Marble Ridge: You Can (Allegedly) Break Every Securities Law In The Books And Still Not Cost Anyone Any Money - Dealbreaker

That Dan Kamensky fucked up spectacularly and disastrously is at this point fairly well-attested. His bank thought his demand that they not drive up the price of an asset he hoped to buy from a bankrupt company on whose creditors committee he served was bad enough to turn him in. The U.S. bankruptcy and the judge overseeing the case were certainly not amused; neither were the Justice Department or Securities and Exchange Commission. Even Kamensky himself has acknowledged how deeply he stepped in it, calling his instruction to Jefferies to “STAND DOWN” a “grave mistake” likely to send him to prison, and certainly serious enough to shut down his Marble Ridge Capital hedge fund.

So, yes: A fuck-up, and probably a felonious fuck-up at that. But committing a crime and causing any actual harm are two different things. Neiman Marcus, which was not well-disposed toward Kamensky even before his little MyTheresa misadventure, certainly thinks there was actual harm—$60 million worth, in fact. Well, Marble Ridge—sorry as it is about the whole sordid state of affairs—isn’t quite so sure.

Marble Ridge Capital Master Fund, a onetime unit of the hedge fund tied up in litigation with Neiman Marcus, is urging a bankruptcy judge to reject the luxury retailer’s request to effectively freeze some of the master fund’s money…. The master fund argued in the filing that Neiman cannot show that Kamensky’s actions actually caused any loss to the company.

Marble Ridge unit says Neiman Marcus can’t prove losses in bankruptcy litigation [Reuters]

Related

neiman

Neiman Marcus Does Not Think Hedge Fund Manager Has Suffered Enough

Jail is not sufficient. $60 million and subordinated claims might be.

teapots

The Mackenzie-Childs Saucepan Calls The Silver Renaissance Teapot Black

Did a hedge fund manager learn a little too much from his erstwhile enemies?

neiman

Maybe Bankruptcy’s Not The Best Time To Show Off Your Silk-Encrusted Mansion

Neiman Marcus’ Geoffroy van Raemsdonck is feeling himself a little too hard.

coronavirus

Pharma Accused Of Taking Break From COVID Vaccine Work To Give Former Hedge Fund Owner An Opportunity To Do A Little Insider Trading

That pause in selling Vaxart shares and increase in ownership ceiling sure was fortuitously timed for Armistice Capital, no?

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Judge Less Interested In Negotiating Than College Admissions Fraudsters

‘You need to go to jail’ is probably not what Manuel Henriquez was hoping to hear.

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Allegedly Fraudulent Hedge Fund Counters Fraud Allegations With Award Won Through Alleged Fraud

Goldsky Asset Management may have no assets, but it does have hardware.