New York Man Arrested for Swindling $1,300,000 in Scheme Involving Fictitious Crypto Wallet – The Daily Hodl

A New York man pled guilty to fraud charges last week after using various fake crypto and real estate schemes to swindle investors out of more than $1.3 million.

Thomas John Sfraga, who went by the alias “T.J. Stone,” defrauded more than a dozen victims, including friends and neighbors, according to an announcement from the U.S. Attorney’s Office for the Eastern District of New York.

Sfraga painted himself as a serial entrepreneur with experience in real estate development, media relations, podcasting and cryptocurrencies. He also claimed that he emceed crypto events in New York City.

To facilitate his fraud, Sfraga pretended to own multiple businesses, which he called Vandelay Contracting Corp. and Build Strong Homes LLC.

The U.S. Attorney’s Office notes that Vandelay could have been named after Vandelay Industries, a fictitious company in the television show “Seinfeld.”

Sfraga bilked victims in Brooklyn, Staten Island and Long Island by pretending to purchase, renovate and flip residential properties. He also defrauded a victim into investing in a fake crypto wallet and convinced an investor to sink $100,000 in cash to prop up a non-existent construction project.

But instead of making legitimate investments, Sfraga used the funds to enrich himself and pay older investors.

Sfraga faces a maximum sentence of 20 years in prison and has been ordered to pay restitution of more than $1.33 million.

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• Source: https://dailyhodl.com/2024/05/21/new-york-man-arrested-for-swindling-1300000-in-scheme-involving-fictitious-crypto-wallet/