Distinguished NYC developer Nir Meir arrested in huge years-long $86M fraud scheme: prosecutors

Metro

By Kyle Schnitzer and Emily Crane

A former bigwig at a once-prominent Huge Apple improvement agency and a slew of different actual property business executives have been indicted Wednesday for allegedly stealing greater than $86 million in a years-long fraud scheme, Manhattan prosecutors stated.

Nir Meir, 49, and the since-shuttered HFZ Capital Group he as soon as labored for allegedly swindled thousands and thousands of {dollars} from traders, subcontractors and New York Metropolis throughout his 5 years on the firm, in response to an indictment.

Two different former HFZ workers and three Omnibuild development agency executives have been additionally slapped with various counts of larceny, conspiracy, falsifying enterprise data, tax fraud and cash laundering within the wide-ranging legal probe.

The case largely facilities on the event of a luxurious Manhattan apartment challenge referred to as the XI, prosecutors allege.

HFZ — based in 2005 by Ziel Feldman — had employed Omnibuild in 2015 to assemble two mixed-use business and residential towers alongside the Excessive Line in Chelsea, in response to the indictment. Feldman isn’t charged within the case.

Prosecutors allege Meir directed the challenge’s funds, totaling greater than $253 million in 4 years, to be transferred to numerous LLCs managed by HFZ — regardless of the belief belongings being legally required for use on the event.

As a substitute, the belongings have been allegedly diverted to cowl monetary shortfalls on unrelated HFZ initiatives, and at occasions, to non-public accounts managed by HFZ executives, which led to a shortfall of greater than $37 million owed to Omnibuild and its subcontractors, the indictment alleges.

In a bid to fill the shortfall of funds and conceal the true value of labor, prosecutors allege Meir conspired with Omnibuild executives — John Mingione, 54; Roy Galifi, 62; and Kevin Stewart, 48 — and his HFZ colleagues, Anthony Marrone, 64; and Louis Della-Peruta, 69, to inflate month-to-month invoices.

After HFZ’s monetary difficulties surfaced as a result of a string of lawsuits and traders began asking questions concerning the agency’s monetary data, Meir allegedly directed an HFZ accountant to then forge financial institution statements to mirror thousands and thousands of {dollars} in investor funds.

One assertion was allegedly cast to make it seem as if the account had over $24.6 million in funds when it contained simply $814, in response to prosecutors.

The XI challenge finally went into foreclosures in 2021 following the monetary collapse of HFZ amid a trove of investor lawsuits and different foreclosures.

“These indictments depict allegations of widespread fraud inside the actual property business primarily spearheaded by one man: Nir Meir,” Manhattan District Legal professional Bragg stated.

“In whole, we allege these defendants’ conspiracies netted them a complete of $86 million stolen from traders, contractors, and the Metropolis of New York. My Workplace’s Rackets Bureau is laser-focused on fraud within the development and actual property industries and can proceed to root out individuals who steal from traders and corrupt the market.” 

Meir, who was arrested in Miami Seaside, Florida, late Monday, is within the strategy of being extradited again to New York.

All three Omnibuild executives, in addition to the corporate, pleaded not responsible to the fees throughout their arraignment on Wednesday.

“The proof will present that HFZ stole from Omnibuild because it did from many others. We completely preserve our innocence and stay up for persevering with to work with the DA to result in this outcome as shortly as attainable,” a spokesperson for the corporate stated.

HFZ and certainly one of its execs, Marrone, additionally pleaded not responsible. The opposite HFZ defendant, Della-Peruta, is anticipated to give up Thursday morning and continues to be awaiting arraignment.