I expect this week to be a bit choppy with the U.S. election, uptick in cases of the deadly virus, and potential stimulus talks.

However, the dust should settle a bit this week and the market may find a clear direction very soon. Who really knows though with all this uncertainty.

When it comes to such a wacky market environment, I love to turn to the “smart money”. That includes financial institutions, hedge funds, professional traders and other Wall Street whales.

You see, these players are throwing down massive bets in the options market, and my scanner detects these trades and I can legally steal them and make them my own.

If you want to learn how this strategy works, the first step is to get into the right mindset.

That said, I want to talk to you about a case that came up that involves a hedge fund manager who screwed a bankrupt luxury retailer…

It really sheds light on how dirty these players are, but more importantly I want to teach you how I level the playing field.

How This Hedge Fund Allegedly Rigged Bids In A Private Deal

This year has held quite a few shocking bankruptcies.

24 Hour Fitness. Borden Dairy. Brooks Brothers. Hertz. JCPenney. The list is endless. Hell, Forbes has started a Bankruptcy Tracker to keep up with companies that crumbled this year.

Neiman Marcus is also on the list. But the luxury retailer falling to its knees is not the scandal.

It would be a man that sat on the company’s bankruptcy committee that brought the chaos. The company’s fund manager who committed fraud, extortion, and obstructed justice.

And now he has landed in cuffs.

Daniel Kamensky is the founder of an NYC hedge fund, Marble Ridge Capital. A company whose specialty is distressed investing opportunities. A niche that would give him a powerful position.

Before this year Marble Ridge held $65 million of the retailer’s unsecured debt by way for 2 bonds. As well as about $9 million interest in an unsecured loan made to the company.

The Tale Of The Tape

On May 7th, Neiman voluntarily filed a bankruptcy petition. The very same day the Neiman’s bankruptcy committee went fishing. Asking those that might have an interest in acting as “fiduciaries who represent all unsecured creditors as a group.”

Three days later Marble Ridge jumped on the hook with its founder volunteering as tribute. Daniel joined the committee and even became a co-chair.

During this time Marble Ridge held about 50% of Neiman’s unsecured debt.

As the summer heated up so did Daniel’s greed.

The Committee was tasked with overseeing an offering for the Neiman’s bankruptcy estate. Something Daniel planned to bid and win.

July 31st Jefferies Financial Group bid on Neiman’s securities for a client.

After the bid came in, the committee discussed the prospects this bid could have. It could potentially lead to higher returns…. Much higher than the pending offer from Marble Ridge.

It was around 3 pm when Danial learned that his competition had placed a bid for $0.30 a share.

Hedge Fund Founder Starts His Dirty Deeds

It was upon this news he jumped into fast action. Calling up an employee at Jefferies and pressuring them to withdraw the company’s bid.

Daniel reached out to Jefferies over Instant Bloomberg’s chat. Telling the employees to ask others to “stand DOWN” and “DO NOT SEND IN A BID.”

Within an hour, Daniel had spoken to several Jefferies employees.

Telling them he had been working towards this for years. ─ He had spent $3.5 million in legal fees to make this project work. He had even made the settlement Neiman’s parent company possible.

And telling them the only thing Jefferies bid would do was drive up what HE had to pay.

Daniel then started making threats.

He told the employees that he could stop Jefferies from buying the shares as co-chair of the committee.

He told them he would stop working with Jefferies, who happened to be one of Marble Ridges’ largest trading partners. A cut that would cost the company commissions as well as valuable data.

Just a hair after 4 pm, the choice was made. Jefferies withdrew the bid, explaining that it would be honest with their client on why.

Daniel’s petty move screwed over Neiman’s unsecured creditors while giving the finger to his fiduciary duties.

What Daniel did not expect was the Jefferies employee’s brutal honesty.

Jefferies Employee Doesn’t Back Down

They called one of the other committee chairs and told them a “client” had pressured them into withdrawing the bid. The committee knew it was Daniel.

By 6 pm, the whole committee, minus Daniel knew what he did.

By 7 pm, the committee had talked to Marble Ridge and the company confirmed that Daniel HAD contacted Jefferies BUT they misunderstood his intentions… Daniel only wanted to tell Jefferies to only bid if they were serious to avoid disrupting Neiman’s bankruptcy.

By 8:10 pm, Daniel called the Jefferies employee again. Starting the convo off with “This conversation never happened.”

… What Daniel did not know was he was being recorded.

Daniel asked him if he knew that he could go to jail for this. The employee told Daniel that it was him that demanded the company withdraw their bid to keep their business relationship.

This conversation went on and on, but one thing was clear from the record.

Daniel Kamensky knew he messed up and could go to jail for it.

A few weeks later, Marble Ridge still was bidding on the shares.

Daniel’s arrest would cause the shares not to be sold and possibly never sold. The shares are now in a liquidation trust.

Neiman is now suing Marble Ridge for tens of millions of dollars for behavior during the bankruptcy proceedings.

Daniel has been charged with securities fraud, wire fraud, extortion, and obstruction of justice.

And Marble Ridge might possibly have to close its doors for good.

Listen, there are so many dirty players in the market, not just in the private areas.

Some will stop at nothing and don’t care what happens to them, all to make a quick buck. However, some Wall Street whales get craft at hiding their best trade ideas, and they do so in the options market.

You can learn all about it in my “smart money” trading guide here.

You’ll discover how these players leverage the options market to generate explosive returns, and learn how I take advantage of their ideas, legally and ethically.

Grab your complimentary eCopy here.


Kyle Dennis

Straight outta college Kyle Dennis taught himself to trade, and then made over $7 million in trading profits by the time he was 28 years old. Kyle reveals how to find, track, and profit from lucrative trades for exceptional profits. Thousands of traders follow him every day to learn how to target these high probability trades.

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