NEW YORK (CBSDFW/AP) — A hedge fund founder was charged with defrauding Neiman Marcus creditors by pressuring an investment bank not to bid against his hedge fund to buy securities from creditors.

Daniel Kamensky was arrested Thursday as charges were revealed in Manhattan federal court.

The 47-year-old Roslyn, New York, resident was due to appear in court. His lawyers declined comment through a spokesperson.

Acting Manhattan U.S. Attorney Audrey Strauss said in a release that Kamensky broke the law when he tried to coerce a competitor to withdraw a bid for assets of the bankruptcy estate that was higher than his hedge fund wanted to offer.