A New Jersey man was sentenced to prison for defrauding over 60 investors out of more than $6 million through a scheme spanning several decades, according to Financial Advisor.
The U.S. Attorney’s Office announced that 68-year-old Vincent Dispoto Jr., formerly of Belmar, was sentenced to 151 months in prison by U.S. District Judge Zahid N. Quraishi. He previously pleaded guilty to one count of wire fraud.
According to documents filed in the case and statements in court, Dispoto owned and operated Giddeon Financial Services, a purported investment services firm.
Beginning around 1988, prosecutors said he raised money through Giddeon Financial Services 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 deposit.
“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,” the U.S. Attorney’s Office said. “To perpetuate his fraud, Dispoto mailed victims false and fraudulent financial statements that purported to show significant increases in the value of their investments.”
Dispoto did not invest the victims’ money as promised but instead used it to make Ponzi-like payments to other victims, which he falsely claimed to be “returns” on investments. He also misappropriated some of the money to fund his gambling and other personal expenses. Investors lost a total of over $6 million in the scheme, authorities said.
Along with the prison term, Judge Quraishi sentenced Dispoto to three years of supervised release and ordered restitution of $6,083,419.84 to the victims. The judge separately entered a forfeiture money judgment of $6,990,635.62.
The attorneys at Hyman Cotter PC have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter PC at 312-291-4600 or through our online contact form for a no-cost evaluation of your matter.
