Dive Brief:

• The Securities and Exchange Commission (SEC) has charged Daniel Kamensky, co-chair of the unsecured creditors committee in the Neiman Marcus Group Chapter 11 bankruptcy proceedings, with abusing his position to benefit his New York-based management firm, Marble Ridge Capital.
• Kamensky sought to purchase securities being distributed as part of the bankruptcy proceedings and coerced a competing bidder, Jefferies Financial Group, into withdrawing its bid. That bid was higher and would have led to a larger distribution to unsecured creditors.
• "Kamensky abused his position as a fiduciary to the Neiman Marcus unsecured creditors by secretly working against them," said Daniel Michael, chief of the SEC's Division of Enforcement's Complex Financial Instruments Unit. 

Dive Insight:

Neiman filed for Chapter 11 bankruptcy on May 7. Kamensky was appointed co-chair of the unsecured creditors committee and proposed purchasing 60 million shares of MyTheresa, Neiman's online shopping platform, for 20 cents a share. A few days later, Jefferies proposed a bid of between 30 and 40 cents per share. 

According to the complaint, in his position as co-chair, Kamensky wouldn't allow the competing bidder to buy the securities. When his actions came to light, he allegedly attempted to cover up his misconduct by trying to persuade the other bidder not to describe his conduct as a threat.

"Misrepresentations and deceptive conduct have no place in securities offerings," Michael said. 

The SEC's complaint, filed in federal district court in New York, charges Kamensky with violating an antifraud provision of federal securities laws. The SEC is requesting a permanent injunction and civil penalties.

Separately, the U.S. Attorney's Office for the Southern District of New York has brought criminal charges against Kamensky.