Latest news with #Sfraga
Yahoo
02-05-2025
- Politics
- Yahoo
As Donald Trump eyes Greenland and Arctic resources, America's ambassadorship for the region goes unfilled
Nathaniel HerzNorthern Journal Five weeks before Election Day, at an evening ceremony at the office of the U.S. Department of State, America's first-ever Arctic ambassador was sworn into his new job. Barely 100 days later, on Jan. 20, Mike Sfraga resigned — departing his post, like other ambassadors, as Donald Trump took power. Now, Sfraga's position remains unfilled. And Alaskans and others tracking America's stance toward the Arctic are waiting to see when, or if, the new administration will offer a clear vision or plans for the region that the U.S., its allies and rivals are increasingly eying as a zone for commerce and military activity. 'It's feeling very quiet,' said Diane Hirshberg, who leads a research institute at University of Alaska Anchorage and is academic vice president at an international network of schools called University of the Arctic. 'We're just in this weird land of uncertainty.' At a recent working group meeting of an international commission called the Arctic Council, Hirshberg said, the American government representative shared nothing, "other than that the U.S. reserves the right to comment at a later date." Experts say that Trump's outspoken desire to annex Greenland makes clear that he's aware of the Arctic's growing strategic value. But they also say that his distrust of traditional European alliances and his targeting of research institutions risk undermining the nation's interests in the region. 'There are other nations questioning us,' Sfraga said at an Alaska legislative hearing this month. 'Every one of our allies in the North and elsewhere, they're questioning how committed we are.' Republican U.S. Sen. Lisa Murkowski, who's long prodded the federal government to develop its Arctic policy, said she thinks the new administration appreciates the significance of the region for its natural resources and importance to American national security. But she said she's pushing for that awareness to be backed up with qualified personnel — new appointees to Arctic-focused positions like the ambassador job. 'At some of these Arctic conferences, I'm there," she said in an interview. "But the U.S. delegation has to be more than just Lisa Murkowski.' Former President Joe Biden created the Arctic ambassador position through an executive action, and it's not set out in law — a fact that Murkowski, via legislation she introduced earlier this year, hopes to change. She said she's also submitted names to the Trump administration to consider for the post and is concerned that if the decision is delayed, the new ambassador nominee could end up being a campaign donor chosen "as, kind of, a political favor." Murkowski said she'd love to see Sfraga reappointed to the position. Biden originally nominated Sfraga, an Alaskan geographer who'd worked at a think tank and in Alaska's university system, to the ambassadorship in early 2023. Murkowski recommended Sfraga for the post and lobbied for his confirmation. But it took more than 18 months for the U.S. Senate to take an up or down vote. Some Republican senators, led by Idaho Republican James Risch, criticized Sfraga's relationships with officials and institutions from China and Russia. Sfraga said in an email that filling his old post is in America's best interest. 'The United States requires a Senate-confirmed ambassador so we can inform, influence and appropriately lead Arctic-related issues and policies throughout the region, clearly articulate U.S. Arctic goals and objectives, and ensure our policies and efforts are coordinated and advanced at home,' he said. Asked whether he'd take the job back if chosen by Trump — as suggested by Murkowski — Sfraga thanked the senator for her 'unwavering support.' "It is now time to consider other opportunities to advance U.S. and allied partners' interests in the Arctic, and Alaska's unique role in the region's future," he said. Alaska's sole member of the U.S. House, Republican Nick Begich III, said in an emailed statement that an Arctic ambassador supports a strong presence in the region, 'which is vital for national security.' 'I will continue to work with the executive branch and members of the Alaska delegation to advocate for an Arctic policy that includes leadership staffing as a component of our national security strategy,' Begich said. The State Department, in an emailed statement to Northern Journal, did not directly answer a question about if and when the new administration plans to replace Sfraga. But it did say that the Office of the Ambassador-at-Large for Arctic Affairs 'remains funded and operational.' That's in contrast to the Wilson Center — a 55-year-old think tank that once employed Sfraga when he was the founding director of the center's Polar Institute. The center, which focuses on foreign policy, has been almost entirely shut down by the new administration, with more than 100 employees placed on leave and just a handful of congressionally mandated positions remaining, according to the New York Times. The Polar Institute's current director did not respond to a request for comment. At the U.S. Department of Defense, meanwhile, the administration has filled one top Arctic-focused position. Last month, Steven Schleien, a longtime department official, was named deputy