Daniel kamensky, the hedge investment manager at centre associated with the neiman marcus personal bankruptcy, has been arrested and charged with fraud, extortion and obstruction of justice for presumably wanting to subvert a rivals bid for just one of this merchants most valuable possessions.
The marble ridge founder deals with a potential prison term if found guilty. two associated with the fees carry maximum sentences of twenty years.
The fees brought by new york federal prosecutors, as well as a different municipal suit submitted against mr kamensky by the us securities and exchange commission on thursday, stem from texting and conversations between the hedge investment manager and investment bankers at jefferies after july, including one discussion where mr kamensky is alleged to have tried a cover-up.
In a discussion with an employee of the investment lender, kamensky went so far as to express, possibly i should head to jail, fbi associate director-in-charge william sweeney stated on thursday. these days, weve eliminated the possibly, and forced him to answer for his conduct.
Mr kamensky declined through a representative to review.
Prosecutors alleged that mr kamensky breached their appropriate obligations as co-chair of neimans unsecured lenders committee, which stopped him from profiting at the expense of likewise situated investors, as he attempted to stop jefferies from investing in a quote for shares in neimans lucrative online subsidiary mytheresa.
Mr kamensky, whom began his career as a bankruptcy lawyer, had waged a years-long promotion to put up neimans private equity owners responsible for exactly what he alleged was a deceptive make an effort to go mytheresa out-of lenders get to. the owners, ares and cppib, ultimately decided the allegations, allocating favored stock in mytheresa to unsecured creditors, including marble ridge.
Other recipients associated with preferred stock included estee lauder, chanel and other trade sellers who'd little interest to hold on to illiquid securities. mr kamensky wanted marble ridge purchasing their holdings at a price reduction.
Whenever jefferies joined the bidding on the behalf of another client just who wished to purchase the mytheresa shares, mr kamensky became highly agitated, and told the financial investment bank to face down, prosecutors stated.
Do not send in a bid, mr kamensky penned to a single for the bankers, after mastering that jefferies in the pipeline to offer as much as $0.40 regarding buck for securities that mr kamensky sought to obtain for as little as 1 / 2 that cost.
The lender initially acquiesced, calling mr kamensky a good commitment, nevertheless the so-called plan begun to unravel whenever its executives simultaneously informed the lenders committee what had happened, prosecutors stated.
Whenever word-of mr kamenskys actions began to spread, the hedge fund manager attempt[ed] to hide the fraud, prosecutors said.
Whilst the discussion with jefferies carried on, mr kamensky did actually reckon with just how various other creditors might react, prosecutors stated. theyre probably report this to your us attorneys workplace, okay?, he stated. the united states lawyer is going to research this.
Mr kamensky admitted in a sworn interview with an us bankruptcy trustee that the phone call had been one of many worst mistakes of his life and final thirty days marble ridge told investors it might power down.
Mr kamensky may also deal with separate sanctions from the personal bankruptcy judge. a judge is expected to accept neimans restructuring on friday.