A former executive at a embattled New York real estate development company was indicted Wednesday on charges of conspiring in an $86.6 million fraud scheme.
Nir Meir, 49, former managing principal of HFZ Capital Group, is accused of defrauding investors, subcontractors and the city through a years-long scheme, including tax evasion, falsifying business records, and various other charges. He was charged with theft.
Meir was arrested Monday night at the 1 Hotel in South Beach, where he had rented an apartment. new york magazine report. He has pleaded not guilty before a Florida judge and now faces extradition to New York. Prosecutors allege that Meir and others falsified construction costs, lied to investors and inflated invoices to make some projects appear to be further along than they actually were.
Manhattan District Attorney Alvin Bragg said in a statement Wednesday, “These indictments depict widespread alleged fraud in the real estate industry, primarily led by one man: Neil Meyer.” .
HFZ Capital Group and Meir's attorneys did not respond to requests for comment.
The charges are the latest legal blow to HFZ, a once prominent Manhattan real estate developer that went bankrupt around 2020. Prosecutors allege that once HFZ's financial troubles became public knowledge through mounting lawsuits, investors demanded an inspection of the company's books. In response, Meir allegedly instructed his accountant to “falsify certain bank statements to reflect millions of dollars in investor funds when they were actually nearly empty.” There is.
“In one instance, Meir instructed his accountant to inflate a statement to falsely show that the account contained more than $24.6 million, when it actually contained $814,” prosecutors allege. did.
Since the closure, Meir has faced multiple lawsuits while living in Miami Beach, including one in New York state for creating a “Machiavellian scheme to gain wealth through theft, deception, and 'charm.'” It also includes allegations from a former business partner who has accused him of The magazine reported. Former partner Zeal Feldman alleges that Meir diverted millions of dollars in company funds, stole a home owned by HFZ Capital in the Hamptons, and even hired someone to impersonate a Korean investor. did. Feldman is seeking $688 million in damages from Meir in his lawsuit.
Israeli businessman Yoav Harlap claimed in a 2022 lawsuit that Meir lived a lavish lifestyle in Miami in exchange for repaying delinquent loans. The lawsuit, reported by The Real Deal, alleges that Meir lived with his wife in a $150,000-a-month Miami Beach mansion, chartered a yacht and also bought more than $1.5 million worth of gold bullion while keeping his assets hidden. claims.
Meir filed for bankruptcy in Florida last week after Harlap's $18.5 million civil judgment, saying he only had $50 in cash to his name. The Real Deal also reported that Meir is $30 million in debt.
Meir is also in the midst of a marital feud with his wife, Lanny Bartolacci, who has previously claimed that she had no knowledge of her estranged spouse's financial troubles. But Bartolacci revealed in court filings that Meir had borrowed hundreds of thousands of dollars from her father while fighting with creditors and partying.
