The main headlines of Fox Business Flash are here. Check out what is clicking on FoxBusiness.com.
On Wednesday, a hedge fund founder pleaded guilty to a criminal charge, claiming that he defrauded Neiman Marcus’s creditors by pressuring an investment bank not to make an offer against his hedge fund to buy their securities.
DISCOVER FOX BUSINESS ON THE MOVE BY CLICKING HERE
Marble Ridge Capital founder Daniel Kamensky, 48, filed a single federal bankruptcy fraud appeal in Manhattan federal court. A plea bargain suggested a sentence of up to 18 months in prison. The sentence was set for May 7 for the resident of Roslyn, New York.
Manhattan prosecutor Audrey Strauss said Kamensky had abused his position as a committee member in the bankruptcy of Neiman Marcus to corrupt the asset distribution process and make extra profits for himself and his hedge fund.
Authorities say he coerced a competitor to withdraw an offer for real estate assets that was greater than that offered by his hedge fund.
NEIMAN MARCUS FILES FOR BANKRUPTCY PROTECTION
Kamensky’s hedge fund managed assets of more than $ 1 billion by investing in bonds in troubled situations, including bankruptcies.
Before opening his hedge fund, Kamensky worked as a bankruptcy attorney at a well-known international law firm and as an investor in bad debt at major financial institutions, prosecutors said.
FOUNDER OF THE HEDGE FUND ARRESTED IN CASE LINKED TO NEIMAN MARCUS
Neiman Marcus, a chain of luxury department stores in the United States with stores across the country, filed for Chapter 11 bankruptcy protection at the United States Bankruptcy Court in Texas last May.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
Prosecutors said Kamensky committed his fraud over the summer.
Joon H. Kim, Kamensky’s lawyer, said his client admitted that what he did was wrong and “deeply regrets his conduct on July 31, 2020 and the great pain it caused in his family, colleagues and others”.