Guilty plea could speed trustee's work in Kossoff law firm bankruptcy - Reuters

A plaque is displayed at the entrance of the U.S. District Bankruptcy Court for the Southern District of New York in Manhattan, New York. REUTERS/Brendan McDermid

• Manhattan D.A. says Kossoff took over $14.6 mln from clients
• Kossoff says his firm owes more than $28 million to former clients, other creditors
• Kossoff, 68, will be sentenced in April after guilty plea

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(Reuters) - Shuttered New York real estate law firm Kossoff PLLC owes more than $28 million to its former clients and other creditors, its founder Mitchell Kossoff told a Manhattan bankruptcy court this week. But that may be understating the firm's liabilities, the trustee overseeing its liquidation said Friday.

Kossoff pleaded guilty Monday to grand larceny and other charges after prosecutors accused him of misappropriating more than $14 million in client funds. He estimated in bankruptcy court papers filed Wednesday that the firm owes creditors twice that amount.

Al Togut, the Chapter 7 trustee overseeing the dissolution of Kossoff PLLC, said in an email Friday that Kossoff's accounting is "dated and incomplete." Togut has been seeking records seized from the firm by the Manhattan district attorney's office in its investigation, which he argues he needs for a fuller picture.

Now he's closer to obtaining those documents. Togut's attorney told U.S. Bankruptcy Judge David Jones that the district attorney has obtained a court order allowing it to share Kossoff PLLC records with the trustee.

Togut said in a Friday email that he will have access to the records soon and expects to take possession of them once Kossoff is sentenced in April.

"I’ve been trying to do my job for six months without those records. I have had no cooperation. I've had to fight for everything that I’ve gotten," Togut said.

Kossoff, 68, could serve a prison term of 4-1/2 to 13-1/2 years, Manhattan District Attorney Cyrus Vance said in a statement.

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source: https://www.reuters.com/legal/legalindustry/guilty-plea-could-speed-trustees-work-kossoff-law-firm-bankruptcy-2021-12-17/

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