New York hedge fund founder Kamensky sentenced to prison in Neiman Marcus fraud

The New York hedge fund founder who predicted he might “go to jail” for corrupting the sale of some assets during the bankruptcy of Neiman Marcus was sentenced on Friday to six months in prison. Daniel Kamensky, 48, had pleaded guilty in February to bankruptcy fraud for pressuring Jefferies Financial Group not to bid for securities belonging to the luxury retailer’s creditors so his now-closed Marble Ridge Capital LP could buy them at a lower price.

U.S. District Judge Denise Cote, who imposed the sentence, said she found Kamensky “deeply remorseful” but that he “came undone” from the pressures of running Marble Ridge.

“The bankruptcy process depends on trust and honest and good faith,” she said. “He betrayed his profession, his duty to others, his relationships. He broke the law.”According to prosecutors in Manhattan, Kamensky exploited his role as co-chair of a Neiman creditors committee last July to block Jefferies from bidding 30 cents per share for Neiman securities he wanted to buy for 20 cents per share. Prosecutors said Kamensky threatened to stop doing business with Jefferies if it pursued its bid, and quoted him asking an employee there to lie about what he had done.

“Do you understand... I can go to jail,” Kamensky was quoted as saying. “They’re going to say that I abused my position as a fiduciary, which I probably did, right?”

https://www.reuters.com/article/usa-crime-kamensky/update-1-new-york-hedge-fund-founder-kamensky-sentenced-to-prison-in-neiman-marcus-fraud-idUSL1N2MU1PQ