The DOJ recently unsealed a criminal complaint filed in the U.S. District Court for the Southern District of New York against a manager whose hedge fund was an unsecured creditor in the Neiman Marcus bankruptcy. The hedge fund sought to purchase certain assets in the proceeding. The manager, who co‑chaired the Official Committee of Unsecured Creditors, allegedly pressured an unnamed New York-based global investment bank with which the fund did business to withdraw a competing bid for those assets and then attempted to cover up his actions. This article details the government’s allegations and the associated securities fraud, bribery and obstruction of justice charges. For other considerations in bankruptcies, see “How Claim Traders Can Pursue Reclamation and Administrative Expense Claims in Retail and Other Insolvencies
” (Jan. 26, 2017); and “BakerHostetler Event Highlights Investment Strategies, Considerations and Uncertainties of Distressed Debt Investments by Hedge Funds
” (Apr. 9, 2015).