New York Hedge fund founder lands himself in prison for bankruptcy fraud

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Photo: Craig Warga/Bloomberg via Institutionalinvestor

Hedge fund founder who predicted he might “go to jail” for corrupting the sale of some assets during the bankruptcy of Neiman Marcus has finally landed himsef in prison.

Daniel Kamensky, 48, the founder and former manager of New York-based hedge fund Marble Ridge Capital, was sentenced to six months in prison for bankruptcy fraud on Friday, according to a statement from the United States Attorney’s Office in the southern district of New York.

The sentence comes after Kamensky was charged for “engaging in fraud and extortion to pressure a rival bidder to abandon its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings so that Marble Ridge could obtain those assets for a lower price,” according to the statement.

Kamenksy was arrested for his role in the alleged scheme in September 2020 and pled guilty to the charge in February. In addition to his prison time, Kamensky was sentenced to six months of supervised release on home confinement and ordered to pay a fine of $55,000.

“Daniel Kamensky committed bankruptcy fraud – undermining the integrity of bankruptcy proceedings and violating his fiduciary responsibility – in an effort to take extra profits for himself and his hedge fund,” Audrey Strauss, U.S. district attorney, said in the statement. “As he himself predicted, this fraud has now landed Daniel Kamensky in prison.”