Nola Reporter

A Mississippi resident, John Sposato, aged 73, has been sentenced for bank fraud conspiracy and violating the terms of his supervised release. The sentencing was announced by U.S. Attorney Duane A. Evans on February 8, 2025.

Sposato was sentenced to ten months in prison and three years of supervised release by United States District Judge Eldon E. Fallon after pleading guilty to conspiracy to commit bank fraud. This offense is in violation of Title 18, United States Code, Sections 371 and 1344. In a separate proceeding, United States District Judge Susie Morgan imposed an additional six-month prison sentence for violating the terms of his previous supervised release.

According to court documents, Sposato's period of supervised release began following his release from prison around August 9, 2022. During this time, he claimed presidency over several companies including Pegasus Consulting and Development, LLC. These entities reportedly neither conducted any work nor generated income.

Sposato opened an account at Keesler Federal Credit Union under Pegasus Consulting's name and attempted to deposit a $10,000 check from a co-conspirator on March 27, 2023. The check was counterfeit and drawn on an account belonging to a non-profit organization supporting a Florida public library.

When questioned about the transaction by a probation officer, Sposato falsely claimed the check was payment for consulting services he provided both personally and through an associate named Jack Morgan for the non-profit entity. It was later revealed that Sposato knew he had not earned the check nor performed any work for the organization.

U.S. Attorney Evans acknowledged the contributions of the United States Probation Office and Federal Bureau of Investigation in this case's investigation. Assistant United States Attorney Jordan Ginsberg led the prosecution as Chief of the Public Integrity Unit.