Brooklyn resident receives sentencing for fraudulent scheme reminiscent of ‘Seinfeld’

Thomas John Sfraga, also known as TJ Stone, was sentenced to nearly four years in prison for defrauding investors of over $2 million in a Ponzi scheme involving fake companies, including the Vandelay Contracting Corporation. The scheme was reminiscent of a Seinfeld episode where the character George Costanza creates a fake company called Vandelay Industries. Sfraga stole from friends, neighbors, and parents of children who played on teams with his own children, as well as individual cryptocurrency investors. He used the money for personal expenses and to pay back victims to earn their trust. Sfraga’s scams ran from 2016 to 2022, during which he convinced at least 17 people to invest in real estate and cryptocurrency ventures that turned out to be fake. Eventually, investors caught on and Sfraga fled to Arizona under a false identity and later to Nevada, where he was arrested for not paying his casino bill. He was sentenced to 45 months in prison and ordered to forfeit $1.3 million. Despite having a seemingly stable life with a supportive wife and successful podcast, Sfraga chose to cheat and swindle his neighbors and friends instead of living a productive, law-abiding life. The case serves as a cautionary tale about the dangers of falling for Ponzi schemes and fraudulent investments.