TRENTON, NJ — A New Jersey man admitted in federal court this week to orchestrating a $6.9 million investment fraud scheme that targeted nearly 50 victims over more than 30 years, many of them elderly, authorities said.
Vincent Dispoto Jr., 67, formerly of Belmar, pleaded guilty to one count of wire fraud before U.S. District Judge Zahid N. Quraishi, U.S. Attorney Alina Habba announced Wednesday. Sentencing is scheduled for August 26.
According to court documents and statements made in court, Dispoto owned and operated Giddeon Financial Services and Liberty Mortgage Services. Beginning in or around 1988, he falsely told investors he would place their money in low-risk products such as municipal bonds and certificates of deposit, or use it to fund mortgages for medical professionals that would generate long-term returns.
Instead, prosecutors said, Dispoto used investor funds to pay off other victims in a Ponzi-like fashion and diverted substantial amounts for gambling and personal use. He also mailed fake financial statements showing fabricated gains to reassure clients their money was growing.
“The scheme collectively resulted in more than approximately $6,990,635.62 million in losses to victims,” the U.S. Attorney’s Office stated.
False promises, phony statements, and Ponzi payments
Dispoto used deceptive tactics to maintain the appearance of legitimacy, including the use of fraudulent documents to show steady increases in investment value. Authorities said the fraud involved approximately 47 victims and spanned multiple entities he controlled.
The wire fraud charge carries a maximum prison term of 20 years and a fine of up to $250,000, or twice the gross gain or loss, whichever is greater.
U.S. Attorney Habba credited the FBI, led by Acting Special Agent in Charge Terence G. Reilly, for investigating the case. Assistant U.S. Attorney Jennifer Kozar of the Economic Crimes Unit is handling the prosecution.
Key Points
- Vincent Dispoto Jr., 67, pleaded guilty to defrauding 47 investors out of nearly $7 million over more than 30 years.
- Dispoto used victim funds to make Ponzi-style payments and finance personal expenses, including gambling.
- He faces up to 20 years in prison and will be sentenced on August 26, 2025.