Hedge Funder Pleads Guilty to Fraud Neiman Marcus Bankruptcy

Marble Ridge Capital LP’s Dan Kamensky and Neiman Marcus at Hudson Yards in New York (Getty; Jewish National Fund)

Dan Kamensky, the founder of hedge fund Marble Ridge Capital, has pleaded guilty to bankruptcy fraud related to Neiman Marcus, according to the Department of Justice.

Kamensky was involved in a scheme to pressure a rival bidder to abandon its higher bid for assets included in Neiman’s bankruptcy proceedings so that Marble Ridge could obtain those assets for a lower price. He was arrested in September.

“Daniel Kamensky abused his position as a committee member in the Neiman Marcus Bankruptcy to corrupt the process for distributing assets and take extra profits for himself and his hedge fund,” U.S. Attorney Audrey Strauss said in a DOJ statement.

“Kamensky predicted in his own words to a colleague: ‘Do you understand…I can go to jail?’… ‘this is going to the U.S. Attorney’s Office,’” Strauss continued. “His fraud has indeed come to the U.S. Attorney’s Office and now has been revealed in open court.”

Neiman filed for bankruptcy in May, and announced in July that it would permanently shutter its flagship store in Hudson Yards.

Kamensky’s tensions with the high-end department store date back to at least 2018, when he led a legal campaign against the chain’s private equity owners.

But after Neiman filed for bankruptcy, Marble Ridge offered 20 cents on the dollar to buy shares of MyTheresa, the retailer’s ecommerce business, from creditors. When Kamensky learned that a Jefferies client was considering buying the shares at a higher price, he allegedly attempted to use his influence with the bank to kill the deal.

Kamensky could face up to 50 years in prison. Sentencing has been scheduled for May 7.

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