"Whatsapp messages between Nussbaum and Chopp included in the lawsuit offer a rare window into Nussbaum's business. Nussbaum has admitted to running a Ponzi scheme with his associate Mendel Steiner. Part of the scheme involved using Nussbaum's escrow funds to lend money to real estate dealmakers as short-term loans. The messages illustrate Nussbaum's nonchalance when it came to extending loans or making investments. Some messages show that Nussbaum lent money first and asked questions later."
"Others show that Chopp appears to request proof of funds for his company, Opal Healthcare, in an unrelated deal. (Nussbaum used a tactic called show capital where he would provide short term loans to make borrowers look capitalized). [8/11/22, 1:42:55PM] Tzally Chopp: Please send me letter saying opal Hcs has 15M for operating ty if this works I make crazy money [8/11/22, 1:46:04PM] Nussbaum: and you will remember that i helped you so i can make some crazy money also, yes?"
Mark Nussbaum diverted approximately $336 million of client escrow funds into a network of loans and transfers tied to investor Mendel Steiner, who allegedly moved money through shell companies. Creditors are seeking to collect more than $400 million in missing escrow funds. Sheldon Eisenberger, handling the wind-down and liquidation of Nussbaum's former law firms, filed a lawsuit in the Southern District of New York alleging Tzali Chopp failed to repay a $3 million loan, now claimed at $6.3 million with interest. WhatsApp messages show Nussbaum lending casually, using short-term "show capital" loans, and often lending before due diligence.
Read at therealdeal.com
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