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TRENTON, N.J. — A former New Jersey resident was sentenced to six years in federal prison for orchestrating an advance-fee fraud scheme that defrauded dozens of victims out of more than $4.7 million over nearly a decade, U.S. Attorney Alina Habba announced.
John Sabo, 71, formerly of Spring Lake, New Jersey, and now residing in Florida, was sentenced to 72 months in prison after previously pleading guilty to one count of wire fraud before U.S. District Judge Michael A. Shipp. Sabo was also ordered to pay $4,788,325 in restitution and forfeiture and will serve three years of supervised release following his prison term.
Fraud Spanning Nearly a Decade
Court documents and statements reveal that from approximately November 2014 through August 2023, Sabo operated an “up-front fee” scheme through his company, Bankers Capital LLC. He induced approximately 33 victims to pay advance fees with the promise of securing financing or providing collateral for their business ventures.
However, Sabo had no actual means of securing the promised funds or collateral. Instead, he used the victims’ money for personal expenses, to repay creditors, and to perpetuate the fraud by paying off earlier victims.
Despite being charged by criminal complaint in November 2022, Sabo continued to mislead victims, assuring them that their financing or collateral would soon be delivered.
Law Enforcement Response
U.S. Attorney Habba credited special agents of the FBI, led by Acting Special Agent in Charge Terence G. Reilly, with investigating the case. Assistant U.S. Attorneys Jennifer Kozar and Carolyn Silane of the Economic Crimes Unit in Newark prosecuted the matter.
The case serves as a reminder of the dangers of advance-fee schemes and the commitment of federal authorities to pursue financial fraudsters who exploit victims under false pretenses.
