The Monmouth County-based founder of an investment firm is sentenced to three years in prison, for his role in defrauding 76 clients for more than $4,000,000, and cheating the government out of more than $273,000 in taxes.

Prison cell block

The sentence meted in Camden to Peter Zuck, 67, of Middletown, includes three years of supervised release, and corresponds with his guilty plea to a federal 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. A resititution amount has yet to be finalized.

Zuck and associate Michael Spak admitted hiding investment losses, skimming money for personal use, and overcharging management fees by inflating net asset values of investments.

Zuck co-founded Osiris Partners LLC and Osiris Partners Fund LImited, and was a managing member and portfolio manager beginning in 2009.

Investigators said that between 2009 and 2011, Osiris Fund LImiting Partnership enrolled 76 investors, who contributed $12,000,000. Zuck admitted that he and others in the firm diverted $4,000,000, and illicitly drew $3,900,000 in management fees.

According to authorities, Zuck also hid $1,300,000 in wages from the Internal Revenue Service, depositing the checks in an account bearing his son's identity, and assigning the income to his son's IRS forms.

Assistant U.S. Attorneys Elaine K. Lou, David M. Eskew, and Shirley Emehelu conducted the government's case. Zuck was represented by Red Bank attorney Tim Anderson.

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