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For Immediate Release:
For Further Information:
August 8, 2012 

Office of The Attorney General
- Jeffrey S. Chiesa, Attorney General
Division of Consumer Affairs
Eric T. Kanefsky, Acting Director

Bureau of Securities
- Abbe R. Tiger, Chief

Media Inquiries-
Jeff Lamm or
Neal Buccino
973-504-6327

Citizen Inquiries-

609-984-5828
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Attorney General Chiesa, N.J. Division of Consumer Affairs, and N.J. Bureau of Securities Announce Suit Against Investment Firm for Alleged $12 Million Fraud
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NEWARK – Attorney General Jeffrey S. Chiesa and the New Jersey Bureau of Securities have sued a Jersey City-based investment firm and its executives, charging that they defrauded investors and raised approximately $12 million through the sale of unregistered securities.

Osiris Fund Limited Partnership, Osiris Partners, LLC, and 10 individuals who either worked for the firms or sold the Osiris Fund’s unregistered securities, are named as defendants in the State’s nine-count Complaint filed in State Superior Court in Jersey City.  An additional eight defendants, many of them relatives of the defendants, are named as relief defendants who allegedly benefitted from the fraud through their receipt of cash and other items.

In its Complaint, the State alleges that the defendants committed multiple violations of the New Jersey Uniform Securities Law.  The alleged violations committed by the defendants include creating false investor account statements, overstating Osiris Fund’s net asset value to produce higher management fees and conceal losses, and employing unregistered agents to sell limited partnership interests in the Osiris Fund. Approximately 76 investors who bought into the Osiris Fund between mid-2009 and the end of 2011 were allegedly defrauded.

“The defendants allegedly lied to investors and then created false records to maintain their deception.  We allege these defendants enriched themselves by pocketing at least $4 million of investors’ hard-earned money from the fund while they concealed substantial losses,” Attorney General Chiesa said.  “We’re asking the Court to freeze the defendants’ assets, with the goal of returning money to the defrauded investors.”

The State contends that investors sustained substantial losses through the alleged actions taken by the defendants.

The defendants and their alleged relationship with Osiris Partners is as follows:

  • Peter Zuck, 62, of Middletown, N.J., Chairman
  • Michael J. Spak, 43, of Chesterfield, N.J., CEO
  • Joseph C. Spak, 69, of Milltown, N.J., Controller
  • John R. Najarian, 34, of Hillsdale, N.J., Chief Operating Officer
  • Brian J. Spak, 36, of Hamilton Square, N.J., a member of Osiris Partners
  • Victoria Brialmont, 62, of Palm Beach Gardens, Fla., Regional Vice President
  • Jay John Soojian, 55, of Wayne, N.J., offered and sold Osiris Fund securities
  • John Schierer, 46, of Hamilton Square, N.J., Dir. Of Research/Technical Analysis
  • Laurie Mazza, 52, of Middletown, N.J., wife of Peter Zuck
  • Wayne G. Player, 50, of Tequesta, Fla., offered and sold Osiris Fund securities

According to the investigation, Zuck is a three-time convicted criminal who was previously convicted of securities fraud and misconduct by a corporate officer, theft by failing to make a disposition of funds, and illegally retaining funds.

“This case clearly illustrates why we urge consumers to perform their due diligence before investing their money,” said Eric T. Kanefsky, Acting Director of the State Division of Consumer Affairs.  “Unregistered people selling unregistered securities are serious red flags, as is any past criminal history in the securities industry.”

The relief defendants who allegedly benefitted from the ill-gotten gains generated by defrauding investors are as follows:

  • Peter L. Zuck, 21, of Middletown, N.J., son of Peter Zuck, possessing 47% interest in Osiris Partners with 42% of monthly management fees attributed to him
  • Bryan J. Zuck, 29, of Jersey City, N.J., son of Peter Zuck and member of Osiris Partners
  • Jessica Najarian, 29, of Hillsdale, N.J., wife of John R. Najarian
  • Loretta Spak, 44, of Chesterfield, N.J., wife of Michael J. Spak and overseer of checking and saving accounts at Osiris

In its Complaint, the State contends that Loretta Spak is the sole member of ANS Enterprises, LLC, of Milltown, N.J., and that defendant Jessica Najarian is the sole member of IGF Consulting, LLC, of Northvale, N.J.  Both companies, along with Wayne Player Productions, LLC, of Tequesta, Fla. and Dexter Group, LLC, of Wayne, N.J., are named as corporate relief defendants.

“Investors who believe they are victims in a fraudulent scheme should file a complaint with us.  The Bureau has investigators who will check into filed complaints and take swift action when there’s fraud,” said Abbe R. Tiger, Chief of the N.J. Bureau of Securities.

Rudolph Bassman, Chief of Enforcement, and Investigators Richard E. Stewart and Peter C. Cole of the Bureau of Securities conducted the investigation.  Deputy Attorney General Samuel Scott Cornish, Chief of the Securities Fraud Prosecution Section, and Emanuel S. Asmar, Deputy Attorney General, are representing the State in this action.

The Bureau of Securities can be contacted toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at 973-504-3600.  The Bureau's website is located at www.njsecurities.gov .

Follow the Division of Consumer Affairs on Facebook, and check our online calendar of upcoming Consumer Outreach events.

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