Reporting David Madden
By David Madden
CAMDEN, N.J. (CBS) - The former CEO of a New Jersey based hedge fund pleaded guilty in Camden federal court yesterday to charges he helped defraud investors out of more than $4-million.
Michael Spak, 44, of Chesterfield, NJ (Burlington County) faces up to 20 years in prison and a quarter million dollar fine, after admitting to a single count of conspiracy to commit wire fraud.
More than 6 dozen people invested some $12-million into the Osiris Fund, marketed as a fund for “little guys” and “moms and pops”. But federal prosecutors say Spak and others started skimming money out of the fund a couple years ago, including $300,000 for a luxury sport fishing boat.
All told, investigators say they took more than $4-million dollars. They also covered up a $4.5-million, yet listed it as assets and collected management fees on that money.
Spak will be sentenced in January. An investigation into the case continues.