The New York Hedge Fund Founder Asserted his Wrongdoing to Neiman Marcus Fraud

According to the U.S. Department of Justice, a New York hedge fund founder pleaded to the charges against him on ....

According to the U.S. Department of Justice, a New York hedge fund founder pleaded to the charges against him on Wednesday. Daniel Kamensky, age 48, a citizen of Roslyn, New York committed his guilt in court for pressuring a rival to not bid for assets belonging to Neiman Marcus creditors. He did so to ensure he could buy these assets at a lower price.

Kamensky entered his plea before the U.S. District Judge Denise Cote in Manhattan. He had enjoyed the responsibility of being a principal at Marble Ridge Capital LP. In that organization, he was a specialist in “distressed” investing that at one time in the past has $1.2 billion of assets under management.

According to a spokesman for Kamensky, the defendant could face 12 to 8 months in prison for this crime, as per the federal guidelines on May 7. While Kamensky’s lawyers were not available for any comment on this, the prosecutors claimed how he had threatened to violate his role as co-chair of Neiman. The warning was to block an investment banking from bidding 30 cents per share for securities he wished to buy for 20 cents per share. Also, Kamensky had threatened to stop doing business with the bank unless he was backed off. He is also involved in blackmailing an employee to speak lie about what had transpired.

The prosecutors described how Kamensky was asking the employee to understand the degree of situation wherein he will have to go to jail if the other one did not lie and how the complete matter is going to the U.S. Attorney’s office. To which the U.S. Attorney Audrey Strauss harmonized by saying, “His fraud has indeed come to the U.S. Attorney’s office and now has been revealed in open court.”

Neiman filed for Chapter eleven protection in May 2020. It is an organization based in Dallas, Texas, founded in the year 1907. Four months after this incident, Neiman reported with new owners including investment companies such as Pimco, Davidson Kempner Capital Management, and Sixth Street Partners LLC.

The settlement, in this case, was approved by a federal judge considering the fact that Neiman claimed against Kamensky, who had been a partner for the hedge fund firm named Paulson & Co. This was before he founded Marble Ridge in 2015. After Kamensky’s conduct came under scrutiny, Marble Ridge announced to liquidate in August 2020.

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