A Florida man, previously residing in New Jersey, has been sentenced to 72 months in prison for orchestrating an "upfront-fee" scheme that defrauded approximately 33 victims of over $4.7 million. U.S. Attorney Alina Habba announced the sentencing of John Sabo, 71, who had pleaded guilty to one count of wire fraud before U.S. District Judge Michael A. Shipp.
Court documents and statements reveal that from November 2014 through August 2023, Sabo convinced his victims to pay advance fees to his company, Bankers Capital LLC, promising them collateral or financing for their business projects. However, neither Sabo nor his company possessed the promised resources.
Instead of fulfilling his promises, Sabo used the funds for personal expenses and to repay other victims. Despite being charged with wire fraud in November 2022, he continued assuring victims they would receive what was promised. The scheme resulted in total losses of $4,788,325.
Judge Shipp also ordered Sabo to pay forfeiture and restitution amounting to $4,788,325 and imposed a three-year supervised release term following his imprisonment.
U.S. Attorney Habba credited the FBI's special agents under Acting Special Agent in Charge Terence G. Reilly for their investigation leading to this outcome. The case was prosecuted by Assistant U.S. Attorneys Jennifer Kozar and Carolyn Silane from the Economic Crimes Unit in Newark.
The defense counsel for John Sabo was Michael Robertson, Esq.
