On Wednesday, February 7, 2024, a bankrupt New York property developer, Nir Meir, faced charges for orchestrating schemes dating back to 2015. According to authorities, the whole incident resulted in the misappropriation of over $86 million from investors.
The accused, Meir, was arrested on Monday, February 5, in Florida based on a New York state warrant. The Miami-Dade police department confirmed that to AFP. Masterminded by 49-year-old Nir Meir and his associates, the scheme involved stealing from contractors, investors, and city authorities.
Manhattan District Attorney Alvin Bragg commented on the charges, stating, “These indictments depict allegations of widespread fraud within the real estate industry, primarily spearheaded by one man: Nir Meir.”
On February 1, Meir filed for bankruptcy in Florida, disclosing debts of nearly $30 million. These liabilities included outstanding balances owed to credit card companies and a disputed debt of $626,000 to American-Israeli mogul Benny Shabtai.
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According to a court filing, Meir claimed to possess only $50 in assets while sustaining monthly expenses of $37,400. Interestingly, he resided in a high-rise beachfront property in Miami. Prosecutors allege that Meir diverted funds to two companies under the HFZ Capital Group’s control for a significant Manhattan development.
Notably, these funds were for a significant Manhattan development. The prosecutor disclosed, “Assets were primarily diverted to address financial shortfalls on unrelated HFZ projects. And, at times, to personal accounts controlled by HFZ executives, leading to more than $37 million shortfall.”
As HFZ faced public scrutiny due to financial challenges and lawsuits, investors sought access to its financial records. In response, Bragg stated that Nir Meir instructed an HFZ accountant “to forge certain bank account statements to reflect millions of dollars in investor funds, when in fact, they were nearly empty.”
In one scenario, Nir Meir instructed an accountant to exaggerate an account statement, falsely indicating a balance of $24.6 million. However, the actual amount was a mere $814. In another case, prosecutors allege that Meir stole $24 million from funds meant for an office tower project on West 30th Street.
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Additionally, $4.6 million was stolen from investors for a fictitious project in San Francisco. Moreover, prosecutors assert that HFZ engaged in fraud by paying insufficient property taxes in 2018, 2019, and 2020.
This resulted in a deceit of the City exceeding $15.6 million. Nir Meir was once a prominent figure in the New York social scene. During this time, he visited gallery openings, and according to social bible New York magazine, he liked luxury cars and fine wine.
Aside from the criminal charges, Meir faces multiple lawsuits in New York. This is about his leadership at HFZ, once among Manhattan’s foremost high-end developers. According to Bloomberg News, Nir Meir denies any wrongdoing.
During the arraignment on Wednesday, February 7, all three Omnibuild executives with the company pleaded not guilty to the charges, according to the New York Post. Likewise, HFZ and Marrone also pleaded not guilty. Despite attempts to seek comment, a lawyer representing him did not respond to calls.
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