A podcaster turned crypto conman swindled investors out of $2 million, using fake businesses and pop culture references before vanishing—until a Vegas arrest sealed his fate.
From Podcast Fame to Prison: How Investors Were Fooled for Years
The U.S. Department of Justice (DOJ) announced on March 14 that Brooklyn podcaster and cryptocurrency personality Thomas John Sfraga, also known as “T.J. Stone,” has been sentenced to 45 months in prison for wire fraud. U.S. District Judge Frederic Block handed down the sentence in federal court in Brooklyn, also ordering Sfraga to forfeit $1,337,700, with restitution to be determined later. Sfraga, who pleaded guilty in May 2024, defrauded real estate and cryptocurrency investors of more than $2 million through fraudulent schemes, including a business named after a fictional company from the television show Seinfeld.
According to court filings, between 2016 and 2022, Sfraga posed as a successful entrepreneur and the owner of businesses such as Build Strong Homes LLC and Vandelay Contracting Corp., a name referencing “Vandelay Industries” from Seinfeld. Prosecutors stated:
Sfraga held himself out as ‘T.J. Stone,’ a serial entrepreneur with experience in real estate development, media relations, podcasting, and cryptocurrencies, which included acting as the emcee of many cryptocurrency events in New York.
Authorities revealed that he deceived at least 17 victims in Brooklyn, Staten Island, and Long Island into investing in fraudulent ventures, including fake real estate deals and a non-existent digital asset scheme.
One victim was convinced to loan Sfraga $100,000 for a construction project that never existed. Another was tricked into placing money in a bogus crypto investment, as prosecutors explained: “On yet another occasion, Sfraga convinced a victim to invest in a fictitious cryptocurrency ‘virtual wallet.’” Instead of investing the money, he spent it on personal expenses and to pay off earlier victims. When law enforcement closed in, he fled to Arizona under a false identity but was later arrested in Las Vegas after skipping out on a bill at the Wynn Casino.
Emphasizing that the fraud caused severe financial and emotional harm to those who trusted him, U.S. Attorney John J. Durham condemned Sfraga’s actions:
Sfraga callously stole from friends, next-door neighbors, and the parents of children who played on teams with his own children, as well as from individual cryptocurrency investors.
