NEW YORK -- Manhattan District Attorney Robert Morgenthau announced that he has arrested and indicted highflying real-estate investor Adam Hochfelder for allegedly "stealing more than $17 million from a panoply of banks and individuals."

Mr. Hochfelder, who dazzled the New York real-estate industry in the late 1990s, when he could buy trophy properties less than 10 years out of college, was charged with grand larceny, forgery, falsifying business records and other crimes. The most serious charge, grand larceny, is punishable by as many as 25 years in prison.

Mr. Hochfelder and his attorney, Paul Goldberger, didn't return calls seeking comment.

Mr. Hochfelder, now 37, was chairman and chief executive of Max Capital Management Corp., which bought numerous properties, including 230 Park Ave. the office tower that straddles Park Avenue and was formerly owned by real-estate legend Harry Helmsley. Mr. Hochfelder built a portfolio that, he claimed, was worth about $2.7 billion.

But about four years ago, Mr. Hochfelder began defaulting on loans and became the subject of lawsuits by former business associates and family members.

The crimes charged in Mr. Morgenthau's indictment allegedly occurred between October 2002 and February 2008. The indictment charges that Mr. Hochfelder borrowed $17 million from partners, family members, friends and banks by misrepresenting the value of his personal and professional holdings. He also allegedly provided North Fork Bancorporation and Bank of America Corp. forged documents inflating his liquidity and assets.

Write to Peter Grant at peter.grant@wsj.com

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