Dan Kamensky, the hedge-fund founder who pleaded guilty to rigging a bid for shares in Neiman Marcus Group’s former Mytheresa subsidiary, is asking a federal judge for leniency amid a show of support from his peers in the distressed-debt investing community, Financial News reported. He faces up to 18 months in prison under federal sentencing guidelines as part of his agreement with federal prosecutors in February to plead guilty to one count of bankruptcy fraud, which carries a maximum sentence of five years in prison. Instead, his lawyers are asking U.S. District Judge Denise Cote to spare him prison, put him on probation and require him to do community service. He is scheduled to be sentenced on May 7. Kamensky shut down his hedge fund, Marble Ridge Capital, and laid off all its employees following his guilty plea, and donated $100,000 to charity, according to papers. He also agreed to never serve on an official bankruptcy committee, and has spoken to law students about his mistakes, court papers say. Among Kamensky’s arguments for leniency are that his actions, while wrong, were a quick reaction in a high-pressure moment during deal discussions, and that they caused no harm to creditors.
