Prominent New York developer arrested on charges of massive fraud

A former executive at a prominent New York City development firm that collapsed amid an avalanche of lawsuits and investor bankruptcies was arrested this week and is expected to be charged in connection with a multimillion-dollar fraud scheme, according to several people with knowledge on the House. .

The developer, Nir Meir, was taken into custody Monday at the 1 Hotel South Beach in Miami and was expected to be extradited to New York City on charges filed by the Manhattan district attorney's office, the officials said. people.

Several other people and companies were expected to be charged in a series of indictments filed by the district attorney, Alvin L. Bragg, as part of a sprawling web of suspected criminal conduct involving Mr. Meir's former company, HFZ Capital Group, was involved.

Those expected to be charged include people involved with construction company Omnibuild, which has worked on at least one major HFZ project, including a client at the company, according to several people with knowledge of the matter.

A number of suspects in the case are expected to be arraigned on Wednesday.

A spokeswoman for the Public Prosecution Service declined to comment. A representative of Mr Meir, whose arrest took place first reported by Curbedcould not be reached for comment.

Charles E. Clayman, an attorney for HFZ, said the company would not comment until it saw the charges.

An Omnibuild spokesperson said in a statement that the company and the executives expected to be charged were innocent and portrayed them as victims of HFZ.

“The evidence will show that HFZ stole from Omnibuild, as well as from many others,” spokesman Josh Vlasto said.

HFZ attempted to become a major player in the New York City real estate market, building and acquiring thousands of luxury apartments in Manhattan.

At the company, Mr. Meir helped raise millions of dollars from investors, often wealthy foreigners. In 2019, the company managed more than $10 billion in properties, the company said.

The company began to crumble after it began developing its most ambitious project: the XI in Manhattan's Chelsea neighborhood, a pair of winding glass towers with luxury apartments and a luxury hotel. HFZ spent $870 million on the development site and construction began in 2016 under the direction of Omnibuild.

But before the opening, investors and contractors accused HFZ of missing payment deadlines and said it owed them millions of dollars. Omnibuild pulled out of the project in 2020, claiming HFZ owed the construction company more than $100 million.

A prominent investor in HFZ, Israel's Yoav Harlap, sued Mr. Meir in 2021, accusing him of refusing to repay a nearly $20 million loan and depositing money in personal accounts to avoid repayment.

Mr. Meir, 49, filed for bankruptcy last week in Florida, where he moved after leaving HFZ at the end of 2020.

The XI project declared bankruptcy in 2021, before completion, and was purchased by two other developers, who renamed it One High Line. It opened late last year. HFZ also lost four other Manhattan apartment buildings in 2021.

HFZ was founded in 2005 by Ziel Feldman, who was not expected to be charged in the scheme, according to people with knowledge of the matter. His wife, Helene Feldman, said on Tuesday that the couple had no comment on Mr Meir's arrest.

In lawsuits against the firm, Mr. Feldman alleged that he turned over day-to-day management of HFZ to Mr. Meir and blamed him for misspending his money and causing its demise.