Mark Nussbaum Shuts Down Law firm

 

The abrupt shuttering comes amid allegations the lawyer, known as a go-to attorney for Lakewood & Brooklyn real estate investors, refused to hand over escrow funds. And filings obtained by The Real Deal show previously unreported links between the Nussbaum Lowinger LLP founder & late Borough Park investor Mendel Steiner.

Steiner died last week at age 33 sending shockwaves through the close-knit Orthodox Jewish community. Steiner in his brief real estate career amassed 1000s of apts throughout the country.

Steiner struggled in recent years financially & faced at least one foreclosure in Florida where he took on a high-interest loan.

Rumors took off about Steiner’s sudden death. The Promote newsletter wrote that a lawsuit filed last week against Nussbaum was “important context to understand Steiner,” citing community sources.

“It has been a pleasure & privilege to work with you & serve as your counsel over the years,” said Nussbaum in an email to clients. “I value the connections we made & relationships we formed & justifiably proud of transactions we consummated & closed together.”

Nussbaum said the firm retained counsel, Ethan Kobre of Schwartz Sladkus Reich Greenberg Atlas, to represent it in the wind-down. Anyone who had funds in the firm’s escrow account can contact Kobre, according to the email.

Scandalous conspiracy theories

The lawsuit filed in Rockland County by an entity connected to nursing home manager Jacob Sod alleges Nussbaum failed to hand over $15 million in escrow. The lender alleges the money was used by Nussbaum to “show capital” to evidence purchasing power.

“Mr. Nussbaum prefers not to comment on ongoing litigation,” said Kobre in a statement to TRD.

Nussbaum responded this week to the lawsuit arguing the plaintiff is suing the wrong party. His response suggests the proper party is the borrower, a Delaware company Georgetown Residents. Nussbaum was just the person who acted as signatory on documents, according to his filing.

Nussbaum called Sod’s complaint a “confused mess of scandalous conspiracy theories” in his legal filing.

TRD found that Georgetown Residents LLC has a direct tie to Steiner by digging through corporate records & lawsuits. Georgetown Residents’ Borough Park business address is used by Aven Realty. Florida records list Steiner as the authorized person for Aven.

Aven is one firm used by Steiner’s real estate ventures. Georgetown Residents LLC is tied to a rental property in Lafayette, Indiana, owned by Steiner.

The full connection between Steiner & Nussbaum is unclear. According to Nussbaum’s response to the lawsuit, Steiner-linked Georgetown Residents were the recipients of the $15 million. The purpose of the loan was for “transacting business.”

Nussbaum alleges his law firms, Nussbaum Lowinger & Mark J. Nussbaum Associates, have no obligations under the loan documents.

Nussbaum’s name appeared in deals with dealmakers such as Shaya Prager’s Opal Holdings, Joel Schreiber, Moshe Silber & Yoel Goldman.

Nussbaum is battling another lawsuit in NY Supreme Court alleging his firm, Nussbaum Lowinger, hindered collection of a judgment in Florida. He has not yet responded to that lawsuit.

Mark Nussbaum refuses to hand over escrow money, lawsuit claims

 

​Below the previous article 

Attorney who plays an unusual role in Lakewood, NJ real estate hit with two lawsuits for his escrow account business

Mark Nussbaum Sued Over Escrow Accounts
Mark Nussbaum, a go-to attorney for Lakewood, New Jersey, and Brooklyn real estate investors, is facing two lawsuits related to his dealings with escrow accounts.

The lawsuits provide more insight into Nussbaum’s unique role in real estate. The attorney’s name has shown up in acquisitions, plans, and loans, involving embattled dealmakers such as Shaya Prager’s Opal Holdings, Joel Schreiber, Moshe Silber, and Yoel Goldman.

Nussbaum often holds money in escrow accounts and then lends the money out as bridge loans, according to sources familiar with the matter. He then collects a point or two of interest on the loans.

Two civil lawsuits filed this week in New York State Supreme Court suggest that Nussbaum is facing issues with his escrow business. Both lawsuits were filed this week within a day of each other and are seeking to collect millions from Nussbaum.

Nussbaum did not return a request to comment.

Show time

In one lawsuit, Crestview 360 Holdings is looking to collect $15 million.

Nussbaum sought financing from Crestview in the form of “show capital” to evidence purchasing power, according to the lawsuit.

Crestview alleges it loaned Nussbaum $15 million because of the relationship between the two parties on the condition that the funds sit in an escrow account. But Nussbaum failed to return the money by the required date.

Crestview alleges Nussbaum and his law firms — Nussbaum Lowinger and Mark J. Nussbaum — failed to maintain sufficient account balances to satisfy their obligations as an escrow agent. It further alleges Nussbaum frequently transfers funds between the accounts to satisfy balance requirements or “for some other reason.”

Crestview, which Florida corporate records show ties to Jacob Sod of Lawrence, New York, is seeking a court injunction to restrain Nussbaum from withdrawing or disbursing any funds from any checking, escrow or operating account.

Wires crossed

Another lawsuit filed on Thursday is more convoluted.

The entity Mount Dora is suing Nussbaum Lowinger over fraudulent transfers allegedly made to prevent it from collecting on a judgment.

In 2022, Mount Dora was awarded a $6.15 million judgment against Timothy Majors and Hobart Investments in Florida. The entity has been seeking to collect on that $2.9 million from that judgment.

The lawsuit alleges Majors was involved in the sale of properties in Bradenton and Daytona Beach, Florida, to Dr. Harry Nyanteh and an affiliate of Lakewood investor Chaim Bialostozky in 2022.

Nussbaum initially provided escrow services for Nyanteh.

Nyanteh and his affiliates showed the escrow money to mortgage lenders as proof of funds for a down payment so he could buy the Florida properties, the lawsuit alleges.

In August of 2022, Nussbaum allegedly wired over $1.3 million in funds to Lakewood-based title company, Iconic Title, to fund Nyanteh’s down payment.

But the proceeds of the sale between Nyanteh and Majors were diverted to another Lakewood business instead of going to Majors.

According to the lawsuit, Iconic sent money to Keystone Direct Funding, an entity owned by Pearl Stendig. Iconic’s Yossi Rzepkowicz allegedly assisted in that transaction.

Stendig then diverted over $1 million million back to Nussbaum, according to the lawsuit.

Mount Dora claims Nussbaum, Majors and Bialostozky, worked to conceal the disbursement of proceeds on this transaction because Mount Dora had an outstanding judgment