A New Jersey man has admitted he defrauded 47 investors out of more than $6.9 million over three decades in a “Ponzi-like” investment scheme.
Vincent Dispoto Jr., 67, formerly of Belmar, N.J., pleaded guilty to one count of wire fraud before U.S. District Judge Zahid N. Quraishi, according to a news release from the U.S. Attorney’s Office for the District of New Jersey.
Starting in 1988, Dispoto, raised money through two firms he owned and operated, Giddeon Financial Services and Liberty Mortgage Services, by duping elderly individuals and others to invest in what he said were low-risk investment products with guaranteed rates of return, including municipal bonds and certificates of deposits, authorities said.
Dispoto told some victims their investments were funding loans and mortgages for medical professionals, generating long-term returns through interest payments. Dispoto sent victims fraudulent financial statements falsely showing large increases in the investment value, according to the release.
Dispoto did not invest victims’ money as he claimed but was operating a “Ponzi-like” scheme, using new investments to pay other victims, which he claimed to be “returns” on investments, according to authorities. He also used the money for gambling and other personal expenses.
Dispoto’s victims lost $6,990,635.62 million in total, authorities said.
Dispoto could be sentenced to 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. He is scheduled to be sentenced Aug. 26.
Dispoto was charged following an investigation by the FBI, and prosecution was led by . Assistant U.S. Attorney Jennifer Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark. Dispoto was represented by federal public defenders.
