Brooklyn conman’s fake ‘Seinfeld’ business becomes $2 million fraud scheme
A Brooklyn man turned a classic "Seinfeld" joke into a real-life scam, defrauding investors out of $2 million using a fake business called Vandelay Contracting Corporation. Now, he’s sentenced to nearly four years in prison.
A Brooklyn man took inspiration from a classic “Seinfeld” joke and turned it into a massive scam, defrauding investors out of over $2 million. Thomas John Sfraga, 56, was sentenced to nearly four years in prison for his fraudulent activities, which included fabricating businesses like the Vandelay Contracting Corporation, a direct nod to the show’s famous fictional company.
Authorities revealed that Sfraga lured investors with promises of lucrative business opportunities, but the money was never used for legitimate ventures. Instead, he spent the funds on personal expenses, leaving victims with nothing. His sentencing marks another case of pop culture references being exploited for criminal gain.
Brooklyn scammer who named company 'Vandelay,' like the 'Seinfeld' joke, gets nearly 4 years in prison.Photo: New York Daily Times.
A ‘Seinfeld’ joke becomes a costly scam
The Vandelay Contracting Corporation was a clear reference to “Seinfeld,” where George Costanza often used the fictional Vandelay Industries as a fake employer. Sfraga, however, used it as a real front to deceive investors. Prosecutors detailed how he convinced victims to invest in fake companies, promising high returns that never materialized. According to court documents, Sfraga’s fraudulent scheme spanned several years, involving multiple fake businesses beyond just Vandelay Contracting. He assured investors that these ventures were profitable, but instead of using the funds for business operations, he diverted them for personal gain.
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.”
New York crypto personality used 'Seinfeld' joke in fraud, feds reveal. Photo: NBC New York.
Justice served: Prison time for the conman
After an extensive investigation, authorities charged Sfraga with wire fraud and other financial crimes. Victims, many of whom lost their life savings, testified about the devastating impact of his deception. The court ultimately sentenced him to nearly four years behind bars, along with a requirement to pay restitution. This case serves as a warning about investment fraud, reminding people to research businesses thoroughly before committing funds. While “Seinfeld” fans might chuckle at the Vandelay reference, Sfraga’s victims are left dealing with the financial consequences of his elaborate scam.
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.