NJ man accused of $5M Ponzi scheme that cheated 30 investors

⚫ NJ man accused of $5M Ponzi scheme

⚫ Prosecutors say at least 30 victims scammed

⚫ Belmar man’s ex-best friend among investors

A 66-year-old Belmar man has been accused of cheating at least 30 investors out of more than five million dollars in a decades-long Ponzi scheme.

Vincent Dispoto was arrested and charged with one count of wire fraud. He was expected to appear Friday afternoon in Newark federal court.

Dispoto owned and operated Giddeon Financial Services, a purported investment services firm, and Liberty Mortgage Services, an alleged mortgage company, according to U.S. Attorney Philip Sellinger.

Among victims was Dispoto’s longtime best friend, according to federal court papers filed in the case, while many of his other victims were elderly.

Dispoto promised to invest their money in low-risk investment products with “guaranteed rates of return,” prosecutors said.

He even sent victims phony financial statements that showed fake significant increases in the value of their investments.

SEE ALSO: NJ towns with decreasing median household income 

When asked to provide actual funds, Dispoto lied and gave such fake excuses as:

⚫ An alleged ransomware attack that left Giddeon Financial incapable of disbursing funds

⚫ Bankruptcy of a mortgage loan originator holding more than $10 million in Liberty Mortgage notes

The stories were made up, federal prosecutors said, as Dispoto had not invested victims’ money as promised.

Instead, he spent it to make “Ponzi-like payments to other victims,” as well as on gambling debts and other personal expenses.

If convicted of wire fraud, Dispoto could face a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.

Report a correction 👈 | 👉 Contact our newsroom