Disbarred Attorney Mitch Kossoff Released From Prison
The former New York lawyer served over four years after pleading guilty to grand larceny charges in 2021.
Updated on Oct. 30, 2026 in Financial Crime
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Disbarred attorney Mitch Kossoff was released from prison on parole in September 2026 after serving over four years. Kossoff previously pleaded guilty to grand larceny and fraud charges related to the theft of over $14 million from client escrow accounts.
Why it matters
Kossoff misappropriated millions in client funds to support his struggling business ventures, an act that led to his 2022 disbarment. His case remains notable for the significant financial impact on his clients and subsequent legal challenges regarding the recovery of stolen assets.
Kossoff was released on parole in September 2026 after receiving an original sentence of 4.5 to 13.5 years. He now serves as an administrative assistant at a detective agency following his 2021 guilty plea to three counts of grand larceny.
The players
Mitch Kossoff
He is a former attorney who was disbarred after stealing over $14 million from his own clients to fund failed businesses.
JPMorgan Chase
This major financial institution was sued for $18.5 million by a trustee seeking to recover funds lost in the Kossoff case.
The Lawyer's Fund for Client Protection
This organization is responsible for reimbursing clients who suffer financial losses due to the dishonest conduct of New York attorneys.
The details
Prosecutors noted that Kossoff used client funds to sustain personal lifestyle expenses, including $19,000 in monthly rent and $16,000 in monthly credit card bills. While victims were eventually reimbursed by The Lawyer's Fund for Client Protection, the collapse of his firm in 2021 marked a significant breach of professional trust in New York.
Timeline
2008: Kossoff's various business ventures began to experience financial failure.
2011-2012: The period when Kossoff began misappropriating funds from his clients' escrow accounts.
2021: Kossoff's law firm collapsed and he entered a guilty plea for grand larceny.
2022: Mitch Kossoff was formally disbarred from the practice of law.
September 2026: Kossoff was released from the Groveland Correctional Facility on parole.
Legal Context
This case highlights the strict regulatory environment governing attorney escrow accounts under New York's rules of professional conduct for attorneys. It serves as a reminder of the severe legal consequences for those who violate fiduciary duties in the state's legal system.
The release of Kossoff on parole may prompt local questions regarding the supervision of convicted white-collar criminals in New York City. Residents and former clients are also affected by the ongoing litigation surrounding the recovery of escrow funds.
The takeaway
The Kossoff case demonstrates the high risks involved when legal professionals commingle client assets with personal business ventures. Experts suggest that regular independent audits of escrow accounts remain the most effective tool for preventing similar large-scale financial losses.
Further reading
For more information on legal accountability, visit the Financial Crime section.
Source note: This article includes information reported by The Real Deal New York.
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