assistant secretary for Arctic and global resilience — with responsibilities that include Arctic security, ocean issues and critical minerals. One other person that experts see as a potentially influential voice on the administration's Arctic policy is Julia Nesheiwat. Nesheiwat currently has no formal role in the administration. But she's a former homeland security advisor to Trump, a former member of the U.S. Arctic Research Commission, and her husband, Mike Waltz, is Trump's national security advisor. Nesheiwat recently traveled with Waltz, Vice President J.D. Vance and other top administration officials to Greenland. She also held a meeting with Republican Alaska Gov. Mike Dunleavy at an energy conference in Texas last month. Murkowski said she's spoken about Arctic policy with Marco Rubio, the secretary of state and her former U.S. Senate colleague. She also sent the president and other top administration officials a letter last month outlining her Arctic-related priorities — including the appointment of a special presidential assistant focused on the region, and the creation of a new deputy assistant secretary for Arctic affairs at the State Department. Murkowski, who's publicly clashed with Trump at times, acknowledged that some in the new administration 'would love to deep-six anything that I might suggest.' 'But I know that you have people who are genuinely interested in advancing good policy,' she said. 'I think they're looking for suggestions.' This story original misidentified Julia Neisheiwat as a former national security advisor to Donald Trump; she is a former homeland security advisor. This piece was originally published in Northern Journal, a newsletter and news website. Subscribe here.
Yahoo
23-04-2025
- Politics
- Yahoo
As Trump eyes Greenland and Arctic resources, America's ambassadorship for the region goes unfilled
Offshore oilfield service vessels sit docked in the city of Bergen in Norway, an Arctic nation that collaborates with the U.S. on military and other matters. (Photo by Nathaniel Herz/Northern Journal) Five weeks before Election Day, at an evening ceremony at the office of the U.S. Department of State, America's first-ever Arctic ambassador was sworn into his new job. Barely 100 days later, on Jan. 20, Mike Sfraga resigned — departing his post, like other ambassadors, as Donald Trump took power. America's first Arctic ambassador was just confirmed weeks ago. Now he could be out of a job. Now, Sfraga's position remains unfilled. And Alaskans and others tracking America's stance toward the Arctic are waiting to see when, or if, the new administration will offer a clear vision or plans for the region that the U.S., its allies and rivals are increasingly eying as a zone for commerce and military activity. 'It's feeling very quiet,' said Diane Hirshberg, who leads a research institute at University of Alaska Anchorage and is academic vice president at an international network of schools called University of the Arctic. 'We're just in this weird land of uncertainty.' At a recent working group meeting of an international commission called the Arctic Council, Hirshberg said, the American government representative shared nothing, 'other than that the U.S. reserves the right to comment at a later date.' Experts say that Trump's outspoken desire to annex Greenland makes clear that he's aware of the Arctic's growing strategic value. But they also say that his distrust of traditional European alliances and his targeting of research institutions risk undermining the nation's interests in the region. 'There are other nations questioning us,' Sfraga said at an Alaska legislative hearing this month. 'Every one of our allies in the North and elsewhere, they're questioning how committed we are.' Republican U.S. Sen. Lisa Murkowski, who's long prodded the federal government to develop its Arctic policy, said she thinks the new administration appreciates the significance of the region for its natural resources and importance to American national security. But she said she's pushing for that awareness to be backed up with qualified personnel — new appointees to Arctic-focused positions like the ambassador job. 'At some of these Arctic conferences, I'm there,' she said in an interview. 'But the U.S. delegation has to be more than just Lisa Murkowski.' Former President Joe Biden created the Arctic ambassador position through an executive action, and it's not set out in law — a fact that Murkowski, via legislation she introduced earlier this year, hopes to change. She said she's also submitted names to the Trump administration to consider for the post and is concerned that if the decision is delayed, the new ambassador nominee could end up being a campaign donor chosen 'as, kind of, a political favor.' Murkowski said she'd love to see Sfraga reappointed to the position. Biden originally nominated Sfraga, an Alaskan geographer who'd worked at a think tank and in Alaska's university system, to the ambassadorship in early 2023. Murkowski recommended Sfraga for the post and lobbied for his confirmation. But it took more than 18 months for the U.S. Senate to take an up or down vote. Some Republican senators, led by Idaho Republican James Risch, criticized Sfraga's relationships with officials and institutions from China and Russia. Sfraga said in an email that filling his old post is in America's best interest. 