November 11, 2024

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Hedge Fund Founder Accused of Neiman Fraud

The founder of distressed credit card debt hedge fund Marble Ridge Cash has been billed with defrauding lenders of Neiman Marcus by coercing a rival bidder to fall a bigger offer you for the flourishing e-commerce company of the bankrupt retailer.

Daniel Kamensky, 47, was arrested Thursday on felony fees alleging he abused his place on the Neiman unofficial creditors’ committee (UCC) immediately after he discovered in July that the Jeffries financial investment financial institution was ready to bid as a lot as two times as a lot for shares in the MyTheresa on the internet device as Marble Ridge.

The U.S. Department of Justice also billed Kamensky with extortion and obstruction of justice for allegedly trying to enlist Jeffries in a deal with-up of his misconduct. “Do you have an understanding of … I could go to jail?” he explained to an worker of the financial institution in the course of a mobile phone get in touch with that was taped by investigators.

In a linked civil action, the Securities and Trade Fee has accused Kamensky of violating an anti-fraud provision of the federal securities legislation.

“Kamensky deliberately violated his fiduciary responsibility as a member of the [creditors’ committee] by protecting against the sale of securities to an financial investment financial institution so he could receive the very same securities at a appreciably decrease cost for his possess fund,” FBI Assistant Director-in-Charge William F. Sweeney stated in a news release.

Neiman filed for Chapter 11 personal bankruptcy in Might, with Kamensky getting appointed co-chair of the UCC. On July 28, he outlined a proposal to the committee to order 60 million MyTheresa shares at twenty cents for every share from other lenders wishing to market their stock.

Three days later, nonetheless, Jeffries unveiled a bid at a cost among 30 cents and forty cents for every share.

In accordance to the govt, Kamensky pressured Jeffries into withdrawing by telling the financial institution he would use his place on the committee to make sure its bid was rejected and if it moved ahead with the offer you, Marble Ridge would stop accomplishing company with Jeffries.

“Within an hour of understanding of a competing bid for the MyTheresa shares, Kamensky experienced undermined and manipulated the presenting of those people securities,” the SEC alleged.

Noam Galai/Getty Photographs

lenders, Daniel Kamensky, Marble Ridge Cash, MyTheresa, Neiman Marcus, U.S. Securities and Trade Fee