Hedge Fund Manager Sent to Jail for Neiman Marcus Bankruptcy Fraud
DO NOT PASS GO
A New York federal judge has sentenced hedge fund executive Dan Kamensky to six months in prison for attempting to defraud a payout in Neiman Marcus’ bankruptcy case. The founder of Marble Ridge Capital was arrested last September and charged with bankruptcy fraud for trying to pocket a chunk of a $172 million payment to the department store’s creditors. The settlement came in the form of shares in one of the store’s assets, an online retailer, which the distressed debt manager offered to buy up at a discount from those looking to cash out quickly. But a subsequent probe found Kamensky had pressured another potential buyer not to compete with him for the sales, writing in one exchange “DO NOT SEND IN A BID,” and pleading in a recorded call for the buyer “not to put [him] in jail.”
Kamensky pleaded guilty in February, submitting over 100 letters of support from friends and colleagues to bolster his request to dodge prison time. After his release, he’ll serve another six months under house arrest and pay a $50,000 fine.