Developers of a recent project designed to build $2 billion extravagant towers near the New York City High Line are facing criminal accusations after their real estate group was allegedly found at the center of a money laundering scheme.
Nir Meir, 49, a developer and managing director at the HFZ Capital Group, which is the company at the center of the alleged corruption, aspired to leave his mark on the Manhattan skyline but is now facing serious jail time along with other associates of his after authorities accused him of running a multi-million dollar fraud scam on Wednesday.
Meir was set to be extradited to New York after being arrested in Miami earlier this week- and his company has collapsed amid plans to build the luxury towers.
The real estate developer is being accused of orchestrating schemes that ripped off $86 million from investors, contractors, and the city, according to Manhattan District Attorney Alving Bragg.
Four of his alleged accomplices were arraigned Wednesday in Manhattan Supreme Court.
Roy Galifi, John Mingione, and Kevin Stewart- executives with a construction company that worked with Meir- were accused of grand larceny, conspiracy, and criminal possession of stolen property along with falsifying business records, which are charges they have all denied.
Meir’s colleague, Anthony Marrone, was hit with the same charges and has pleaded not guilty.
The ambitious project to build a mega-development near the High Line was reportedly warped into a hotbed of fraud and theft under Meir’s leadership of HFZ, where he was the managing director.
Allegedly, he used the funds intended for the project covering a whole square block of Chelsea, from W. 17th to W. 18th STs. and 10th to 11th Aves, to patch up HFZ’s other struggling projects.
In total, $37 million were supposedly stolen as the project reportedly went into foreclosure in 2021. Other developers then took over and opened it as One High Line last year.
Meir and his accomplices allegedly hid the fraud through fake invoices and forged bank statements, according to prosecutors.
In the end, the frauds entailed over $86 million in stolen funds, which includes $15 million in city property taxes that reportedly went unpaid.
“These indictments depict allegations of widespread fraud within the real estate industry primarily spearheaded by one man: Nir Meir,” Bragg said in a statement.
Along with six men, HFZ and an affiliate plus the construction company, Omnibuild, were hit with various charges. The businesses have pleaded not guilty.
Meir is set to appear in court later this month, as reported by prosecutors.
These accusations mark the downfall of a prominent and competitive figure in the cutthroat New York City real estate industry.
