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A founder of a hedge fund on Wednesday pleaded guilty to a criminal charge alleging that he defrauded Neiman Marcus creditors by pressuring an investment bank not to bid against his hedge fund to buy securities from them.
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Marble Ridge Capital founder Daniel Kamensky, 48, has filed a lawsuit in a single case of bankruptcy fraud in federal court in Manhattan. In a plea agreement, a sentence of up to 18 months imprisonment was proposed. Sentencing was set for May 7 for Roslyn, New York.
U.S. Attorney Audrey Strauss said Kamensky was abusing his position as a committee member in the Neiman Marcus bankruptcy to spoil the asset distribution process and take extra profits for him and his hedge fund.
According to authorities, he forced a competitor to withdraw a bid for bankruptcy assets that was higher than what his hedge fund would offer.
NEIMAN MARCUS LILERS FOR BANK PROTECTION
Kamensky’s hedge fund has managed assets of more than $ 1 billion because it has invested in securities in emergencies, including bankruptcies.
Before Kamensky opened his hedge fund, he worked as a bankruptcy lawyer at a well-known international law firm and as a debt investor at leading financial institutions, prosecutors said.
HEDGE FUND FOUNDER INCLUDED IN NEIMAN MARCUS-CONNECTED CASE
Neiman Marcus, a U.S. luxury department store chain with nationwide stores, applied for protection against Chapter 11 in the U.S. Bankruptcy Court in Texas last May.
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Prosecutors said Kamensky carried out his fraud during the summer.
Joon H. Kim, Kamensky’s attorney, said his client admitted he was wrong and regretted his behavior on July 31, 2020 and the great pain it caused his family, colleagues and others. ”