Friday, 26 August 2016
Last updated 10 hours ago
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.