JPMorgan Sued Over Alleged Role in Disbarred Lawyer's Client-Fund Theft

A trustee has filed a lawsuit against JPMorgan Chase, accusing the bank of enabling disbarred lawyer Mitchell Kossoff to steal nearly $20 million from client accounts.

The trustee, Albert Togut, oversees the bankruptcy of Kossoff's law firm and alleges that JPMorgan knew about Kossoff's misuse of client funds but failed to intervene.

Togut claims that the bank should have reported a bounced check from one of Kossoff's client accounts in 2015, which would have triggered an investigation into the attorney's misconduct.

Kossoff was convicted of fraud and grand larceny in December 2021 and is serving up to 13.5 years in prison for misappropriating over $14.6 million from at least 35 people and companies.