Osiris CEO Pleads Guilty To Conspiracy

Sep 27 2012 | 12:18pm ET

A New Jersey hedge fund manager has admitted to running a $4 million fraud.

Michael Spak pleaded guilty to conspiracy to commit wire fraud yesterday in Camden, N.J., federal court. According to prosecutors and a lawsuit filed by New Jersey's attorney general, Spak and his co-conspirators at Osiris Partners ripped off about 76 investors, lying to them about their performance while spending money on unusual investments, such as a $300,000 sport fishing boat. Osiris also allegedly inflated the amount of assets it managed to charge more in management fees.

Prosecutors said that Spak, who served as the hedge fund's CEO, and Osiris marketed their wares to "little guys" and "mom and pops."

Spak faces up to 20 years in prison when he is sentenced in January.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note