The founder of distressed personal debt hedge fund Marble Ridge Capital has been charged with defrauding lenders of Neiman Marcus by coercing a rival bidder to fall a bigger give for the flourishing e-commerce business of the bankrupt retailer.
Daniel Kamensky, 47, was arrested Thursday on prison rates alleging he abused his placement on the Neiman unofficial creditors’ committee (UCC) following he acquired in July that the Jeffries investment decision financial institution was ready to bid as a great deal as two times as a great deal for shares in the MyTheresa online unit as Marble Ridge.
The U.S. Department of Justice also charged Kamensky with extortion and obstruction of justice for allegedly trying to enlist Jeffries in a cover-up of his misconduct. “Do you understand … I could go to jail?” he explained to an personnel of the financial institution through a cellphone contact that was taped by investigators.
In a similar civil action, the Securities and Trade Commission has accused Kamensky of violating an anti-fraud provision of the federal securities legal guidelines.
“Kamensky deliberately violated his fiduciary obligation as a member of the [creditors’ committee] by avoiding the sale of securities to an investment decision financial institution so he could acquire the very same securities at a noticeably lower value for his have fund,” FBI Assistant Director-in-Demand William F. Sweeney explained in a news release.
Neiman submitted for Chapter 11 individual bankruptcy in May well, with Kamensky currently being appointed co-chair of the UCC. On July 28, he outlined a proposal to the committee to acquire sixty million MyTheresa shares at 20 cents for each share from other lenders wishing to provide their inventory.
3 times afterwards, having said that, Jeffries unveiled a bid at a value between thirty cents and 40 cents for each share.
According to the authorities, Kamensky pressured Jeffries into withdrawing by telling the financial institution he would use his placement on the committee to make sure its bid was turned down and if it moved forward with the give, Marble Ridge would stop doing business with Jeffries.
“Within an hour of understanding of a competing bid for the MyTheresa shares, Kamensky had undermined and manipulated the offering of those securities,” the SEC alleged.
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