T.J. Stone Swindles $1.3M in Brooklyn Crypto Heist

Brooklyn man Thomas John Sfraga, aka T.J. Stone, has pleaded guilty to wire fraud, swindling over a dozen victims out of $1.3 million in a brazen cryptocurrency scam.

Sfraga, 55, of Brooklyn, was charged with wire fraud after a federal investigation found he lied to friends, neighbors, and investors about his business ventures, including Vandelay Contracting Corp. and Build Strong Homes LLC.

‘For years, Sfraga brazenly lied to friends, neighbors and investors to swindle over $1.3 million of their hard-earned life savings,’ said United States Attorney Breon Peace. ‘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.’

Sfraga’s scheme, which ran from 2019 to 2022, involved convincing victims to loan him money for or invest in multiple fraudulent investments, including purchasing, renovating, and ‘flipping’ homes. He even convinced one victim to lend him $100,000 in cash for a non-existent major construction project.

‘He promised the victims returns on their investments as high as 60% in three months,’ said Peace. ‘In reality, however, Sfraga converted the monies to his own benefit, to pay expenses, and to pay earlier victims and business associates.’

The government’s case is being handled by the Office’s Business and Securities Fraud Section, with Assistant United States Attorney John Vagelatos in charge of the prosecution.

Sfraga faces a maximum sentence of 20 years’ imprisonment and restitution of over $1.3 million when he is sentenced. His case, E.D.N.Y. Docket No. 24-CR-194 (FB) (LB), is a stark reminder that cryptocurrency scams can have devastating consequences for victims.