'The United States requires a Senate-confirmed ambassador so we can inform, influence and appropriately lead Arctic-related issues and policies throughout the region, clearly articulate U.S. Arctic goals and objectives, and ensure our policies and efforts are coordinated and advanced at home,' he said. Asked whether he'd take the job back if chosen by Trump — as suggested by Murkowski — Sfraga thanked the senator for her 'unwavering support.' 'It is now time to consider other opportunities to advance U.S. and allied partners' interests in the Arctic, and Alaska's unique role in the region's future,' he said. Alaska's sole member of the U.S. House, Republican Nick Begich III, said in an emailed statement that an Arctic ambassador supports a strong presence in the region, 'which is vital for national security.' 'I will continue to work with the executive branch and members of the Alaska delegation to advocate for an Arctic policy that includes leadership staffing as a component of our national security strategy,' Begich said. The State Department, in an emailed statement to Northern Journal, did not directly answer a question about if and when the new administration plans to replace Sfraga. But it did say that the Office of the Ambassador-at-Large for Arctic Affairs 'remains funded and operational.' That's in contrast to the Wilson Center — a 55-year-old think tank that once employed Sfraga when he was the founding director of the center's Polar Institute. The center, which focuses on foreign policy, has been almost entirely shut down by the new administration, with more than 100 employees placed on leave and just a handful of congressionally mandated positions remaining, according to the New York Times. The Polar Institute's current director did not respond to a request for comment. At the U.S. Department of Defense, meanwhile, the administration has filled one top Arctic-focused position. Last month, Steven Schleien, a longtime department official, was named deputy assistant secretary for Arctic and global resilience — with responsibilities that include Arctic security, ocean issues and critical minerals. One other person that experts see as a potentially influential voice on the administration's Arctic policy is Julia Nesheiwat. Nesheiwat currently has no formal role in the administration. But she's a former homeland security adviser to Trump and a former member of the U.S. Arctic Research Commission, and her husband, Mike Waltz, is Trump's national security advisor. Nesheiwat recently traveled with Waltz, Vice President J.D. Vance and other top administration officials to Greenland. She also held a meeting with Republican Alaska Gov. Mike Dunleavy at an energy conference in Texas last month. Murkowski said she's spoken about Arctic policy with Marco Rubio, the secretary of state and her former U.S. Senate colleague. She also sent the president and other top administration officials a letter last month outlining her Arctic-related priorities — including the appointment of a special presidential assistant focused on the region, and the creation of a new deputy assistant secretary for Arctic affairs at the State Department. Murkowski, who's publicly clashed with Trump at times, acknowledged that some in the new administration 'would love to deep-six anything that I might suggest.' 'But I know that you have people who are genuinely interested in advancing good policy,' she said. 'I think they're looking for suggestions.' Nathaniel Herz welcomes tips at natherz@ or (907) 793-0312. This article was originally published in Northern Journal, a newsletter from Herz. Subscribe at this link.
USA Today
16-03-2025
- Business
- USA Today
Brooklyn man's Seinfeld joke turns out to be multi-million dollar scam
Thomas John Sfraga, 56, was sentenced to nearly four years in prison for defrauding investors of over $2 million for companies including the Vandelay Contracting Corporation. A Brooklyn crypto influencer who convinced friends to invest in a bogus company referencing the show Seinfeld was sentenced to nearly four years in federal prison for the multimillion-dollar Ponzi scheme, Department of Justice officials announced Friday. Thomas John Sfraga, a one-time popular podcaster who used the alias "TJ Stone," defrauded at least 17 people of over $2 million that he convinced them to invest in his business ventures, including the Vandelay Contracting Corporation, a reference to a running gag on the hit show. Investments in Sfraga's Vandelay company proved just as phony as Vandelay Industries — a supposed latex manufacturing company — on Seinfeld. On the TV show, George Costanza concocts the company to convince state bureaucrats he's looking for work so that he can receive unemployment checks. But Sfraga, 56, wasn't looking to fool government workers; he robbed friends, neighbors, old classmates and even his child's baseball coach, according to federal court papers. '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,' said John J. Durham, the U.S. Attorney for the Eastern District of New York. 