$55 Million Levy For Osiris Hedge Fund Fraud

Jun 10 2014 | 11:57am ET

Four New Jersey hedge fund managers have been hit with a $55 million bill for ripping investors off to the tune of $4 million.
New Jersey Superior Court Judge Hector Velazquez fined Osiris Partners’ former CEO and controller, Michael Spak and Joseph Spak, $10 million each. Two Osiris entities were also fined that sum. In addition, Brian Spak was ordered to pay $7 million.
Former COO John Najarian, his wife Jessica and former Chairman Peter Zuck, whose disappearance in January 2012 sparked the fraud’s downfall, were each ordered to pay $160,000 in civil penalties. All six were also ordered to disgorge profits and pay restitution to investors.
“Investors lost millions in this scheme and our focus is on taking appropriate action against those responsible,” John Hoffman, New Jersey’s acting attorney general, said. “This includes barring the most culpable of these scammers from the securities industry to prevent them from preying upon investors in the future.”

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