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Sometimes there's the chance for a comeback following a spectacular fall from grace. That doesn't look like a likely scenario for Adam Hochfelder. The erstwhile property mogul, who once controlled as much as 8 million square feet of property as part of his company Max Capital, counted billionaires Richard Kalikow and Robert Bass as partners, and was a social fixture around town, was arrested yesterday on charges of grand larceny and forgery. According to the Manhattan DA, the 37-year-old stole more than $17 million from banks and family members, money he used to pay off debts and for personal expenses.

For several years, Hochfelder had a rep as an especially brash player on the already-brash real estate scene. When the Observer visited him at his office in 2003, he was chatting with Donald Trump and discussing his dream of bringing NASCAR to New York City. A long list of real estate heavyweights offered up praise, including Barry Gosin, who helped him start his career, and former development czar Dan Doctoroff. "To amass a portfolio as large as he has, at such a young age—it's almost unfair. It's mind-boggling that he's so young and he has somany things going for him," a former partner, Peter Riguardi, told the paper at the time.

It seems the pieces first began to crumble for Hochfelder in 2004 when he defaulted on several loans and got into a series of disputes with several business associates. Apparently it was then that he started deceiving banks and family members, borrowing money with the assurance he was going to use the cash to buy foreclosed brownstones, but in fact spending the money on personal expenses and debts.

Hochfelder has an alternate storyline to explain his indictment: He wasn't actually caught, according to his lawyer, but began fessing up to the authorities four years ago, when his "conscience" led him to the district attorney's office. And how did he get away with the scheme? As Richard Kalikow put it, "He's an exceptionally charming guy and he had a great ability to raise money from anybody."

Arrest Furthers a Real Estate Star's Fall [NY Sun]
Real estate titan nabbed in 17M scam [NYDN]
Power Punk: Adam Hochfelder [NYO]