A New York real estate lawyer who has been accused by creditors of misusing client funds has reached a plea agreement with prosecutors and will surrender for arrest next month, the Manhattan district attorney's office told a federal bankruptcy judge on yesterday, Reuters reported. In a letter to U.S. Bankruptcy Judge David Jones, prosecutors said they expect attorney Mitchell Kossoff to surrender on or about Dec. 3 and to enter a guilty plea a week later. The letter did not specify the criminal charges or include details about Kossoff's plea. Kossoff PLLC was forced into bankruptcy in May after creditors claimed Kossoff, once a fixture in the New York real estate scene, misappropriated more than $8 million from the law firm's escrow accounts. A lawyer for Kossoff, Walter Mack, declined to comment. Mack has said Kossoff would cooperate in the bankruptcy proceedings if he is granted immunity from prosecution. Kossoff has not responded directly to his creditors' claims in bankruptcy court. The DA's letter asked Jones to extend its deadline to respond to Al Togut, the chapter 7 trustee overseeing the dissolution of Kossoff PLLC. Togut is seeking grand jury materials relating to prosecutors' investigation of Kossoff and asked Jones to force the district attorney to turn them over. Once Kossoff has entered his guilty plea, the grand jury's investigation will be complete, rendering the dispute moot, prosecutors said. The office will seek a court order allowing materials to be shared with Togut, the letter added.
