Belmar Resident Charged In $5 Million Investment Scam

BELMAR, NJ — A Belmar man who claimed he owned his own investment company was arrested Friday and charged with engaging in a decades-long scheme to defraud at least 30 victims of more than $5 million, U.S. Attorney Philip Sellinger announced the same day he was arrested.

The man is Vincent Dispoto Jr., 66, of Belmar. He was charged with one count of wire fraud.

Dispoto owned and operated Giddeon Financial Services, a purported investment services firm, and Liberty Mortgage Services, an alleged mortgage company. Federal prosecutors says that beginning in 1988, Dispoto raised money through those two companies and other entities by falsely claiming to clients that he would invest their money in low-risk investment products with guaranteed rates of return, including municipal bonds and certificates of deposits.

Many of his clients were elderly.

Dispoto also told some clients 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 $5 million in losses to his clients.