NJ Man Gets 12 Years in $6M Ponzi Scheme

• A New Jersey man has been sentenced in federal court
• Prosecutors say the scheme defrauded dozens of people
• Millions of dollars were lost in the fraud

Monmouth County Man Sentenced in $6M Ponzi Scheme

A man from Monmouth County is headed to prison for over a decade after defrauding dozens of senior citizens out of millions of dollars in a Ponzi scheme.

Last week, 68-year-old Vincent Dispoto, Jr., formerly of Belmar, Monmouth County, was sentenced to 151 months, or just over 12 years, behind bars after pleading guilty to one count of wire fraud.

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How the Scheme Worked

Federal authorities said Dispoto owned and operated Giddeon Financial Services, a purported investment services firm.

Sometime around 1998, Dispoto raised money through Giddeon 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.

Officials also said Dispoto additionally 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.

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

However, in reality, Dispoto did not invest the victims' money — instead, he used it to make Ponzi-like payments to other victims, which he falsely claimed to be "returns" on investments.

Authorities said he also used some of that money on gambling and other personal expenses.

The Damage Done

In total, Dispoto's scheme collectively resulted in approximately $6 million in losses to victims, which he was ordered to repay as restitution.