Prominent NYC Real Estate Developer Charged in $86M Fraud Scheme: DA

A prominent New York real estate developer has been arrested and charged in connection to a fraud scheme worth $86 million, according to the Manhattan District Attorney's Office.

Manhattan District Attorney Alvin L. Bragg Jr. on Wednesday announced the indictment of Nir Meir, the managing principal of now-shuttered real estate company HFZ Capital Group, on varying counts of larceny, conspiracy, falsifying business records, tax fraud, and money laundering. The charges were also brought on to other industry executives who collaborated with Meir.

Per the DA office's press release, the case stems largely from "The XI," a failed luxury Manhattan condo project in the Chelsea neighborhood, and "29th & 5th," a 34-story office skyscraper in NoMad.

Prosecutors claim Meir hired construction company Omnibuild in 2015 to construct two mixed-use commercial and residential towers for The XI. During the partnership, Meir directed a total of $253 million in project funds to various LLCs controlled by HFZ to cover financial shortfalls on the company's other projects and also to personal accounts controlled by company executives.

This later led to HFZ owing more than $37 million to Omnibuild and its subcontractors. In an attempt to fix the shortfall, Meir and several Omnibuild and HFZ executives collaborated to falsify business records and net additional loans from lenders.

How Much Did They Get in Stolen Funds?

In total, they ripped off over $86 million from investors, contractors, and the city. That included $15.6 million in city property taxes that allegedly went unpaid from 2018 to 2020. Meir allegedly instructed his accountants to stop HFZ from paying property taxes.

"These indictments depict allegations of widespread fraud within the real estate industry primarily spearheaded by one man: Nir Meir," District Attorney Bragg said. "In total, we allege these defendants' conspiracies netted them a total of $86 million stolen from investors, contractors, and the City of New York. My Office's Rackets Bureau is laser-focused on fraud in the construction and real estate industries and will continue to root out people who steal from investors and corrupt the market."

Meir is currently in police custody and is in the process of being extradited to New York.