, including those in Brooklyn, Staten Island, and Long Island. On one occasion, he convinced a victim to lend him $100,000 in cash as start-up costs for a non-existent major construction project. On another occasion, he convinced a victim to invest in a fictitious cryptocurrency ‘virtual wallet.’
United States Attorney Breon Peace and Assistant Director-in-Charge James Smith, FBI, New York Field Office, announced the guilty plea. ‘For years, Sfraga brazenly lied to friends, neighbors, and investors to swindle over $1.3 million of their hard-earned life savings,’ Peace stated. ‘This Office will continue to hold fraudsters accountable and achieve justice for victims throughout the Eastern District of New York and across the United States.’
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney John Vagelatos is in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates.
Sfraga’s sentencing is pending. When sentenced, he faces a maximum sentence of 20 years’ imprisonment, as well as restitution of over $1.3 million.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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