Shuttered New York real estate law firm Kossoff PLLC owes more than $28 million to its former clients and other creditors, its founder Mitchell Kossoff told a Manhattan bankruptcy court this week. But that may be understating the firm's liabilities, the trustee overseeing its liquidation said on Friday, Reuters reported. Kossoff pleaded guilty on Dec. 13 to grand larceny and other charges after prosecutors accused him of misappropriating more than $14 million in client funds. He estimated in bankruptcy court papers filed Wednesday that the firm owes creditors twice that amount. Al Togut, the chapter 7 trustee overseeing the dissolution of Kossoff PLLC, said in an email on Friday that Kossoff's accounting is "dated and incomplete." Togut has been seeking records seized from the firm by the Manhattan district attorney's office in its investigation, which he argues he needs for a fuller picture. Now he's closer to obtaining those documents. Togut's attorney told U.S. Bankruptcy Judge David Jones that the district attorney has obtained a court order allowing it to share Kossoff PLLC records with the trustee. Togut said in a Friday email that he will have access to the records soon and expects to take possession of them once Kossoff is sentenced in April. Kossoff could serve a prison term of 4-1/2 to 13-1/2 years, Manhattan District Attorney Cyrus Vance said in a statement.
