The Founder of Marble Ridge Charged Over Neiman Marcus Bankruptcy

Criminally charged for pressuring a rival on not to bid for assets related to Neiman Marcus’ bankruptcy, the founder of ....

Criminally charged for pressuring a rival on not to bid for assets related to Neiman Marcus’ bankruptcy, the founder of New York hedge fund, Daniel Kamensky is undergoing the trial in front of the U.S. Department of Justice.

 

Kamensky, on Thursday, was charged with securities fraud, wire fraud, extortion, and bribery. Kamensky’s firm Marble Ridge Capital LP specialized in distressed investing and is liquidating its assets. 

 

Appearing in front of the Manhattan federal court on Thursday, Kamensky’s lawyers were not apt to respond to requests for comment on the case. The bail set by the U.S. Department of Justice for this case is $250,000.

 

If prosecutors of the case are to be believed, Kamensky began the scheme on July 31st when he learned that an investment bank bid around 30 cents per share for securities is tied to Neiman’s bankruptcy. He had hoped to pay above the 20 cents.

 

A resident of Roslyn, New York, Kamensky is said to have threatened for blocking higher bid and stop doing business with the bank unless it’s backed off. Kamensky used his role as co-chair of the retailer’s official committee of unsecured creditors.

 

Further taking-putting the blames on Kamensky, the prosecutors say that he has asked an employee who was a part of the recorded call for telling the committee and law enforcement that he would suggest the bank bid only if it were serious.

 

The quotations were as follows:

 

Kamensky: Do you understand … I can go to jail

Employee: I honestly … don’t want anything to do with this

Kamensky: My position … is going to be… look, this was a huge misunderstanding. They’re going to say that I abused my position as a fiduciary, which I probably did, right?

 

The prosecutors brought to light Kamensky’s voluntary interview in which he calls his conversation with the employee a “terrible mistake” and “profound errors in lapses of judgment.”

 

Filing the related civil charges against the man is the U.S. Securities and Exchange Commission. Important to note is the announcement of liquidation after Kamensky’s conduct began falling under security that Marble Ridge, the company found by Kamensky in 2015 has $1.2 billion of assets as of December 31st.

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