NJ.com – They told would-be investors it was a hedge fund for the “little guys” and the “moms and pops.” But in reality, authorities said, the Jersey City investment firm Osiris Fund L.P. was little more than an elaborate fraud run by a three-time convict who had been booted from the securities industry two decades ago.
The state attorney general’s office yesterday announced it has sued Peter Zuck, his collapsed hedge fund and nine other people tied to the alleged multiyear fraud that bilked some 76 investors out of millions of dollars.
While much of the $12 million that was entrusted to Osiris was sapped by undisclosed trading losses, allegedly illegal loans and inflated management fees, the state is seeking an asset freeze in hopes of returning money to harmed investors, Attorney General Jeffrey Chiesa said in a statement yesterday.
