Feds investigating AWOL real estate attorney

U.S. prosecutors in Brooklyn have opened a case on Mitchell Kossoff

Attorney Mitchell Kassoff, in photo at far right, is now being investigated by federal authorities along with the Manhattan District Attorney's Office. Walter Mack, his lawyer, is pictured at top left. (Getty, Doar Law)
Attorney Mitchell Kassoff, in photo at far right, is now being investigated by federal authorities along with the Manhattan District Attorney's Office. Walter Mack, his lawyer, is pictured at top left. (Getty, Doar Law)

Federal prosecutors are now investigating real estate attorney Mitchell Kossoff, who went AWOL in April with millions of his clients’ dollars missing.

The U.S. Attorney’s Office for the Eastern District of New York is investigating the missing lawyer, Law360 reported.

Kossoff’s criminal defense attorney, Walter Mack, alluded to the investigation during a bankruptcy hearing for his law practice Thursday.

During a hearing regarding an emergency order to protect documents related to the firm, Mack said he had no objection, adding that the documents were already covered by a grand jury subpoena from the Eastern District, as well as the Manhattan District Attorney’s office.

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“They are the ones who I deal with on a direct basis, very frequently per week, and there will be developments there,” he said.

Kossoff, who represented some of the city’s largest landlords, dropped off the radar earlier this year and stopped responding to clients’ requests to return their escrow funds. His clients allege that nearly $10 million is unaccounted for. Kossoff also allegedly forged his 94-year-old mother’s signature to take out more than $2 million in loans before going AWOL.

Mack has said that he is in contact with Kossoff, though the real estate attorney has yet to give an explanation for his disappearance or the status of his clients’ money.

Mack told the bankruptcy judge that Kossoff plans to invoke his Fifth Amendment rights in the bankruptcy case.

[Law360] – Rich Bockmann