$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.”

In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of