CAMDEN, N.J. (AP) — A New Jersey man who ran a hedge fund for "moms and pops" has admitted to conspiring to defraud investors of $4 million.
Forty-four-year-old Michael Spak of Chesterfield pleaded guilty Wednesday in U.S. District Court in Camden to conspiracy charges. He could face up to 20 years in prison when he's sentenced Jan. 9.
Authorities say Spak and others at Jersey City-based Osiris Partners LLC got more than 75 people to invest a total of $12 million.
They say the partners' diversions included spending $300,000 of investors' money on a fishing boat called the "Fintastic."
The U.S. Attorney's Office also says the group hid a $4.5 million loss from investors, instead saying the fund had $5 million more than it did — and charged a management fee on it.