Peter Zuck, Multimillion-Dollar Investment Fraud Scheme, New Jersey 2017

Camden, NJ – A Monmouth County, New Jersey, man has been caught in a multimillion-dollar investment fraud scheme that left 76 victims financially distressed.

Peter Zuck, 66, of Middletown, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to one count of conspiracy to commit wire fraud and four counts of tax evasion.

Zuck was a co-founder of Osiris Partners LLC and Osiris Partners Fund Limited. Starting in 2009, Zuck was employed in a management role with Osiris Partners LLC and Osiris Partners Fund Limited, including as a managing member and portfolio manager of the fund.

Between June 2009 and November 2011, Osiris Fund Limited Partnership solicited 76 investors to invest $12 million in the Fund. Zuck, Michael Spak, who previously pleaded guilty to one count of conspiracy to commit wire fraud for his role in the scheme, and other conspirators defrauded investors by concealing investments losses in the fund, misappropriating assets from the fund for their own personal use, and obtaining management fees based on a fraudulently inflated net asset value.

Zuck admitted that members of the Osiris Fund Limited Partnership diverted $4 million in investors’ funds from the fund and fraudulently drew $3.9 million in management fees to which they were not entitled.

Additionally, Zuck concealed his income by causing $1.3 million in checks to be deposited in an account that he controlled but that was in his son’s name and falsely assigning the income to his son on IRS forms.

Zuck faces a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater, for the charge of wire fraud conspiracy. Each charge of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater.

Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.

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