Belmar Man Admits To $6.9M Ponzi Investment Scheme

BELMAR, NJ — A Belmar man admitted to a decades-long scheme to defraud approximately 47 victim investors out of more than $6.9 million, U.S. Attorney Alina Habba announced Thursday.

Vincent Dispoto Jr., 67, formerly of Belmar, pleaded guilty to one count of wire fraud.

According to documents filed in the case and statements made in court, Dispoto owned and operated Giddeon Financial Services, a purported investment services firm, and Liberty Mortgage Services, an alleged mortgage company.

Beginning in or around 1988, Dispoto raised money through these and other entities by falsely claiming to victims — many of whom were elderly — that he would invest their money in low-risk investment products with guaranteed rates of return, including municipal bonds and certificates of deposits. Dispoto also told some victims that he was using their investments to fund loans and mortgages for medical professionals, which would generate long-term returns through interest payments.

To perpetuate his fraud, Dispoto mailed victims false and fraudulent financial statements that purported to show significant increases in the value of their investments.

In reality, Dispoto did not invest the victims’ money as promised. Instead, he used it to make Ponzi-like payments to other victims, which he falsely claimed to be “returns” on investments. He also misappropriated victim money to fund his gambling and other personal expenses.

Dispoto’s scheme collectively resulted in more than approximately $6,990,635.62 million in losses to victims.

He is facing up to 20 years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest. Sentencing is scheduled for August 26.