An admission of guilt could expedite the trustee’s work on the Kossoff law firm’s bankruptcy

A plaque is posted at the entrance to the US District Bankruptcy Court for the Southern District of New York in Manhattan, New York. REUTERS / Brendan McDermid

(Reuters) – New York closed real estate firm Kossoff PLLC owes more than $ 28 million to its former clients and other creditors, its founder Mitchell Kossoff told a bankruptcy court in Manhattan this week. But that could underestimate the company’s liabilities, the trustee overseeing its liquidation said Friday.

Kossoff pleaded guilty to aggravated theft and other charges Monday after prosecutors accused him of misappropriating more than $ 14 million in customer funds. He estimated in bankruptcy court papers filed Wednesday that the company owed creditors twice that amount.

Al Togut, the Chapter 7 trustee overseeing the liquidation of Kossoff PLLC, said in an email Friday that Kossoff’s bookkeeping was “dated and incomplete”. Togut has been looking for documents that the Manhattan prosecutor had seized as part of their investigation from the law firm and that he needs for a more complete picture.

Now he is closer to receiving these documents. Togut’s lawyer told US bankruptcy judge David Jones that the district attorney has received an injunction allowing him to share Kossoff PLLC’s records with the trustee.

Togut said in an email on Friday that he will have access to the records soon and expects to get hold of them once Kossoff is convicted in April.

“I tried to do my job for six months without these records. I had no cooperation. I had to fight for everything I got,” said Togut.

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

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NY real estate attorney indicted in theft of millions pleads guilty

NY real estate attorney Kossoff pleads guilty, says Manhattan DA

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