'There was nothing funny about his use of a Seinfeldian company, Vandelay Industries, to carry out this fraud, which caused severe financial and emotional harm to the hard-working men and women who trusted him.' Sfraga ran his scams from 2016 to 2022. He told victims — most from Brooklyn, Long Island and Staten Island — they were investing in real estate and cryptocurrency ventures. He used the money instead for personal expenses and to pay back victims to lull them into trusting him, court filings say. The spurious operation unraveled in a more ignominious way than Costanza's. Investors eventually caught on and Sfraga fled to Arizona under a false identity, federal prosecutors said. He then fled again to Nevada where he was finally arrested for not paying his tab at a casino in Las Vegas, court records said. U.S. District Judge Frederic Block sentenced the 56-year-old in Brooklyn on Thursday to 45 months in prison after pleading guilty to wire fraud in May 2024. The judge also ordered Sfraga to forfeit $1.3 million. The amount Sfraga will have to pay back to his victims will be determined at a later date, federal authorities said. An attorney for Sfraga did not respond to requests for comment. 17 victims of 'Seinfeldian' Ponzi scheme Among the victims, federal prosecutors said, were people Sfraga had known since grade school and parents of children that played on the same team as his child. He found victims at cryptocurrency networking events and stole money gifted to a young couple for their wedding, prosecutors said. The ventures they paid into included a company called Build Strong Homes and a 'virtual wallet' cryptocurrency venture, according to court filings. 'During a challenging time in my life, as I faced a difficult and costly divorce, [Sfraga] and I met socially,' one victim told prosecutors. 'He acknowledged my financial struggles and offered a way to help . . . . He assured me, as a friend.' One person from Brooklyn thought they were joining Sfraga in a clever business scheme, according to an arrest affidavit. The victim worked at a bank and agreed to give Sfraga tips on foreclosures so that the two of them could invest in the properties and resell them. Sfraga made a few payments to the victims before eventually cutting off communication, court filings say. He fooled a victim from Long Island and that victim's father into investing hundreds of thousands of dollars for real estate projects, according to the affidavit. Sfraga later convinced that same victim to give him $50,000 received in wedding gifts, court documents say. When the victim demanded the money back, Sfraga said his dad, who purportedly lived in Alaska, was dying and he had to see him. Sfraga's Vandelay Corporation was supposedly tied to a cryptocurrency company — unnamed in the affadavit — with offices in Manhattan. He met another victim at the company's building in Manhattan where he introduced himself as TJ Stone, in apparent reference an alias used on the podcast 3 People Like This; and convinced him to give him $30,000 for Vandelay 'e wallets,' the affadavit says. Sfraga cashed the check that day. When they scheduled an appointment for Sfraga to create an 'E wallet' on the victim's phone, he didn't show up; and when the victim asked for the money back, Sfraga said he was in the hospital after suffering a heart attack, court filings say. Then Sfraga cut off contact. 'Instead of investing money, I used some of it to cover my own expenses and to pay back earlier investors and business associates,' Sfraga told a judge at a guilty plea hearing. 'I knew that some of the assurances and guaranties that I made to investors were false, and that this was wrong.' Flight and arrest at Las Vegas casino The demand from investors for their money back grew and Sfraga fled to Arizona where he spent his teenage years, according to prosecutors. Sfraga lived there under a false identity on his return, court filings say. Police picked up on an unrelated property crime. Local police discovered his real name, learned he had an open warrant and arrested him on Sep. 18, 2023, according to prosecutors. He posted the $3,600 cash bond and fled again. Police in Nevada arrested Sfraga on an unrelated issue — this time not paying his bill at the Wynn Casino in Las Vegas — on December 23 of that year, prosecutors said. Court filings say Sfraga was then handed over into federal custody on a warrant out of the Eastern District of New York where he was transported and brought to court in Brooklyn on Jan. 22, 2024. Where did Sfraga come from? The mystery of Sfraga's scams is that he enjoyed a decent life, prosecutors said. He was married to a wife described as 'unbelievably supportive' in court filings. He had two healthy children who were part of local teams. And some of his business ventures were successful, earning as much as $100,000 annually, according to prosecutors. Court filings say he also made a 'living wage' from his podcast business which had over a million listeners and was sponsored by advertisers from 2017 to 2018. The podcast, a comedy show called 3 People Like This, has over 100 episodes on Apple Podcasts. He spent his teenage years in Arizona. Sfraga moved to the state with his mom after his parents divorced, court filings say. He went to good schools and lived in a decent area. Prosecutors said he mostly stayed out of trouble then, aside from one unnamed 'incident.' He almost played college baseball for Arizona State University, according to court filings. He married and had two children upon returning to Brooklyn as an adult, court documents say. '[Sfraga] had every opportunity to enjoy a productive, law-abiding life,' prosecutors said. "Instead, he chose to cheat and swindle his neighbors and friends out of their savings to support his lifestyle.' Share your feedback to help improve our site!
