Omnibuild co-CEO John Mingione resigned from the company as he and the company face charges from the Manhattan D.A. for their role in an alleged fraud scheme orchestrated by former HFZ executive Nir Meir.
Mingione announced his resignation this week. Peter Serpico, the co-CEO, will run the company.
Mingione launched Omnibuild in 2007 where it became one of the largest construction firms in the city, but ran into issues when the D.A. brought charges against the firm. Prosecutors allege Meir skimmed money lent to the XI, a twisting condo project, with help from Omnibuild.
But Omnibuild and Mingione claim they are victims of HFZ’s bad acts and have pleaded not guilty.
The resignation will allow Mingione to focus on a recent lawsuit brought by Omnibuild against HFZ, Nir Meir, Ziel Feldman, Children’s Investment Fund and others, he said.
Omnibuild worked on the XI until June 2020, expecting to be paid from loan proceeds that lenders knew would never be delivered, its lawsuit in New York Supreme Court alleges.
According to the suit, Omnibuild repeatedly notified HFZ and its lenders that payments for its work on the XI had been missed, but were told to keep working and the money would come through. The contractor also alleges it repeatedly reported “financial issues and irregularities” to the defendants, who failed to investigate them. Omnibuild placed a $100 million lien on the XI project, citing payment shortfalls by HFZ.
“We are absolutely innocent and I am profoundly sorry for the hurt and pain caused by the D.A.’s wrongful actions,” said Mingione in a statement. “We have been fighting the charges night and day and I will not rest until our good name is cleared.”
Mingione said the move will also allow him to focus on health issues exacerbated by “recent events.”
“We have built a strong reputation in the industry, which I am proud of, and we will not let this unfounded indictment derail us,” said Mingione.