GRAVE THEFT IN THE SHADOWS: A New York hedge fund founder was handed a six-month prison sentence for his role in a brazen bankruptcy fraud scheme.
Daniel Kamensky, the founder and former manager of Marble Ridge Capital, had used his position to extort a rival bidder into abandoning its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings.
According to court documents, Kamensky had been working as a member of the Official Committee of Unsecured Creditors when he learned that a financial services company, the Investment Bank, was interested in bidding a price between 30 and 40 cents per share for the MYT Securities.
Kamensky then sent a series of messages to the Investment Bank’s senior trader, telling him not to place a bid and threatening to use his official role to prevent the Investment Bank from acquiring the MYT Securities if they proceeded with their bid.
The Investment Bank ultimately decided not to make a bid, and Kamensky was able to secure the MYT Securities at a lower price for Marble Ridge.
Kamensky pleaded guilty to the charges in February 2021 and was sentenced to six months in prison on [February 3, 2021].
MANDATORY FACTS:
Defendant: Daniel Kamensky
Criminal Charges: Bankruptcy fraud
City and State: New York, NY
Crime Date: July 31, 2020
Sentence: Six months in prison
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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