Judge Freezes Account Of Real Estate Lawyer Who Disappeared With Clients’ Millions

Weeks after the disappearance of a prominent Manhattan real estate attorney, his clients are still trying to find millions of dollars he kept in escrow for them.

This week, a New York judge frozen several accounts associated with Mitch Kossoff, managing partner of Kossoff PLLC, Crains New York Business reported. Kossoff disappeared sometime in late March. After that, his clients started filing lawsuits against him in an attempt to win their money back, The Real Deal reported last week.

Four of his clients, who claim he misused a total of $ 8 million, asked the New York bankruptcy court to drive Kossoff’s company into involuntary bankruptcy, The Real Deal reported Tuesday.

Three of the company’s bank accounts that New York State Supreme Court Justice Jennifer Schecter put aside at a hearing earlier this week left around $ 112,000, just a fraction of the estimated $ 5 million he got Customer owed, reports Crain.

SMS Realty, alleging the attorney owed him $ 1.3 million, and 537 Associates, alleging Kossoff owes $ 440,000 and $ 2.59 million in damages, were among the attorney’s clients to take him to court. Six lawsuits have been filed so far, according to Crain.

A lawyer representing Prince Street Holdings, another landlord suing Kossoff, said, “I don’t think anyone on that call would be surprised to hear that.”

The case caught the attention of the city’s chief prosecutor. Manhattan District Attorney Cyrus Vance opened an investigation into whether the attorney mishandled his clients’ money, Commercial Observer reported.