A New York real estate developer who declared bankruptcy was charged yesterday with stealing more than $86 million from investors through an elaborate series of frauds and scams that began in 2015, the New York prosecutor's office said.
Nir Meir was arrested on Monday in Florida, in the southeastern United States, following an arrest warrant issued by the state of New York, the Miami-Dade police department confirmed to AFP.
The 49-year-old businessman and his accomplices allegedly stole money from investors, contractors, and city officials, said Manhattan District Attorney Alving Bragg, who believes there was "widespread fraud in the real estate sector led primarily by Nir Meir.".
Meir filed for bankruptcy in Florida on February 1, declaring debts worth nearly $30 million, including thousands of dollars owed to credit card companies and a controversial $626,000 debt to American-Israeli tycoon Benny Shabtai.
According to a court declaration, Meir had only $50 in assets, but monthly expenses of $37,400 and lived in a luxurious beachfront property in Miami.
The prosecution alleges that Meir diverted funds from a major Manhattan real estate development to two companies controlled by HFZ Capital Group, a real estate company where he was managing director.
"The assets were primarily diverted to cover financial shortfalls in unrelated HFZ projects and, on occasion, to personal accounts controlled by HFZ executives, resulting in a shortfall of more than $37 million," the prosecutor said.
When HFZ's financial problems became public through a series of lawsuits, HFZ investors "demanded to inspect its financial records," Bragg says.
In one instance, Meir had an accountant inflate a statement of accounts to show that it contained $24.6 million, even though there was only $814.
The prosecution maintains that HFZ defrauded the city of more than $15.6 million by failing to pay taxes in the fiscal years 2018, 2019 and 2020.
Meir was a regular on the New York social scene, attending gallery openings and, according to New York magazine, was a fan of luxury cars and fine wine.
In addition to the criminal charges, Meir faces several lawsuits in New York for his time at the helm of HFZ, which was one of Manhattan's most prominent high-level promoters.
A lawyer for Meir did not return AFP's calls seeking comment.
