Two Rockland firms that dealt in hundreds of millions of dollars in real estate and lending deals have filed for bankruptcy protection.
Mark J. Nussbaum and Associates PLLC and Nussbaum Lowinger LLP, of Suffern, filed for Chapter 11 reorganization on April 16 in U.S. Bankruptcy Court, White Plains.
“Although the debtors were formed for the purpose of proving legal services,” chief restructuring officer Ephraim Diamond states in an affidavit, “the debtors engaged in a number of other lines of business that ultimately resulted in … bankruptcy.”
Mark J. Nussbaum is sole member of Mark J. Nussbaum and Associates, founded in 2016. In 2021, he and Samuel Lowinger founded Nussbaum Lowinger LLP, and last year Lowinger withdrew from the partnership.
Initially, Nussbaum provided legal services for clients in real estate and other businesses. Eventually, his firms made high-interest “hard money loans” where regular financing was not available; liquidity enhancement loans; and short-term bridge loans.
The funding itself was based on loans from providers who were promised  substantial returns for the use of their money, according to Diamond, founder of Arbel Capital Advisors, a crisis management firm in Lawrence, Nassau County. For years, the strategy worked: hundreds of millions of dollars were loaned and the interest and the principal were repaid.
But by 2022, most of the funds flowing into Nussbaum’s accounts were supporting one client, Diamond says, and the client was unable to repay the money it received. In January 2025, Nussbaum’s businesses ceased operating. Several creditors sued Nussbaum’s firms, alleging fraud, malpractice, and negligence.
Nussbaum assigned assets to a new entity that could be liquidated for the benefit of creditors, according to Diamond. But the process of recovering assets stalled and lawsuits continue to drain resources.
Diamond says the most efficient way to wind down Nussbaum’s businesses and the quickest way to return funds to creditors is to consolidate all litigation in bankruptcy court.
Mark J. Nussbaum and Associates estimated assets from $1 million and $10 million in its bankruptcy petition. Nussbaum Lowinger estimated assets of $10 million to $50 million. Both firms estimated liabilities from $100 million to $500 million.
The 20 largest unsecured creditors are owed more than $353.7 million, including Elizabeth Capital Success, New York City, $156.4 million and Blueberry Funding, Lakewood, New Jersey, $58.8 million.
Diamond says his objectives are to investigate the conduct of Nussbaum’s businesses, identify and recover assets, and determine the best value for all stakeholders.
