Marble Ridge Capital Founder Admits to Neiman Marcus Fraud

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Neiman Marcus Store Walnut Creek. Flickr.

Marble Ridge Capital founder Dan Kamensky pleaded responsible to fraud, 5 months after he used to be charged in New York with abusing his place on a Neiman Marcus Group Inc. chapter committee to acquire property at an artificially low value.

Kamensky, 48, of Roslyn, New York, used to be charged via federal prosecutors in Manhattan in September with pressuring a rival to abandon the next bid for Neiman Marcus property so Marble Ridge may get them inexpensive. The luxurious division retailer chain filed for Chapter 11 chapter coverage in May and Kamensky used to be a member of a committee of unsecured collectors. He faces so long as 5 years in jail at his sentencing, which is scheduled for May 7.

Even in contentious chapter instances, the place collectors and borrowers steadily trade fees of unhealthy religion and unfair deal-making, it’s uncommon for prison fees to be filed.

In a listening to ultimate yr ahead of a chapter pass judgement on in Houston who referred Kamensky to federal prosecutors, the pass judgement on criticized the investor in surprisingly private language, at one level calling him a thief “of the bottom persona.”

An afternoon after Kamensky’s arrest, the chapter pass judgement on authorized a plan that passed possession to Neiman Marcus collectors in go back for forgiving about $four billion of the chain’s $5.Five billion in borrowings.

“Daniel Kamensky abused his place as a committee member within the Neiman Marcus chapter to corrupt the method for distributing property and take further income for himself and his hedge fund,” Acting Manhattan US Attorney Audrey Strauss stated in a observation Wednesday.

Kamensky’s legal professionals didn’t instantly reply to an e mail in search of remark at the plea.

New York-based Marble Ridge used to be based in 2015 via Kamensky, a former spouse at hedge fund Paulson & Co. who began his occupation as a chapter legal professional. The company specialized in distressed debt investments and the restructuring of bothered issuers.

Marble Ridge close down and began returning cash to buyers in August after a US govt investigation discovered Kamensky, its managing spouse, at fault for attempting to intrude with Neiman’s public sale of property in chapter.

Kamensky used to be accused of securities fraud, extortion and obstruction for pressuring an funding financial institution to drop its plan to outbid Marble Ridge for a stake in Neiman’s Mytheresa unit throughout the luxurious store’s chapter, after which in search of to quilt it up.

Creditors have been hard a work of Mytheresa to catch up on their losses and reckoning on Kamensky to assist get the absolute best go back for everybody. US officers declare Kamensky sought to profit from his position to receive advantages his portfolio on the expense of the opposite collectors.

As a part of a separate agreement with the United States trustee, an arm of the Justice Department that displays company bankruptcies, Kamensky agreed to pay $1.four million to quilt legal professional charges similar to the investigation of his behavior and agreed no longer to take a look at to gather any debt Neiman Marcus would possibly owe him till different collectors are repaid. He additionally agreed to make $100,000 in charitable donations and carry out 200 hours of group provider. Kamensky has agreed by no means to serve on every other reputable chapter committee.

By Chris Dolmetsch, Katherine Doherty and Steven Church

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