6 Years In Prison For Spring Lake Man Who Ran Bogus Investment Company

SPRING LAKE, NJ — A former Spring Lake resident who now lives in Florida was sentenced to six years in prison for defrauding 33 people out of more than $4.8 million.

The man is John Sabo, 71, formerly of Spring Lake. He did this through an “upfront-fee” scheme that spanned nearly a decade, said U.S. Attorney Alina Habba.

Sabo previously pleaded guilty to one count of wire fraud.

According to this criminal complaint against Sabo, from November 2014 through August 2023, he induced his 33 clients, or victims, to pay “up-front” or advance fees to his company, Bankers Capital LLC.

In exchange, he promised to provide funding and secure millions of dollars in financing for each of the victims’ business projects.

However, neither Sabo nor Bankers Capital had access to the capital and financing he promised.

Instead, Sabo diverted millions of dollars to himself, that he used to pay his own personal expenses, which included payments to his creditors, and to pay back other victims of the scheme in a pyramid scheme. Even after he was criminally charged in November 2022 with engaging in wire fraud, Sabo continued to provide false assurances to victims that they would receive the financing he promised them.

In total, Sabo’s scheme resulted in $4.8 million in losses to his 33 clients.