Thomas John Sfraga, referred to as “TJ Stone,” entered a responsible plea to wire fraud fees in a Brooklyn federal court docket on Thursday.
Based on the U.S. Division of Justice, Sfraga was accused of deceiving traders with the promise of as much as 60% returns inside three months by a non-existent cryptocurrency digital pockets. As a substitute of fulfilling these guarantees, he allegedly diverted these funds for private use and to placate earlier victims of his fraudulent actions.
“For years, Sfraga brazenly lied to friends, neighbors, and investors to swindle over $1.3 million of their hard-earned life savings,” commented Breon Peace, the U.S. legal professional for the Japanese District of New York, on the case.
Throwback to ‘Seinfeld’
Moreover, Sfraga claimed possession of “Vandelay Contracting Corp.” and “Build Strong Homes 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 traders into funding non-existent development initiatives.
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 by yields. Based on a December 2023 FBI grievance, Sfraga misrepresented the dangers concerned in cryptocurrency staking to potential traders, claiming it was an “ironclad situation” with “no risk.”
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.
