The U.S. Department of Justice has sentenced Thomas John Sfraga, better known as T.J. Stone, to 45 months in federal prison for orchestrating an elaborate investment scam that defrauded victims out of more than $2 million.
Operating between 2016 and 2022, Sfraga presented himself as a seasoned serial entrepreneur involved in real estate, podcasting, media, and cryptocurrency. Using his online persona as T.J. Stone, he lured unsuspecting investors from Brooklyn, Staten Island, and Long Island into fake ventures promising substantial returns.
Among his fraudulent fronts were Build Strong Homes LLC and Vandelay Contracting Corp., which he used to solicit funds under false pretenses. One victim gave him $100,000 for a supposed construction startup, while another was convinced to invest in a fictional crypto wallet promising a 60% return in 90 days.
Rather than investing the funds, Sfraga used the money for personal expenses and to repay earlier victims in a Ponzi-like fashion. At least 17 victims were impacted by the scheme.
U.S. Attorney John Durham noted that 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.”
After the scheme began to unravel, Sfraga fled to Arizona under a false identity but was later apprehended in Las Vegas. He pleaded guilty to wire fraud in May 2024, and on March 13, U.S. District Judge Frederic Block handed down the 45-month prison sentence—well below the 20-year maximum.
In addition to the prison term, Sfraga must pay $1,337,000 in forfeiture, with full restitution to victims still pending determination.