Yahoo
15-03-2025
- Business
- Yahoo
Brooklyn man's Seinfeld joke turns out to be multi-million dollar scam
A Brooklyn crypto influencer who convinced friends to invest in a bogus company referencing the show Seinfeld was sentenced to nearly four years in federal prison for the multimillion-dollar Ponzi scheme, Department of Justice officials announced Friday. Thomas John Sfraga, a one-time popular podcaster who used the alias "TJ Stone," defrauded at least 17 people of over $2 million that he convinced them to invest in his business ventures, including the Vandelay Contracting Corporation, a reference to a running gag on the hit show. Investments in Sfraga's Vandelay company proved just as phony as Vandelay Industries — a supposed latex manufacturing company — on Seinfeld. On the TV show, George Costanza concocts the company to convince state bureaucrats he's looking for work so that he can receive unemployment checks. But Sfraga, 56, wasn't looking to fool government workers; he robbed friends, neighbors, old classmates and even his child's baseball coach, according to federal court papers. '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,' said John J. Durham, the U.S. Attorney for the Eastern District of New York. 'There was nothing funny about his use of a Seinfeldian company, Vandelay Industries, to carry out this fraud, which caused severe financial and emotional harm to the hard-working men and women who trusted him.' Sfraga ran his scams from 2016 to 2022. He told victims — most from Brooklyn, Long Island and Staten Island — they were investing in real estate and cryptocurrency ventures. He used the money instead for personal expenses and to pay back victims to lull them into trusting him, court filings say. The spurious operation unraveled in a more ignominious way than Costanza's. Investors eventually caught on and Sfraga fled to Arizona under a false identity, federal prosecutors said. He then fled again to Nevada where he was finally arrested for not paying his tab at a casino in Las Vegas, court records said. U.S. District Judge Frederic Block sentenced the 56-year-old in Brooklyn on Thursday to 45 months in prison after pleading guilty to wire fraud in May 2024. The judge also ordered Sfraga to forfeit $1.3 million. The amount Sfraga will have to pay back to his victims will be determined at a later date, federal authorities said. An attorney for Sfraga did not respond to requests for comment. Ponzi schemes, pig-butchering and more: How to protect yourself from crypto scams Among the victims, federal prosecutors said, were people Sfraga had known since grade school and parents of children that played on the same team as his child. He found victims at cryptocurrency networking events and stole money gifted to a young couple for their wedding, prosecutors said. The ventures they paid into included a company called Build Strong Homes and a 'virtual wallet' cryptocurrency venture, according to court filings. 'During a challenging time in my life, as I faced a difficult and costly divorce, [Sfraga] and I met socially,' one victim told prosecutors. 'He acknowledged my financial struggles and offered a way to help . . . . He assured me, as a friend.' One person from Brooklyn thought they were joining Sfraga in a clever business scheme, according to an arrest affidavit. The victim worked at a bank and agreed to give Sfraga tips on foreclosures so that the two of them could invest in the properties and resell them. Sfraga made a few payments to the victims before eventually cutting off communication, court filings say. He fooled a victim from Long Island and that victim's father into investing hundreds of thousands of dollars for real estate projects, according to the affidavit. Sfraga later convinced that same victim to give him $50,000 received in wedding gifts, court documents say. When the victim demanded the money back, Sfraga said his dad, who purportedly lived in Alaska, was dying and he had to see him. Sfraga's Vandelay Corporation was supposedly tied to a cryptocurrency company — unnamed in the affadavit — with offices in Manhattan. He met another victim at the company's building in Manhattan where he introduced himself as TJ Stone, in apparent reference an alias used on the podcast 3 People Like This; and convinced him to give him $30,000 for Vandelay 'e wallets,' the affadavit says. Sfraga cashed the check that day. When they scheduled an appointment for Sfraga to create an 'E wallet' on the victim's phone, he didn't show up; and when the victim asked for the money back, Sfraga said he was in the hospital after suffering a heart attack, court filings say. Then Sfraga cut off contact. 'Instead of investing money, I used some of it to cover my own expenses and to pay back earlier investors and business associates,' Sfraga told a judge at a guilty plea hearing. 