A Monmouth County man was charged Friday with allegedly defrauding at least 30 victims of more than $5 million in a decades-long scheme.
Vincent Dispoto Jr., 66, of Belmar, was charged with one count of wire fraud, U.S. Attorney Philip R. Sellinger said Friday.
Dispoto owned and operated an alleged investment firm and a mortgage company, officials said.
He was scheduled to have his initial appearance in federal court Friday afternoon before U.S. Magistrate Judge André M. Espinosa in Newark, officials said.
His attorney did not immediately return a message seeking a comment.
Dispoto owned and operated Giddeon Financial Services, a purported investment services firm, and Liberty Mortgage Services, an alleged mortgage company, officials said.
Starting in 1988, Dispoto raised money through the firms and told victims, many of whom were elderly, that he would invest their money “in low-risk investment products with guaranteed rates of returns,” including municipal bonds and certificates of deposits, prosecutors allege.
He told some victims he was using their investments to fund loans and mortgages for medical professionals, which would generate long-term returns through interest payments, authorities said.
Dispoto mailed victims false financial statements that showed significant increases in their investments, authorities said. But, he allegedly did not invest victims’ money as promised.
He instead made “Ponzi-like payments to other victims, which he falsely claimed to be ‘returns’ on investments,” officials said. He also misappropriated victims’ money to fund his gambling and other personal expenses.
He defrauded victims out of more than $5 million, authorities said.
The wire fraud charge carries 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 greater.
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Brianna Kudisch may be reached at bkudisch@njadvancemedia.com.
