Nir Meir tries to go from Rikers Island to Long Island

Nir Meir arrived in New York criminal court in Lower Manhattan handcuffed and wearing gray prison garb on Tuesday afternoon in his first appearance in court since his February arraignment.

His goal: to reduce his bail, get out of Rikers Island and move to Long Island as he awaits trial.

The former high-flying HFZ Capital executive, charged with grand larceny, tax fraud and falsifying business records, had slicked back his hair and appeared heavier than when he entered Rikers. He sat quietly as his attorney, Oliver Storch, argued that Meir’s current bail of $5 million cash, $10 million insurance bond and $15 million partially secured bond is unreasonable. Storch suggested a bail of $250,000.

The Manhattan district attorney’s office alleges that Meir masterminded an $86 million criminal fraud scheme, but Storch stressed that Meir’s felonies were not violent. Real estate developers are hailed as heroes when things go well, “but as things go south, people start suing, then they run to the D.A.’s office,” he said.

At the heart of the allegation is HFZ’s condo project, the XI. The D.A. alleges Meir transferred $253 million over four years out of trusts designated for the XI into other accounts, which would be a violation of state law.

When he put the money back, there was a $37 million shortfall. To make up this shortfall, the D.A. alleges, Meir worked with the XI’s contractor, Omnibuild, to inflate costs reported to the lender. Omnibuild has pleaded not guilty to the allegations.

Meir has also been charged with defrauding the city out of $15 million in taxes. The D.A. alleges Meir directed HFZ accountants to start property tax payments but then cancel them before the money could be withdrawn.

In the most extreme example, Meir is accused of lying to investors about HFZ’s work on a project in San Francisco. Meir sent one investor updates about fictitious permits associated with the project and provided brochures detailing the fake cost estimates for every stage of the project, despite never having the development rights, according to the D.A.

Meir has pleaded not guilty to the charges. Storch pushed for Meir’s release from Rikers, infamous for its dangerous conditions.

Storch suggested Meir could participate in an alternative-to-incarceration program founded by Catholic prison chaplains in the South Bronx. Storch also said he found an apartment in Long Island that Meir could rent for between $1,800 and $2,000 a month. The landlord, Lenny DePaul, a former commander of the U.S. Marshal Fugitive Task Force, would ensure Meir would stay put, Storch argued.

Assistant District Attorney Christopher Beard opposed Meir’s request. He noted that the D.A.’s office had previously asked the court for no bail.

“The defendant shows that he has a loose connection to telling the truth,” said Beard. “Individuals who testified referred to him as a pathological liar.”

Beard brought up a series of lies Meir told the judge during his first court appearance in the case, in February. Meir said that he was the sole provider for his family, that he was working in New York at the time, and that he had not been evicted from his homes. Not one of those things was true, Beard said.

Beard said Meir gave no consideration to the investors who lost millions of dollars they put into HFZ Capital.

“There is simply nothing that has changed since February when he first appeared before this court that should give you any comfort on the bail conditions,” said Beard.

He said at minimum the D.A.’s office will ask for seven years of prison time for Meir.

Storch claimed Meir was not a flight risk, noting that he had three passports, one from France, the United States and Israel.

“He was in South Florida,” said Storch. “He could have gotten on a boat and gone anywhere. He was found exactly where he was supposed to be.”

Meir had switched hotels, which was used as justification for a higher bail amount set at the first hearing, but Storch said he was not trying to escape arrest. Meir had sent his address to the U.S. bankruptcy court, he said.

“Nir was not hiding,” his lawyer said.

“We ask the public to withhold judgment until the case is completed, until all the facts have been presented in the appropriate forum,” Storch said in a statement to The Real Deal.

But Judge Ann Thompson, presiding over the case, had heard enough to deem any proposal for Meir to live in Long Island or travel to Florida was off the table.

Thompson advised Storch to propose a legitimate bail package that included an explanation of where the funds would come from.

“I will tell you $250,000 is not happening,” Thompson said. “Do I think $15 million is appropriate? Maybe not.”