An investment firm owner who admitted that he defrauded dozens of investors out of more than $6 million was sentenced Tuesday to 12 years and seven months in prison, authorities announced Thursday.
Vincent Dispoto Jr., 68, formerly of Belmar, pleaded guilty earlier this year to one count of wire fraud, according to a statement from the U.S. Attorney’s Office District of New Jersey.
Dispoto owned and operated Giddeon Financial Services, the office said.
Beginning in 1988, he raised money through the company 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.
The investments often involved municipal bonds and certificates of deposits, investigators said. Dispoto also told some victims that he was using their investments to fund loans and mortgages for medical professionals, which would generate long-term returns through interest payments.
He would mail them phony financial statements that supposedly showed significant increases in the value of their investments, federal prosecutors said.
In reality, Dispoto did not invest the victims’ money as promised and used it to make Ponzi-like payments to other victims, which he falsely claimed to be “returns” on investments, the office said.
He also used their money to fund his gambling and other personal expenses, and in the end, he bilked the victims out of over $6 million, authorities said.
In addition to the prison term, a federal judge ordered Dispoto to pay back $6,083,419.84 to the victims of his scheme, officials said.
Please consider supporting NJ.com with a voluntary subscription.
Chris Sheldon may be reached at csheldon@njadvancemedia.com.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.
