Former New Jersey Resident Sentenced To 72 Months For $4.7 Million ‘Up Front’ Fee Scheme

TRENTON, N.J. –  A Florida man who previously resided in New Jersey was sentenced to 72 months’ imprisonment for defrauding approximately 33 victims out of more than $4.7 million through an “upfront-fee” scheme that spanned nearly a decade, U.S. Attorney Alina Habba announced.

John Sabo, 71, formerly of Spring Lake, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of wire fraud. 

According to documents filed in the case and statements made in court:

From in or around November 2014 through at least in or around August 2023, Sabo fraudulently induced his multiple victims to collectively pay millions of dollars in “up-front” or advance fees to his company, Bankers Capital LLC, in exchange for the promise to provide various forms of collateral and/or secure millions of dollars in financing for each of the victims’ business projects.  However, neither Sabo nor Bankers Capital possessed or had access to the financing and collateral that Sabo promised.

Instead of using the victims’ money as promised, Sabo diverted millions of dollars out of Bankers Capital, primarily for personal expenses, which included payments to Sabo’s creditors, and to pay back other victims of the scheme.  Even after he was charged by complaint in November 2022 with engaging in the wire fraud scheme, Sabo continued to provide false assurances to victims that they would receive the promised collateral or financing.  In total, Sabo’s scheme resulted in $4,788,325 in losses to victims.

In addition to the prison term, Judge Shipp ordered Sabo to pay forfeiture and restitution to the victims of his scheme, each in the total amount of $4,788,325, and sentenced Sabo to 3 years of supervised release. 

U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Carolyn Silane of the U.S. Attorney’s Office Economic Crimes Unit in Newark.                                         

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Defense counsel:  Michael Robertson, Esq.