Jason Alexander as George Costanza.
Maria McCarty | NBCU Photobank | NBCUniversal | Getty Images
Oh no, no, no, this cryptocurrency scammer is not laughing anymore.
A New York man defrauded friends, neighbors and investors out of more than $1.3 million by, among other things, getting them to invest in a bogus real estate project involving a company named after a movie joke. Classic TV comedy “Seinfeld” and a fictitious cryptocurrency, federal prosecutors announced Friday.
The Brooklyn U.S. Attorney’s Office said in a statement that from 2019 to 2022, Thomas John Sfraga, 55, “was the owner and president of multiple companies, including Vandelay Contracting Corporation and Build Strong Homes LLC. “I was doing it,” he announced.
George, a character from the TV show Seinfeld, [Costanza] Falsely claimed to have been interviewed for a fictitious company Vandelay Industrial Co., Ltd.In the episode, the ever-unlucky Costanza claims he was looking for a job as a latex salesman.
Prosecutors say Sfraga, who took on the crypto personality role of “TJ Stone,” pitched himself as a serial entrepreneur with experience in real estate development, media relations, podcasting and cryptocurrencies, including one in New York. This included hosting and emceeing virtual currency events.
Prosecutors said Sfraga promised his victims a 60% return on investment over three months, but in reality used the funds to “pay for expenses and make payments to previous victims and business associates.” He said he used it for his own benefit.
Sfraga, a Brooklyn resident, pleaded guilty Thursday in Brooklyn federal court to wire fraud charges, prosecutors said.
He faces up to 20 years in prison and could be ordered to pay more than $1.3 million in restitution.