Tech entrepreneur Avishai Abrahami files third suit related to $30M loan to HFZ Capital

Avishai Abrahami, the Israeli tech entrepreneur who founded website design company Wix.com, filed his third law suit tied to a $30 million loan he made in 2020 to HFZ Capital Group as that company’s finances were crumbling.
This new suit, similar to a previous one in state court, alleges fraud on behalf of Nir Meir, but now adds Meir’s attorney from Holland & Knight. The prior state court suit targeted HFZ founder Ziel Feldman as well, but the new suit does not.

The $30 million loan was for an industrial portfolio with properties in New York, Wisconsin and Tennessee. HFZ Capital Group acquired an interest in the portfolio through a partnership with White Plains-based industrial investment firm Reich Brothers.  The new suit alleges Meir and the Holland & Knight attorney did not disclose that the loan would be secured by assets already used as collateral securing another loan.

According to the complaint, “Defendants failed to disclose, and actively concealed, the fact the Borrowers were, at the time Abrahami made his loan, in default on a $43 million loan that another lender, Monroe Capital (“Monroe”), had made in 2018 (the “Monroe Industrial Loan”). The Monroe Industrial Loan was made to the very same Borrowers as the Abrahami loan and was secured by a lien on “all assets” of the Borrowers. Defendants concealed all of this.”
Meir in the related cases has broadly denied the allegations. Court filings represent the positions of one party and are not necessarily accurate or complete.
PincusCo reported on a related suit from 2020, in which Monroe Capital sued HFZ and others.

The Real Deal reported in 2021 on one of Abrahami’s earlier lawsuits. case on . The other prior Abrahami lawsuits, according to the filing, are “a guaranty enforcement action captioned Abrahami v. Feldman & Meir, Index No. 652641/2021,  pending in New York County Supreme Court, and a legal malpractice action captioned Abrahami v. Meister Seelig & Fein LLP and Daniel J. Dwyer, Case No. 21-cv-10203 (AKH)(KHP),  pending in the United States District Court for the Southern District of New York.”

Case LINK