Trustee Files Action to Clawback Alleged Non-Debtor Loan Repay
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September 21, 2022, US Bankruptcy Court for Southern New York – Albert Togut, solely in his capacity as the Chapter 7 Trustee (the “Trustee”) of the estate of Kossoff PLLC (the “Debtor”) makes a complaint against Defendants World Global Fund LLC (“WGF”) and Tenantracers, LLC (“Tenantracers”) to avoid and recover alleged “fraudulent and preferential transfers” to and for the benefit of Defendants.
According to the complaint, Mitchell H. Kossoff (“Kossoff”) was a prominent real estate attorney in New York City before being disbarred and sent to prison on May 6, 2022, for stealing millions of dollars from the Debtor and dozens of the Debtor’s clients. Kossoff was allegedly the “sole managing member” of the Debtor and the founding and managing member of Tenantracers.
The Trustee claims that within four months prior to the bankruptcy filing of the Debtor, WGF had allegedly lent and advanced funds to Tenantracers and Kossoff had allegedly given a personal guarantee for its repayment. The Trustee alleges that Kossoff allegedly caused the loans to be repaid, in part, by alleged “direct and indirect transfers” from the Debtor’s bank accounts to and for the benefit of WGF. The alleged transfers to and for the benefit of Defendants allegedly neither conferred a benefit to the Debtor nor advanced any legitimate business purpose for the Debtor. Moreover, the Trustee claims that the alleged transfers allegedly reduced Kossoff’s personal financial liability to WGF.
The Trustee alleges that the alleged transfers allegedly “exacerbated” the Debtor’s insolvency and allegedly “perpetuated” a fraud on the Debtor’s creditors. The Trustee pleads to avoid and recover the Debtor’s alleged transfers to and for the benefit of Defendants as alleged “fraudulent conveyances” or, in the alternative, as alleged “preferential transfers”.
Albert Togut v. World Global Fund, LLC (In re Kossoff PLLC), AP No. 22-01148, US Bankruptcy Court for Southern District of New York