The Real Deal New York

Jona Rechnitz has skipped town: report

The JSR Capital head is due to give evidence in the NYPD bribery probe
July 10, 2017 02:05PM

Jona Rechnitz

Jona Rechnitz, the real estate player who is expected to testify for the federal government in a New York Police Department bribery probe, has reportedly left the city.

Rechnitz, who founded JSR Capital, moved back to California, the New York Post reported, citing sources. Rechnitz is a key witness in multiple investigations of possible corruption at the NYPD.

The FBI is looking into allegations that cops accepted gifts and trips abroad from Rechnitz and another man, Jeremy Reichberg, in exchange for favors.

Rechnitz was also recently accused of tricking his wealthy friends into investing in an alleged Ponzi scheme run by former teacher Jason Nissen, according to the Post. He’s also been accused of being a recruiter for a Ponzi scheme involving restaurateur Hamlet Peralta.

In May, Rechnitz was facing foreclosure on his retail and office building in Borough Park.

His firm was in default on a $15 million loan it when Rechnitz purchased the 16,000-square-foot Solomon Plaza at 5002 13th Avenue in April 2015 for $25 million, court records show. In September, Rechnitz put a Midtown development site on the market for $26 million.

In August, the Post reported that his stint selling units at the historic Apthorp building a few years earlier was a massive failure. Rechnitz, an alumnus of Africa Israel, reportedly blew through a $20 million marketing budget and sold just four units — all to friends and family, and at massively discounted prices.  [NYP]Miriam Hall