'I knew that some of the assurances and guaranties that I made to investors were false, and that this was wrong.' The demand from investors for their money back grew and Sfraga fled to Arizona where he spent his teenage years, according to prosecutors. Sfraga lived there under a false identity on his return, court filings say. Police picked up on an unrelated property crime. Local police discovered his real name, learned he had an open warrant and arrested him on Sep. 18, 2023, according to prosecutors. He posted the $3,600 cash bond and fled again. Police in Nevada arrested Sfraga on an unrelated issue — this time not paying his bill at the Wynn Casino in Las Vegas — on December 23 of that year, prosecutors said. Court filings say Sfraga was then handed over into federal custody on a warrant out of the Eastern District of New York where he was transported and brought to court in Brooklyn on Jan. 22, 2024. Promises of gold mines: Ex-NFL player gets prison for running Ponzi scheme The mystery of Sfraga's scams is that he enjoyed a decent life, prosecutors said. He was married to a wife described as 'unbelievably supportive' in court filings. He had two healthy children who were part of local teams. And some of his business ventures were successful, earning as much as $100,000 annually, according to prosecutors. Court filings say he also made a 'living wage' from his podcast business which had over a million listeners and was sponsored by advertisers from 2017 to 2018. The podcast, a comedy show called 3 People Like This, has over 100 episodes on Apple Podcasts. He spent his teenage years in Arizona. Sfraga moved to the state with his mom after his parents divorced, court filings say. He went to good schools and lived in a decent area. Prosecutors said he mostly stayed out of trouble then, aside from one unnamed 'incident.' He almost played college baseball for Arizona State University, according to court filings. He married and had two children upon returning to Brooklyn as an adult, court documents say. '[Sfraga] had every opportunity to enjoy a productive, law-abiding life,' prosecutors said. "Instead, he chose to cheat and swindle his neighbors and friends out of their savings to support his lifestyle.' Michael Loria is a national reporter on the USA TODAY breaking news desk. Contact him at mloria@ @mchael_mchael or on Signal at (202) 290-4585. This article originally appeared on USA TODAY: That's a shame: Brooklyn man sentenced for 'Seinfeldian' scheme
Yahoo
15-03-2025
- Business
- Yahoo
Brooklyn man's Seinfeld joke turns out to be multi-million dollar scam
A Brooklyn crypto influencer who convinced friends to invest in a bogus company referencing the show Seinfeld was sentenced to nearly four years in federal prison for the multimillion-dollar Ponzi scheme, Department of Justice officials announced Friday. Thomas John Sfraga, a one-time popular podcaster who used the alias "TJ Stone," defrauded at least 17 people of over $2 million that he convinced them to invest in his business ventures, including the Vandelay Contracting Corporation, a reference to a running gag on the hit show. Investments in Sfraga's Vandelay company proved just as phony as Vandelay Industries — a supposed latex manufacturing company — on Seinfeld. On the TV show, George Costanza concocts the company to convince state bureaucrats he's looking for work so that he can receive unemployment checks. But Sfraga, 56, wasn't looking to fool government workers; he robbed friends, neighbors, old classmates and even his child's baseball coach, according to federal court papers. '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,' said John J. Durham, the U.S. Attorney for the Eastern District of New York. 'There was nothing funny about his use of a Seinfeldian company, Vandelay Industries, to carry out this fraud, which caused severe financial and emotional harm to the hard-working men and women who trusted him.' Sfraga ran his scams from 2016 to 2022. He told victims — most from Brooklyn, Long Island and Staten Island — they were investing in real estate and cryptocurrency ventures. He used the money instead for personal expenses and to pay back victims to lull them into trusting him, court filings say. The spurious operation unraveled in a more ignominious way than Costanza's. Investors eventually caught on and Sfraga fled to Arizona under a false identity, federal prosecutors said. He then fled again to Nevada where he was finally arrested for not paying his tab at a casino in Las Vegas, court records said. U.S. District Judge Frederic Block sentenced the 56-year-old in Brooklyn on Thursday to 45 months in prison after pleading guilty to wire fraud in May 2024. The judge also ordered Sfraga to forfeit $1.3 million. The amount Sfraga will have to pay back to his victims will be determined at a later date, federal authorities said. An attorney for Sfraga did not respond to requests for comment. Ponzi schemes, pig-butchering and more: How to protect yourself from crypto scams Among the victims, federal prosecutors said, were people Sfraga had known since grade school and parents of children that played on the same team as his child. He found victims at cryptocurrency networking events and stole money gifted to a young couple for their wedding, prosecutors said. The ventures they paid into included a company called Build Strong Homes and a 'virtual wallet' cryptocurrency venture, according to court filings. 