Mark Nussbaum Sued Over Escrow Accounts

Mark Nussbaum, a go-to attorney for Lakewood, New Jersey, and Brooklyn real estate investors, is facing two lawsuits related to his dealings with escrow accounts.

The lawsuits provide more insight into Nussbaum’s unique role in real estate. The attorney’s name has shown up in acquisitions, plans, and loans, involving embattled dealmakers such as Shaya Prager’s Opal Holdings, Joel Schreiber, Moshe Silber, and Yoel Goldman.

Nussbaum often holds money in escrow accounts and then lends the money out as bridge loans, according to sources familiar with the matter. He then collects a point or two of interest on the loans.

Two civil lawsuits filed this week in New York State Supreme Court suggest that Nussbaum is facing issues with his escrow business. Both lawsuits were filed this week within a day of each other and are seeking to collect millions from Nussbaum.

Nussbaum did not return a request to comment.

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In one lawsuit, Crestview 360 Holdings is looking to collect $15 million.

Nussbaum sought financing from Crestview in the form of “show capital” to evidence purchasing power, according to the lawsuit.

Crestview alleges it loaned Nussbaum $15 million because of the relationship between the two parties on the condition that the funds sit in an escrow account. But Nussbaum failed to return the money by the required date.

Crestview alleges Nussbaum and his law firms — Nussbaum Lowinger and Mark J. Nussbaum — failed to maintain sufficient account balances to satisfy their obligations as an escrow agent. It further alleges Nussbaum frequently transfers funds between the accounts to satisfy balance requirements or “for some other reason.”

Crestview, which Florida corporate records show ties to Jacob Sod of Lawrence, New York, is seeking a court injunction to restrain Nussbaum from withdrawing or disbursing any funds from any checking, escrow or operating account.

Wires crossed

Another lawsuit filed on Thursday is more convoluted.

The entity Mount Dora is suing Nussbaum Lowinger over fraudulent transfers allegedly made to prevent it from collecting on a judgment.

In 2022, Mount Dora was awarded a $6.15 million judgment against Timothy Majors and Hobart Investments in Florida. The entity has been seeking to collect on that $2.9 million from that judgment.

The lawsuit alleges Majors was involved in the sale of properties in Bradenton and Daytona Beach, Florida, to Dr. Harry Nyanteh and an affiliate of Lakewood investor Chaim Bialostozky in 2022.

Nussbaum initially provided escrow services for Nyanteh.

Nyanteh and his affiliates showed the escrow money to mortgage lenders as proof of funds for a down payment so he could buy the Florida properties, the lawsuit alleges.

In August of 2022, Nussbaum allegedly wired over $1.3 million in funds to Lakewood-based title company, Iconic Title, to fund Nyanteh’s down payment.

But the proceeds of the sale between Nyanteh and Majors were diverted to another Lakewood business instead of going to Majors.

According to the lawsuit, Iconic sent money to Keystone Direct Funding, an entity owned by Pearl Stendig. Iconic’s Yossi Rzepkowicz allegedly assisted in that transaction.

Stendig then diverted over $1 million million back to Nussbaum, according to the lawsuit.

Mount Dora claims Nussbaum, Majors and Bialostozky, worked to conceal the disbursement of proceeds on this transaction because Mount Dora had an outstanding judgment.