NY real estate lawyer Kossoff gets up to 13.5 years for theft of client funds

An vacant courtroom is viewed at the New York Point out Supreme Court in Manhattan, New York Metropolis, U.S., August 21, 2020. REUTERS/Andrew Kelly

(Reuters) – Mitchell Kossoff, the outstanding New York real estate lawyer accused of emptying a lot more than $14.6 million out of accounts holding clients’ cash, was sentenced in Manhattan condition court docket Friday to in between 4.5 and 13.5 several years in jail.

The Manhattan district attorney’s place of work confirmed the sentence and claimed Kossoff, 68, who was billed and pleaded guilty to 1 count of fraud and a few counts of grand larceny, must repay the much more than $14.6 million he took.

Kossoff’s attorney referred to as the sentence “just” and explained Kossoff informed the court he will devote his remaining lifetime to remedying destruction induced by his behavior.

His sentence was in line with the advice in his December 2021 plea arrangement.

According to prosecutors, from 2017 to 2021, Kossoff stole escrow money from at the very least 35 of the shoppers from his now-shuttered law organization Kossoff PLLC.

Prosecutors mentioned Kossoff usually utilised dollars from a single consumer to shell out off one more.

He allegedly emptied $2.425 million in resources that belonged to customer 118 Duane LLC, $241,966 that belonged to Ambassador Hotel LLC and all but $56,584 in escrow money belonging to Irwin Ostrega.

His business, which was pressured into personal bankruptcy in Might 2021, owes far more than $28 million to its previous clientele and other collectors. These individual bankruptcy proceedings are ongoing.

Kossoff was disbarred in March of this yr and he has also surrendered a condominium in Highlands, New Jersey, according to the Manhattan district attorney’s business office.

“His steps betray the standards that we as legal professionals are taught from the quite beginning of our occupations and will not be tolerated,” reported District Attorney Alvin Bragg in a statement Friday.

The situation is New York v. Mitchell Kossoff, New York Supreme Court docket, No. SCI-71214-21.

For New York: Assistant District Lawyers Ryan Gee and Catherine McCaw

For Kossoff: Walter Mack of Doar Rieck Kaley & Mack

Study More:

Guilty plea could pace trustee’s perform in Kossoff legislation business individual bankruptcy

N.Y. real estate lawyer stole thousands and thousands from purchasers, Manhattan D.A. fees

Embattled real estate lawyer Kossoff battles trustee more than information

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