Thomas John Sfraga, famously known as T. J. Stone, pleaded guilty to wire fraud in the Brooklyn federal court. He confessed to charges of fraud, which led to his defrauding investors of over $1.33 million, as per the office of US Attorney, East District of New York..
According to officials, Stone operated several graphics cards that managed the creation of 150 cryptocurrency-generating coins daily through famous schemes. Post his confession, 55-year-old Stone is facing a prison term of maximum 20 years as well as restitution of defrauded $1.33 million.
Officials added that Stone used fake names like Vandelay Contracting Corp. and Build Strong Homes LLC, taken from the popular TV show Seinfeld. He convinced investors to invest in phony projects such as home renovations and a fake cryptocurrency wallet, promising returns of up to 60% in three months.
The guilty plea was presented to the Chief United States Magistrate Judge Lois Bloom. The FBI and the U. S. Attorney’s Office for the Eastern District of New York in a probe are following.
Assistant United States Attorney John Vagelatos, along with Madison Bates, the legal assistant specialist, are leading the investigation.
Also read: FBI Alerts on Crypto Scams in Houston Area
