By: Richard L. Smith
A former New Jersey resident now living in Florida has been sentenced to six years in federal prison for orchestrating a long-running fraudulent scheme that caused millions in losses to dozens of victims across the country, federal officials announced.
According to a statement released by the U.S. Department of Justice, 71-year-old John Sabo, formerly of Spring Lake, New Jersey, was sentenced to 72 months in prison for defrauding approximately 33 individuals of more than $4.7 million through an “upfront-fee” financing scam that spanned nearly a decade.
Sabo previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of wire fraud in connection with the scheme, which ran from November 2014 through at least August 2023.
Federal prosecutors said Sabo convinced his victims to pay advance fees to his company, Bankers Capital LLC, under the false promise that he would provide substantial financing or collateral for their business ventures.
In reality, neither Sabo nor his company had access to the funding he claimed to offer.
Instead of delivering on his promises, Sabo used the money for personal expenses, including paying off creditors and using funds from newer victims to repay earlier ones, according to court records.
Prosecutors said he continued making false assurances to victims even after being formally charged in November 2022.
U.S. officials said Sabo’s fraudulent conduct caused financial losses totaling $4,788,325.
In addition to the prison sentence, Judge Shipp ordered Sabo to pay full restitution and forfeiture in the amount of $4,788,325.
Upon his release, he will also be subject to three years of supervised release.
