by The Compliance Exchange on August 9, 2012
State officials have sued a Jersey City-based hedge fund and its executives over charges that they defrauded dozens of investors and sold about $12 million worth of unregistered securities.
The charges were levied against Osiris Partners and an affiliated entity, Osiris Fund Limited Partnership, and 10 individuals who either worked for the firm or sold unregistered interests in the hedge fund, the state attorney general’s office said today in a statement. Among those charged were the firm’s chairman, Peter Zuck, 62, of Middletown, whom the state said also was a three-time convicted criminal.
About 76 investors who bought into the Osiris fund between mid-2009 and the end of 2011 were victims of the alleged fraud, state officials wrote. According to the complaint, the firm violated multiple provisions of the state’s securities law, including producing phony investor account statements, overstating the value of Osiris fund’s assets to generate higher management fees and conceal losses. The fund firm also employed unregistered agents to sell limited partnership interests in the Osiris fund and failed to disclose Zuck’s criminal background, which include convictions for securities fraud, officials wrote.
Read the full story at NJ.com.
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