The New Jersey Attorney General and the New Jersey Bureau of Securities have sued a Jersey City-based investment firm and its executives, charging them with defrauding investors and raising approximately $12 million through the sale of unregistered securities, the state Attorney General said Wednesday.  

Approximately 76 investors who bought into the Osiris Fund between mid-2009 and the end of 2011 were allegedly defrauded. The state also contends that investors sustained substantial losses through the alleged actions taken by the defendants.

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 benefited from the fraud by receiving cash and other items.

According to the complaint, Osiris Chairman Peter 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.

The state in its complaint alleges that the defendants committed multiple violations of New Jersey's Uniform Securities Law that 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.

"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 Jeffery S. Chiesa said in a statement. "We're asking the Court to freeze the defendants' assets, with the goal of returning money to the defrauded investors."

The defendants and their alleged relationship with Osiris Partners are 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., director 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

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

The state also 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.