Trustee Wants Lawyer Jailed for Not Cooperating in Firm Bankruptcy

The chapter 7 trustee overseeing the dissolution of New York real estate law firm Kossoff PLLC asked a bankruptcy judge Tuesday to hold its founder in civil contempt and order him incarcerated if he continues defying court orders to cooperate. The trustee, Al Togut, also asked the judge in a separate motion Tuesday to compel the Manhattan district attorney’s office to turn over certain grand jury materials relating to its investigation of firm founder Mitchell Kossoff. The filings underline Togut’s mounting frustrations managing the estate of the Kossoff firm, which was forced into bankruptcy in May after creditors claimed it misappropriated more than $8 million from its escrow accounts. Kossoff’s refusal to comply with multiple court orders to produce records has “dramatically increased the administrative expense of this estate, which prejudices the interests of the victims of Kossoff’s fraudulent activity,” Togut wrote to U.S. Bankruptcy Judge David Jones.

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