N.J. AG suing investment firm

by Bryan Cohen |
Aug. 8, 2012, 1:26pm


NEWARK, N.J. (Legal Newsline) - New Jersey Attorney General Jeffrey Chiesa and the New Jersey Bureau of Securities announced a lawsuit on Wednesday against a Jersey City-based investment firm and its executives for alleged securities fraud.

Osiris Fund Limited Partnership, Osiris Partners LLC and 10 individuals who worked for the firms or sold Osiris Fund securities allegedly defrauded investors and raised approximately $12 million by selling unregistered securities.

The individuals named in the lawsuit include Peter Zuck, the chairman of Osiris Partners; Michael J. Spak, the company's CEO; Joseph C. Spark, its controller; John R. Najarian, its COO; Brian J. Spak, a member of the company; Victoria Brialmont, its regional vice president; Jay John Soojian, a seller of Osiris Fund securities; John Schierer, the director of research and technical analysis at the company; Laurie Mazza, the wife of Peter Zuck; and Wayne G. Player, a seller of Osiris Fund securities.

"The defendants allegedly lied to investors and then created false records to maintain their deception," Chiesa said. "We allege these defendants enriched themselves by pocketing at least $4 million of investors' hard-earned money from the fund while they concealed substantial losses. We're asking the court to freeze the defendants' assets, with the goal of returning money to the defrauded investors."

Eight additional defendants, most of them relatives of the defendants, were named as relief defendants in the lawsuit for allegedly benefitting from the fraud by receiving cash and other items.

The relief defendants include Peter L. Zuck, Bryan J. Zuck, Jessica Najarian, Loretta Spak, ANS Enterprises LLC, IGF Consulting LLC, Wayne Player Productions LLC and Dexter Group LLC.

The lawsuit alleges that the defendants engaged in multiple violations of the New Jersey Uniform Securities Law. The allegations include employing unregistered agents to sell limited partner interests in the Osiris Fund, overstating Osiris Fund's net asset value to produce higher management fees and conceal losses, and creating false investor account statements.

Approximately 76 investors who purchased Osiris Fund securities from mid-2009 to the end of 2011 were allegedly defrauded. The investors allegedly sustained significant losses as a result of the actions taken by the defendants.

Peter Zuck was previously convicted of securities fraud and misconduct by a corporate officer, illegally retaining funds and theft by failing to make a disposition of funds.

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