'During a challenging time in my life, as I faced a difficult and costly divorce, [Sfraga] and I met socially,' one victim told prosecutors. 'He acknowledged my financial struggles and offered a way to help . . . . He assured me, as a friend.' One person from Brooklyn thought they were joining Sfraga in a clever business scheme, according to an arrest affidavit. The victim worked at a bank and agreed to give Sfraga tips on foreclosures so that the two of them could invest in the properties and resell them. Sfraga made a few payments to the victims before eventually cutting off communication, court filings say. He fooled a victim from Long Island and that victim's father into investing hundreds of thousands of dollars for real estate projects, according to the affidavit. Sfraga later convinced that same victim to give him $50,000 received in wedding gifts, court documents say. When the victim demanded the money back, Sfraga said his dad, who purportedly lived in Alaska, was dying and he had to see him. Sfraga's Vandelay Corporation was supposedly tied to a cryptocurrency company — unnamed in the affadavit — with offices in Manhattan. He met another victim at the company's building in Manhattan where he introduced himself as TJ Stone, in apparent reference an alias used on the podcast 3 People Like This; and convinced him to give him $30,000 for Vandelay 'e wallets,' the affadavit says. Sfraga cashed the check that day. When they scheduled an appointment for Sfraga to create an 'E wallet' on the victim's phone, he didn't show up; and when the victim asked for the money back, Sfraga said he was in the hospital after suffering a heart attack, court filings say. Then Sfraga cut off contact. 'Instead of investing money, I used some of it to cover my own expenses and to pay back earlier investors and business associates,' Sfraga told a judge at a guilty plea hearing. 'I knew that some of the assurances and guaranties that I made to investors were false, and that this was wrong.' The demand from investors for their money back grew and Sfraga fled to Arizona where he spent his teenage years, according to prosecutors. Sfraga lived there under a false identity on his return, court filings say. Police picked up on an unrelated property crime. Local police discovered his real name, learned he had an open warrant and arrested him on Sep. 18, 2023, according to prosecutors. He posted the $3,600 cash bond and fled again. Police in Nevada arrested Sfraga on an unrelated issue — this time not paying his bill at the Wynn Casino in Las Vegas — on December 23 of that year, prosecutors said. Court filings say Sfraga was then handed over into federal custody on a warrant out of the Eastern District of New York where he was transported and brought to court in Brooklyn on Jan. 22, 2024. Promises of gold mines: Ex-NFL player gets prison for running Ponzi scheme The mystery of Sfraga's scams is that he enjoyed a decent life, prosecutors said. He was married to a wife described as 'unbelievably supportive' in court filings. He had two healthy children who were part of local teams. And some of his business ventures were successful, earning as much as $100,000 annually, according to prosecutors. Court filings say he also made a 'living wage' from his podcast business which had over a million listeners and was sponsored by advertisers from 2017 to 2018. The podcast, a comedy show called 3 People Like This, has over 100 episodes on Apple Podcasts. He spent his teenage years in Arizona. Sfraga moved to the state with his mom after his parents divorced, court filings say. He went to good schools and lived in a decent area. Prosecutors said he mostly stayed out of trouble then, aside from one unnamed 'incident.' He almost played college baseball for Arizona State University, according to court filings. He married and had two children upon returning to Brooklyn as an adult, court documents say. '[Sfraga] had every opportunity to enjoy a productive, law-abiding life,' prosecutors said. "Instead, he chose to cheat and swindle his neighbors and friends out of their savings to support his lifestyle.' Michael Loria is a national reporter on the USA TODAY breaking news desk. Contact him at mloria@ @mchael_mchael or on Signal at (202) 290-4585. This article originally appeared on USA TODAY: That's a shame: Brooklyn man sentenced for 'Seinfeldian' scheme
