Trustee wants New York lawyer jailed for failing to cooperate with company bankruptcy



Signage is seen in the United States Bankruptcy Court for the Southern District of New York in Manhattan, New York, United States, August 24, 2020. REUTERS / Andrew Kelly

  • Kossoff administrator also asks judge to compel Manhattan DA to turn over files
  • The trustee struggled for months to get the files from the law firm

(Reuters) – Chapter 7 administrator overseeing breakup of New York real estate law firm Kossoff PLLC demand a bankruptcy judge on Tuesday to hold its founder in civil contempt and order him to jail if he continues to defy court orders to cooperate.

The trustee, Al Togut, also asked the judge in a separate movement Tuesday to compel the Manhattan District Attorney’s Office to turn over certain grand jury documents relating to its investigation into company founder Mitchell Kossoff.

The files highlight Togut’s growing frustrations in handling the estate of the Kossoff company, which was forced into bankruptcy in May after creditors claimed it embezzled more than $ 8 million from its escrow accounts.

Kossoff’s refusal to comply with several court orders to produce records has “considerably increased the administrative expenses of this estate, which is detrimental to the interests of the victims of Kossoff’s fraudulent activity,” Togut wrote to the US bankruptcy judge. David Jones.

Togut declined to comment on Tuesday.

Mitchell Kossoff, once a fixture in the legal real estate market in New York, has argued that he will waive his right against self-incrimination if he hands over firm cases to Togut, adding that he will cooperate if he does. he enjoyed immunity from prosecution. Jones rejected that position in July, and a federal judge in Manhattan dismissed Kossoff’s appeal on the case on September 30.

Togut said Jones can “enforce the terms of a civil contempt order by ordering the incarceration of the party who does not comply with a legal order.” Financial sanctions won’t work, given Kossoff’s apparent inability to afford bankruptcy attorney, Togut added.

Walter Mack, a criminal defense attorney for Kossoff, did not respond to a request for comment.

Mack said Kossoff was under investigation by the Manhattan district attorney. The district attorney has records that are “essential” to Togut’s administration of the Kossoff company estate, but he “turned a deaf ear,” Togut wrote.

“The trustee only asks for copies of the debtor’s internal business documents. The trustee’s request is not about obtaining explosive testimony,” Togut added.

A spokesperson for the Manhattan district attorney declined to comment.

The case is In re Kossoff PLLC, U.S. Bankruptcy Court for the Southern District of New York, No. 21-10699.

For Togut: Neil Berger, Brian Shaughnessy and Minta Nester of Togut, Segal & Segal

For Kossoff: Walter Mack de Doar Rieck Kaley & Mack

Read more:

Document struggle complicates Kossoff law firm bankruptcy

Besieged real estate lawyer Kossoff can’t protect bankrupt doctors



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