A man from New York pleaded guilty to charges of fraud last week after utilizing various deceptive schemes involving cryptocurrencies and real estate to deceive investors out of more than $1.3 million.

According to an announcement from the U.S. Attorney’s Office for the Eastern District of New York, the man, known as Thomas John Sfraga but operating under the alias “T.J. Stone,” defrauded over a dozen victims, including friends and neighbors.

Sfraga portrayed himself as a seasoned entrepreneur with expertise in real estate development, media relations, podcasting, and cryptocurrencies. He even claimed to have hosted crypto events in New York City.

To carry out his fraudulent activities, Sfraga created fictitious businesses, which he named Vandelay Contracting Corp. and Build Strong Homes LLC. The U.S. Attorney’s Office suggests that the name Vandelay may have been inspired by Vandelay Industries, a fictional company from the television show “Seinfeld.”

Sfraga deceived victims in Brooklyn, Staten Island, and Long Island by pretending to purchase, renovate, and sell residential properties. He also convinced one victim to invest in a fake crypto wallet and persuaded another investor to contribute $100,000 in cash towards a nonexistent construction project.

However, instead of making legitimate investments, Sfraga used the funds to enrich himself and repay previous investors.

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

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