Nussbaum allegedly Used Escrow Funds for Hush Money

A firm connected to nursing home executive Jacob Sod alleges embattled attorney Mark Nussbaum used its escrow money to pay for a Brooklyn dealmaker’s silence.

Crestview 360 Holdings sued Nussbaum in January, alleging Nussbaum refused to refund $15 million that it claims was supposed to be held in Nussbaum’s escrow account. After the lawsuit was filed Nussbaum suddenly shut down his law firm.

The news sent shockwaves throughout the real estate community. Nussbaum represented some of the biggest real estate players out of Lakewood, NJ, and Brooklyn, including Shaya Prager. Nussbaum called Sod’s lawsuit a “confused mess of scandalous conspiracy theories” in a legal filing.

Sod’s firm alleges in a new lawsuit in New York state court that Nussbaum induced Crestview into depositing funds into Nussbaum’s escrow account on the condition the money could not be moved without Crestview’s written consent.

The Promote first reported the news about the lawsuit.

Crestview alleges that Nussbaum instead wired the $15 million to pay Wolf Wercberger of Borough Park. Wercberger claimed the money was owed to him for a “deal,” according to the complaint.

But Crestview alleges the “deal” was actually hush money stolen from Crestview. The money was given to Wercberger so he would not follow through on threats to inform law enforcement about Nussbaum’s alleged financial improprieties, according to the lawsuit.

Crestview alleges Nussbaum concocted a fake deal so he could transfer the $15 million to Wercberger.

Sod alleges in an affirmation he even contacted the title company, which was the only approved recipient of the escrow funds.

The principal of the title company allegedly said: “Appears to be a fraud. I’m reaching out to Mark [Nussbaum] to see what is going on.”

Nussbaum’s attorney Ethan Kobre of Schwartz Sladkus Reich Greenberg Atlas said the “plaintiff’s allegations are fiction, and we believe Plaintiff knows they’re fiction. There was no hush money’ payment.”

Wercberger’s attorney did not return a request for comment. Crestview’s attorney also did not return a request for comment.

Crestview is seeking to enjoin Wercberger from transferring the $15 million. A hearing will be held on February 20 in Brooklyn.