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A hedge fund founder pleaded guilty on Wednesday to a criminal charge alleging defrauding Neiman Marcus’ creditors by pressuring an investment bank not to subject his hedge fund to buy securities from them.
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Marble Ridge Capital founder Daniel Kamensky, 48, has pleaded a single count of bankruptcy fraud in federal court in Manhattan. A plea deal suggested a sentence of up to 18 months in prison. Sentencing was set for May 7 for the Roslyn, New York resident.
Manhattan US attorney Audrey Strauss said Kamensky abused his position as a committee member in the Neiman Marcus bankruptcy to corrupt the asset distribution process and take additional profits for himself and his fund speculative.
Authorities say he forced a competitor to pull out a larger supply of bankruptcy assets than his hedge fund would offer.
NEIMAN MARCUS FILES FOR BANKRUPTCY PROTECTION
Kamensky’s hedge fund has managed over $ 1 billion in assets by investing in distressed securities, including bankruptcies.
Prior to opening his hedge fund, Kamensky worked as a bankruptcy lawyer at a well-known international law firm and as a troubled investor in leading financial institutions, prosecutors said.
THE FOUNDER OF HEDGE FUND ARRESTED IN A MATTER RELATED TO NEIMAN MARCUS
Neiman Marcus, a chain of luxury department stores in the United States with outlets across the country, filed for Chapter 11 protection with the U.S. bankruptcy court in Texas last May.
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Prosecutors said Kamensky committed his fraud over the summer.
Joon H. Kim, Kamensky’s lawyer, said his client admitted that what he had done was wrong and “deeply regretted his conduct on July 31, 2020 and the great pain it caused to his family, his colleagues and others. “
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