John Sabo, 71, a former Spring Lake, New Jersey resident now living in Florida, has been sentenced to six years in federal prison for orchestrating a nearly decade-long fraudulent business financing scheme that stole more than $4.7 million from 33 victims.
Sabo pleaded guilty to one count of wire fraud and was sentenced by U.S. District Judge Michael A. Shipp to 72 months in prison, along with three years of supervised release and an order to pay full restitution and forfeiture totaling $4,788,325.
Operating through a fake company, Bankers Capital LLC, Sabo falsely advertised services for credit enhancement and multimillion-dollar business funding. Between November 2014 and August 2023, he collected large upfront “retainer” or “advance” fees from small business owners and entrepreneurs, promising he could secure loans backed by nonexistent financial instruments like medium-term notes and carbon credits.
According to prosecutors, Sabo diverted victim funds for personal use, including paying off debts and using funds from new victims to repay earlier ones—a classic Ponzi tactic. Even after being criminally charged in 2022, Sabo continued misleading victims by email, falsely promising their funding was “imminent.”
“Instead of helping people build businesses, he built a web of lies,” said U.S. Attorney Alina Habba. “This was a calculated, long-term scheme that exploited honest entrepreneurs.”
The scheme resulted in zero legitimate financing for victims.
The case was investigated by the FBI, led by Acting Special Agent in Charge Terence G. Reilly, and prosecuted by Assistant U.S. Attorneys Jennifer Kozar and Carolyn Silane of the Economic Crimes Unit in Newark.
