Former NJ Resident Sentenced to Six Years for $4.7 Million Fraud Scheme

John Sabo defrauded 33 victims over nearly a decade through a false financing scheme operated from Bankers Capital LLC

John Sabo, 71, formerly of Spring Lake, New Jersey, has been sentenced to 72 months in federal prison for orchestrating a long-running fraud scheme that deceived more than 30 victims out of approximately $4.7 million, according to an announcement from U.S. Attorney Alina Habba.

Sabo, now a Florida resident, previously pleaded guilty to one count of wire fraud before U.S. District Judge Michael A. Shipp. Court filings and statements revealed that from November 2014 through August 2023, Sabo operated an “up-front fee” scheme through his company, Bankers Capital LLC. He promised victims access to business financing or collateral in exchange for substantial advance payments. However, neither Sabo nor his firm possessed the financial resources or assets he claimed they could provide.

Instead of using the collected funds for legitimate business purposes, Sabo diverted the money to cover personal expenses, settle debts, and repay earlier victims in a pattern consistent with fraudulent financial operations. Notably, Sabo continued to offer false assurances to clients even after he was charged in November 2022.

The fraudulent activity caused a total loss of $4,788,325 to approximately 33 individuals and entities. In addition to his six-year prison term, Judge Shipp ordered Sabo to pay full restitution and forfeiture in the amount of $4,788,325. He was also sentenced to three years of supervised release upon completing his prison term.

The investigation was conducted by special agents of the FBI under the direction of Acting Special Agent in Charge Terence G. Reilly. Assistant U.S. Attorneys Jennifer Kozar and Carolyn Silane of the Economic Crimes Unit in Newark represented the government in the case.