A Florida man, formerly a resident of New Jersey, has been sentenced to six years in prison for orchestrating an “upfront-fee” scheme that defrauded 33 victims out of over $4.7 million. U.S. Attorney Alina Habba announced the sentencing.
John Sabo, aged 71 and previously from Spring Lake, New Jersey, had earlier pleaded guilty before U.S. District Judge Michael A. Shipp to wire fraud charges.
Court documents and statements reveal that from November 2014 to August 2023, Sabo deceived victims into paying millions in advance fees through his company, Bankers Capital LLC. These payments were supposedly in exchange for collateral or financing for their business projects—financing that neither Sabo nor his company could provide.
Instead of fulfilling these promises, Sabo used the funds for personal expenses and to repay other victims. Despite being charged with wire fraud in November 2022, he continued misleading victims about receiving promised funds or collateral. The fraudulent activities resulted in losses totaling $4,788,325.
In addition to imprisonment, Judge Shipp ordered Sabo to pay forfeiture and restitution totaling $4,788,325 and imposed three years of supervised release.
The investigation was credited by U.S. Attorney Habba to FBI special agents under Acting Special Agent in Charge Terence G. Reilly’s direction.
Assistant U.S. Attorneys Jennifer Kozar and Carolyn Silane from the Economic Crimes Unit in Newark represented the government.
Defense counsel was provided by Michael Robertson, Esq.
