TRENTON, N.J. — A former New Jersey resident was sentenced to six years in federal prison for running a nearly decade-long wire fraud scheme that defrauded 33 victims of more than $4.7 million, federal prosecutors announced.
John Sabo, 71, now of Florida and formerly of Spring Lake, pleaded guilty to one count of wire fraud before U.S. District Judge Michael A. Shipp. He was sentenced to 72 months in prison and ordered to pay full restitution and forfeiture totaling $4,788,325.
From November 2014 to August 2023, Sabo operated an advance-fee scheme through his company, Bankers Capital LLC. He falsely promised victims access to substantial collateral or financing for business projects in exchange for up-front payments, according to court records.
In reality, neither Sabo nor Bankers Capital possessed the financing or collateral he guaranteed. Instead, he used the funds for personal expenses, repaying creditors, and returning money to earlier victims to prolong the fraud, prosecutors said.
Even after being charged by complaint in November 2022, Sabo continued to assure victims they would receive the agreed-upon funding, extending the fraudulent activity into the following year.
Court orders full restitution and supervision
In addition to his prison sentence, Sabo was ordered to serve three years of supervised release upon completion of his term. Judge Shipp also imposed financial penalties requiring Sabo to pay restitution and forfeiture matching the total victim losses.
Sabo’s scheme spanned multiple states and targeted individuals seeking business financing, according to documents filed by the U.S. Attorney’s Office. Victims paid significant fees up front based on representations that were never fulfilled.
The U.S. Attorney’s Office described the conduct as ongoing and deliberate, pointing to continued deception after charges were filed.
