Monmouth County, NJ, man charged in multi-million-dollar Ponzi scheme, Feds say

A man from Monmouth County who owned and operated a purported investment firm has been arrested and charged with engaging in a decades-long scheme to defraud at least 30 victims of more than $5 million.

Alleged Monmouth County, NJ, Ponzi Scheme

Federal authorities say 66-year-old Vincent Dispoto, Jr., of Belmar, is facing one count of wire fraud.

According to officials, Dispoto owned and operated Giddeon Financial Services, a purported investment services firm, and Liberty Mortgage Services, an alleged mortgage company.

The Justice Department said the scheme began back in 1998 when "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."

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Dispoto also allegedly told some victims that he was using their money to fund loans and mortgages for medical professionals, which would generate long-term returns through interest payments.

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

In reality, prosecutors say Dispoto was executing a Ponzi-like scheme where he gave money from one victim to another to falsely show fake returns on investments. He also allegedly used some of the money to fund his his gambling and other personal expenses.

$5 Million

Dispoto’s scheme collectively resulted in more than $5 million in losses to victims, officials said.

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The wire fraud charge could send Dispoto to prison for up to 20 years with massive financial penalties.

The public is reminded that charges are accusations and all persons are considered innocent until proven guilty in a court of law.