Florida Man Charged with $1 Million ‘Up-Front’ Fee Scheme

NEWARK, N.J. – A Florida man who previously resided in New Jersey was arrested and charged with defrauding multiple victims out of more than $1 million through an “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced today.

John Sabo, 69, of Naples, Florida, is charged by complaint with two counts of wire fraud. He was arrested and made his initial appearance on Nov. 17, 2022, in the U.S. District Court for the Middle District of Florida.

According to documents filed in this case and statements made in court:

From November 2014 through the present, Sabo fraudulently induced his multiple victims to pay him thousands of dollars in “up-front” fees. Sabo falsely represented that, through his company Bankers Capital LLC, he could secure financing and collateral that the victims could use for their businesses. However, neither Sabo nor Bankers Capital possessed or had access to the financing and collateral that Sabo promised. Instead of using the victims’ money as promised, Sabo diverted millions of dollars out of Bankers Capital, primarily for personal expenses, which included payments to Sabo’s creditors and over $250,000 in golf-related expenses. In total, Sabo’s scheme resulted in over $1.77 million in losses to victims. 

Each charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Carolyn Silane of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.