Judge Freezes Mitch Kossoff Accounts as Clients Push to Force Him Into Bankruptcy
A judge has frozen missing real estate lawyer Mitchell Kossoff’s mostly empty bank accounts as a group of landlords are pushing to force him into bankruptcy over missing escrow funds.
Manhattan Supreme Court Justice Jennifer Schecter froze three accounts tied to Kossoff’s eponymous law firm on Tuesday after clients accused him of running off with millions from their escrow accounts, Crain’s New York Business reported.
Kossoff’s accounts, however, only have about $120,000 left in them, according to Crain’s.
Representatives for Kossoff’s firm did not immediately respond to requests for comments.
The judge freezing Kossoff’s accounts comes as four landlords filed an involuntary bankruptcy petition against Kossoff accusing him of disappearing with $8 million in escrow funds, court records show.
The clients include Gran Sabana Corporation, United American Land, Thomas Sneva, and Louis and Jeanmarie Giordano. Their lawyer, Aaron Cahn, declined to comment.
Earlier this week, reports surfaced that clients and partners at Kossoff’s law firm have been unable to reach him for “several days” while he was hit with a string of lawsuits for missing escrow accounts. The Manhattan district attorney reportedly launched an investigation into Kossoff to see if he misused clients’ funds.