NJ Investment Firm Owner Arrested for Multi-Decade Fraud Scheme

Allegations surface against Vincent Dispoto Jr. for defrauding investors of over $5 million in a long-running scheme.

As of March 7, 2024, Vincent Dispoto Jr., a 66-year-old resident of Belmar, New Jersey, has been arrested on charges of conducting a fraudulent investment operation that spanned over three decades. U.S. Attorney Philip R. Sellinger announced that Dispoto is facing one count of wire fraud after allegedly deceiving at least 30 victims, leading to losses exceeding $5 million.

Dispoto, the owner of Giddeon Financial Services and Liberty Mortgage Services, is accused of luring investors with promises of low-risk investments and guaranteed returns. These investments purportedly included municipal bonds and certificates of deposits, along with loans and mortgages for medical professionals. However, the promises made to investors, many of whom were elderly, were baseless. Dispoto allegedly issued fraudulent financial statements to his victims, falsely depicting significant investment growth.

The reality of Dispoto's operations was far from the secure financial ventures he advertised. Instead of legitimate investments, he is accused of redirecting the funds to sustain a Ponzi-like scheme, providing earlier investors with so-called "returns" that were, in fact, funds from new victims. Furthermore, he allegedly used the money for personal expenses, including gambling.

The charge against Dispoto carries a severe potential penalty, including up to 20 years in prison and a $250,000 fine—or double the gross gain or loss, whichever is higher.

The arrest was made possible through the efforts of the FBI, with special recognition given to Special Agent in Charge James E. Dennehy in Newark. Assistant U.S. Attorney Jennifer Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark represents the government in this case.

As the legal proceedings move forward, it's crucial to remember that the charges against Dispoto are merely accusations. He remains presumed innocent until proven guilty. This case serves as a stark reminder of the importance of vigilance and due diligence in investment matters, especially for vulnerable populations.