Peter Zuck who resides in Middletown resident and is a former chairman of a now-defunct hedge fund has confessed about the wire fraud that he committed.
He said that he tried to scam for more than 250,000-dollar tax.
He also admitted of his participation in a conspiracy where he tried to fraud around 80 investors for $4 million.
The statement was approved by the U.S. attorney from New Jersey named William E. Fitzpatrick.
Peter already was convicted of financial crimes before and this time he pleaded guilty in the Camden federal court.
This incident happened on Tuesday, 11th April. The court has filed the charge in front of U.S. District Judge, Joseph H. Rodriguez for wire fraud and four counts of tax evasion.
His frauds started in 2009 when Peter Zuck was placed as managing member as well as portfolio manager of Osiris Partners Fund Limited which is also known as Osiris Partners LLC.
It was between 2009 and 2011 that Peter Zuck and his other acquaintances from Osiris lured around 76 investors to launder $12 million which was accepted in the hedge fund.
Peter said that he with other members hid the investment losses and used the money from the fund for their personal usage.
He fraudulently inflated the net asset value to receive the management fees and was successful in fooling $4 million from the investors. Later he drew $3.9 million for management fees which was again illegal.
It took three years to get to this scam and convict Peter Zuck and his associates who were a part of this fraud.
The state has finalized a penalty of $55 million settlement for selling unregistered securities and accomplishing these illegal business practices.
In August 2012, Peter Zuch together with his co-defendant Joseph C. Spak, Michael Spak of Milltown and John R. Najarian with other members were questioned for not disclosing Peter’s conviction history which comprised of theft and wire fraud.
This original complaint was filed in New Jersey Superior Court in Jersey City.
His journey as a con artist and a scammer started long back. In 1994, Peter had to give up his securities license because of the conviction and had to spend five years in prison.
After his release from the prison, he was again found guilty in 1997. This time he was made to stay in probation for 18 months. Again in 2002, in spite of pleading guilty to theft, he was made to serve five years of probation.
Peter Zuck did not disclose to the Internal Revenue Service his salary of $1.3 million salary at Osiris. Pater wanted to save the tax money and in the same attempt he obscured his income.
He tried to show the income under his son’s name. He tried to avoid the legitimate tax amount and wanted to pay only $273,417 in taxes.
As per the Fitzpatrick statement, the wire fraud conspiracy results for a maximum prison term of 20 years. The four tax evasion convictions have a five-year prison term.
The maximum fine that is levied for all these charges is either $250,000 or the amount after calculating twice the gross loss or gain related with the offense, whichever is greater.
Peter Zuck will be sentenced on July 17.
Tim Anderson, Zuck’s Red Bank-based attorney, was not immediately available for comment Tuesday.