JPMorgan Aided Ex-Atty Kossoff's $18.5M Theft

JPMorgan Chase is facing an $18.5 million liability in bankruptcy court after being accused of facilitating the misappropriation of client funds.

The U.S. Bankruptcy Court entered a complaint by the Chapter 7 trustee of Kossoff PLLC against JPMorgan Chase Bank NA on September 10, 2026, alleging that the bank enabled the transfers by failing to detect irregularities.

The trustee discovered that former attorney Michael Kossoff diverted client assets while operating his firm and alleges that the bank's oversight failures allowed him to move $18.5 million without detection.