Mitchell Kossoff allegedly forged his mother’s signature
This has to be the worst Mother’s Day gift ever.
Real estate attorney Mitchell Kossoff allegedly forged his 94-year-old mother’s signature to take out more than $2 million in loans before going on absenteeism earlier this month.
Kossoff, who went quiet in early April when customers started asking about their escrow accounts, withdrew $2.6 million in August and January in merchant cash advances — essentially a kind of payday loan from business where a business sells its future earnings in exchange for up-front cash. Kossoff agreed to repay $3.7 million, according to a lawsuit filed two weeks ago by the finance company.
Loan documents show Kossoff’s signatures and one believed to be that of his mother, Phyllis Kossoff. So when the lawyer failed to honor the financing agreement, the lender sued his son and mother.
Phyllis, however, claims her son forged her signature and only dropped the bomb on her last week that “there are ‘certain documents’ that had her signature ‘but she didn’t sign'” “, according to court documents the mother filed Thursday.
“As unbelievable as it may seem. . . it is apparent that Mitchell Kossoff forged her mother’s signature in order to obtain millions of dollars from the defendants for the benefit of herself and her businesses,” Phyllis’ attorneys wrote in a motion seeking an injunction to restrain the lender from sue her for the fund.
Phyllis Kossoff’s attorney declined to comment further. Mitchell Kossoff could not be reached for comment.
News that Mitchell spoke to his mother – a wealthy philanthropist who helped found the Cystic Fibrosis Foundation – just last week is the first public clue to his whereabouts since he disappeared off the map. about three weeks ago.
Kossoff held cash in escrow for his real estate clients and many feared he stole the money. His law firm has essentially closed, and several of his clients are trying to force the company into bankruptcy.
Kossoff has until next week to respond to the bankruptcy filing. If he doesn’t, the judge will appoint a receiver to guide the bankruptcy process.
The Manhattan District Attorney’s Office is reportedly investigating allegations that Kossoff misused his clients’ funds. Kossoff reportedly retains a criminal defense attorney to represent him should he face charges.