Brooklyn man sentenced for $2 million Ponzi scheme

Thomas John Sfraga, a 56-year-old Brooklyn man, was sentenced to nearly four years in prison for a Ponzi scheme that defrauded at least 17 people of over $2 million. He used a fake company named after a "Seinfeld" joke to lure investors. Sfraga, who operated from 2016 to 2022, promised returns from real estate and cryptocurrency ventures. Instead, he used the funds for personal expenses and to pay earlier investors, creating a cycle of deception. After fleeing to Arizona and Nevada, he was arrested in December 2023 for unrelated charges. Sfraga pleaded guilty to wire fraud in May 2024 and was ordered to forfeit $1.3 million.