Kossoff, Real Estate Attorney Accused Of Disappearing With Clients' Money, Disbarred In New York

Mitch Kossoff, a partner at Kossoff PLLC who prosecutors say stole millions of his clients' money, has been disbarred from practicing law in New York.

Kossoff was charged with grand larceny and agreed to plead guilty in December, admitting to stealing over $14.6M from his clients in a scheme that ran for more than four years. Kossoff did not respond to the New York appellate court’s attorney grievance committee’s motion to disbar him, Reuters reports. His attorney said Kossoff had already offered his resignation from the bar a year ago.

He disappeared with the money and could not be contacted last April, but appeared before a Manhattan Criminal Court judge in December. Prosecutors said Kossoff misappropriated the funds for personal expenses and his family business, including running up an average of $16K per month on his credit card and $19K on an apartment in Manhattan.

He was released with travel restrictions and surrendered his passport. He would face up to 25 years in prison if convicted following a trial. He is set to be sentenced this month, and could face four-and-a-half to 13-and-a-half years, Reuters reports.

Kossoff's clients have included Larry Gluck and the infamous Steve Croman, but he was said to have cut off all contact with those he represented in April last year, The Real Deal reported at the time. A New York judge froze several accounts linked to Kossoff as a result.

Kossoff PLLC went bankrupt after four clients sued the firm, claiming they were collectively owed $8M.