New York Property Developer Indicted For Stealing Over $86 Million

On Wednesday, Nir Meir, a now-bankrupt New York property developer, was indicted for the massive theft. Authorities accused him of a yearslong campaign of fraud that cost investors, contractors, and the city tens of millions of dollars.

Explosive claim

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“These indictments depict allegations of widespread fraud within the real estate industry,” Manhattan District Attorney Alvin Bragg stated, “primarily spearheaded by one man: Nir Meir.”

Powerful position

According to prosecutors, Meir illegally funneled funds to companies controlled by HFZ Capital Group. At the time, HFZ was a prominent Manhattan luxury developer, and Meir was its managing principal. The company collapsed in 2020.

Covering losses

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“Assets were primarily diverted to cover financial shortfalls” on HFZ projects that were not connected to those the funds had been assigned to, prosecutors explained. By law, the funds were to be used on a specific Manhattan development.

Personal gain

“At times,” prosecutors continued, the illegally diverted assets were sent “to personal accounts controlled by HFZ executives.”

Living lavish

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According to New York magazine, Meir indulged himself in New York City’s many pleasures, living a life filled with luxury cars, fine wine, and high-profile parties.

Money gone

In total, prosecutors alleged that these diversions led “to a shortfall of more than $37 million.”

Covering tracks

When investors started demanding access to HFZ’s financial records, Meir allegedly ordered accountants to cover the gaping holes in the company’s finances. According to Bragg, one accountant was told “to forge certain bank account statements to reflect millions of dollars in investor funds, when in fact they were nearly empty.”

Extreme exaggeration

Prosecutors highlighted one alleged example of such inflation, in which an account with little more than $800 was altered to appear to contain $24.6 million. That’s an increase of more than three million percent.

Defrauding the city

“By failing to pay adequate property taxes in 2018, 2019, and 2020,” prosecutors alleged, “HFZ defrauded the City of more than $15.6 million.”

End of the line

On Monday, authorities arrested Meir in Florida. According to prosecutors, the 49-year-old had been living in a luxury oceanfront property in Miami.

Not adding up

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On Feb 1, Meir filed for bankruptcy in Florida. He reported tens of millions of dollars in debt and claimed to have just $50 of assets. However, he also reported spending $37,400 per month.

Further trouble

While living in Miami, Meir was the target of numerous lawsuits. One of these, filed in 2022, ended in an $18.5 judgment against Meir, which was what pushed him to file for bankruptcy.

Allegations

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In that case, Israeli businessman Yoav Harlap claimed that Meir’s luxury Miami Beach property cost him $150,000 per month. The case also accuses Meir of purchasing millions in gold bullion and hiding his assets.

More accusations

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According to New York magazine, one case brought by his former business partner accused him of forming a “Machiavellian scheme to enrich himself through theft, deception, and ‘charm.’”

Naughty business

According to the Daily Beast, the former business partner “alleged that Meir diverted millions of the company’s funds into his own pocket, stole an HFZ Capital-owned house in the Hamptons, and even hired someone to impersonate a Korean investor.” The partner is seeking $688 million from Meir.