SEC charges fund manager for fraud in securities offering in Neiman Marcus bankruptcyChristian Fernsby ▼ | September 4, 2020
The Securities and Exchange Commission charged Daniel Kamensky, co-chair of the unsecured creditors committee in the Neiman Marcus Group Ltd. LLC Chapter 11 bankruptcy proceedings.
Charges Neiman Marcus
Topics: SEC Neiman Marcus
As co-chair of the unsecured creditors committee, Kamensky acted as a fiduciary to all unsecured creditors. The SEC's complaint alleges that Kamensky sought to take advantage of his role on the committee to manipulate a bidding process to the benefit the portfolio he managed, and at the expense of the unsecured creditors.
According to the complaint, in his role as fund manager, Kamensky sought to purchase securities being distributed as part of the Neiman Marcus bankruptcy proceedings.
As alleged, on July 31, 2020, Kamensky coerced a competing bidder for the securities into withdrawing its bid, which was higher than Kamensky's own bid and would have led to a larger distribution to the unsecured creditors.
Kamensky allegedly indicated that, in his positon as co-chair of the committee, he would not allow the competing bidder to successfully buy the securities. When his actions came to light, Kamensky allegedly attempted to cover-up his misconduct by trying to persuade the other bidder not to describe Kamensky's conduct as a threat.
The SEC's complaint, filed in federal district court in New York, charges Kamensky with violating an antifraud provision of the federal securities laws. The SEC is requesting a permanent injunction and civil penalties.
In a parallel action, the U.S. Attorney's Office for the Southern District of New York announced criminal charges against Kamensky. ■