US prosecutors charged a hedge-fund manager with fraud for suppressing a rival bid for a prized piece of bankrupt retailer Neiman Marcus Group, then trying to cover up the misconduct when it came to light.

Dan Kamensky, the founder of Marble Ridge Capital LP, was arrested on 3 September and charged by federal prosecutors in New York with securities fraud, wire fraud, extortion and obstruction of justice in connection with his efforts to acquire shares in Neiman’s MyTheresa e-commerce business.