Hedge fund founder arrested for filing for bankruptcy of Neiman Marcus.

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Marble Ridge’s Kamensky was charged with securities fraud, wire fraud, extortion and obstruction of justice.
Daniel Kamensky put pressure on the rival bidder not to bid for the assets related to the bankruptcy of Neiman Marcus.
Marble Ridge announced the liquidation on August 20, after Kamensky’s behavior began to be monitored.

On September 3, Daniel Kamensky, the director of Marble Ridge Capital, was indicted by the U.S. Department of Justice on charges of securities fraud, wire fraud, extortion and obstruction of justice. You can find the official link here.

Daniel Kamensky, 47, is alleged to have pressured the competing bidder (investment bank) not to bid for the assets related to the bankruptcy of Neiman Marcus. This allowed him to acquire the assets for himself at a lower price. Kamensky then tried to convince the competing bidder to cover up the plan.

Details on the bankruptcy of Neiman Marcus

An American chain of luxury department stores, Neiman Marcus, filed a Chapter 11 application in May 2020. At the beginning of the bankruptcy, Daniel Kamensky filed the application and became a member of the Official Committee of Unsecured Creditors. As a member of the committee, KAMENSKY had the fiduciary duty to represent the interests of all unsecured creditors as a group.

During the bankruptcy proceedings, the committee negotiated with the owners and successfully concluded a settlement to obtain 140 million shares of MYT Securities to benefit certain unsecured creditors of the bankruptcy estate.

In July 2020, Daniel Kamensky began negotiations with the Official Committee of Unsecured Creditors of Marble Ridge to offer 20 cents per share to purchase MYT Securities from all unsecured creditors who preferred to receive cash rather than MYT Securities under the settlement.

On July 31, Kamensky learned of a New York-based investment bank interested in offering a price between 30 and 40 cents per share to buy MYT shares from any unsecured creditors who preferred to receive cash.

The investment bank subsequently decided not to make an offer to purchase MYT securities and informed the Committee’s legal counsel of its decision.

Details about Marble Ridge

Marble Ridge was founded in 2015 and is an investment advisor registered with the SEC. Daniel began his career as a bankruptcy lawyer and has over 21 years of industry experience investing in complex, multi-jurisdictional, distressed and event-driven situations. Marble Ridge Capital had $1.2 billion in assets at December 31, 2019. The hedge fund announced its liquidation on August 20 after Daniel Kamensky’s behavior began to be monitored.

Daniel Kamensky presented himself to the federal court in Manhattan, where his bail was set at $250,000.

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