NEWARK, NJ. – Vincent Dispoto Jr., a 66-year-old from Belmar, New Jersey, was arrested today on charges related to a fraudulent scheme spanning over three decades.
The owner of the purported investment firm, Giddeon Financial Services, and the alleged mortgage company, Liberty Mortgage Services, Dispoto is accused of defrauding at least 30 victims out of more than $5 million. U.S. Attorney Philip R. Sellinger announced the charges, including one count of wire fraud, with Dispoto scheduled for an initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court this afternoon.
Court documents reveal that since 1988, Dispoto attracted investors, many of whom were elderly, by falsely promising to invest their funds in low-risk products with guaranteed returns, such as municipal bonds and certificates of deposits.
He also claimed to be funding loans and mortgages for medical professionals, purportedly offering long-term returns through interest payments. Victims received fraudulent financial statements indicating their investments were growing significantly.
Contrary to his assurances, Dispoto did not invest the funds as promised. He operated a Ponzi-like scheme, using new investments to pay fake returns to earlier investors and diverting funds to support his gambling and other personal expenses. This elaborate fraud led to over $5 million in losses for the victims involved.