A bankruptcy judge threatened to jail a Manhattan real estate lawyer if he doesn’t promptly provide a list of creditors and detailed financial information about his failed law firm and the $17 million it allegedly owes its clients, WSJ Pro Bankruptcy reported. Judge David Jones of the U.S. Bankruptcy Court in Manhattan said anything short of incarceration wouldn’t be enough to ensure that lawyer Mitchell Kossoff produce details on assets, contracts and leases at his law firm that would make it possible to hold a meeting of creditors. Earlier this month, the trustee liquidating Mr. Kossoff’s namesake law firm asked that Mr. Kossoff be held in civil contempt for violating disclosure orders to provide a client list and schedules. On Tuesday, the judge did so. Allowing more time and “wrangling” between Mr. Kossoff and the trustee is unlikely to be successful in securing his compliance, the judge said. Judge Jones cited an “extensive pattern of delay” by Mr. Kossoff, who is the subject of a criminal investigation by the Manhattan district attorney’s office. The judge said he didn’t envision issuing an order for Mr. Kossoff’s arrest for at least seven days. “I hope he is never incarcerated,” Judge Jones said. “I hope he complies with the court order.”
