A Middletown-based ex-securities firm chairman risks up to 20 years in prison for conning millions of dollars from scores of investors, dipping deeply into the funds, and leaving the Internal Revenue Service in the dark.


Peter Zuck, 66, co-founder and former chairman of Jersey City-based Osiris Partners LLC and Osiris Partners Fund Limited, pleaded guilty to one count of conspiracy to commit wire fraud, and four counts of tax evasion, according to the office of Acting New Jersey U.S. Attorney William E. Fitzpatrick. Sentencing is scheduled for July 17.

The wire fraud charge carries a possible 20-year prison term. Each tax-evasion count is punishable by up to five years in prison. Each charge also has a provision for a fine up to $250,000, or twice the gross gain or loss, whichever is greater. A codefendant, Michael Spak of Chesterfield, already pleaded guilty to wire fraud conspiracy.

Zuck assumed roles as managing member of the firm and portfolio manager of the fund in 2009. Authorities alleged that between June 2009 and November 2011, the limited partnership collected $12,000,000 from 76 investors, shielding them from information about investment losses, diverting funds for their own use, and taking management fees based on exaggerated net asset value.

In his guilty plea, Zuck admitted that the members misappropriated $4,000,000 and drew $3,900,000 in management fees under false pretenses.

Authorities said that Zuck admitted receiving payments of $1,300,000 for his employment with the entities, having the checks deposted in account bearing his son's name, paying personal bills with it, ascribing the amount to his son in IRS filings, and evading payment of $273,417 in federal income taxes.

In 2014, the Asbury Park Press reported that Zuck and several others affiliated with Osiris agreed to pay $55,000,000 to the State of New Jersey in a settlement regarding the sale of unregistere securities. The article, and another in Patch.com, reported previous convictions for securities fraud and theft.

Assistant U.S. Attorneys Elaine K. Lou, David M.Eskew and Shirley Emehelu led the government's case. Zuck's attorney is Red Bank-based Tim Anderson.

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