Kirsters Baish| On Tuesday, Michael Avenatti’s law firm, located in Newport Beach, California, was smacked with a $10 million bankruptcy judgement. I’m sure you’ve heard about Avenatti by now, the infamous lawyer to porn star and Trump accuser Stormy Daniels. His 15 minutes of fame is just about up, and things aren’t looking too hot for his career.
It was reported by the Los Angeles Times that a Santa Ana United States Bankruptcy Court Judge, Catherine Bauer, ordered on Tuesday that Avenatti’s law firm, the Eagan Avenatti Law Firm, is to cough up $10 million to a lawyer who used to work at the firm, Jason Frank. It was explained during the hearing by the DOJ that the shady law firm is guilty of defaulting on back taxes which they had previously agreed to pay the IRS in an entirely different bankruptcy settlement.
Court records show that Avenatti had agreed to hand over $2.4 million in penalties, back taxes, as well as in interest in the January 30 bankruptcy settlement. The firm had withheld around $1.3 million in payroll taxes from their employees, however that money never made it to the government as it was supposed to.
Judge Bauer described the ruling as “appropriate” during the hearing.
Assistant United States Attorney Najah Shariff explained that a motion will be filed by the government in order to start up the process of collection.
The Los Angeles Times spoke with Avenatti, who claimed that any questions asked about the mysterious missing payment are “irrelevant” to the case.
He stated, “Sensational reporting at its finest. No judgment against me was issued nor do I owe any taxes.”
Breitbart News writes:
A lawsuit filed last week in the Superior Court in Los Angeles alleged Avenatti is late to pay $2 million to Frank, who he owes a total $4.85 million.
“Avenatti has no valid excuse for failing to perform this obligation,” Frank says.
Avenatti recently came under fire for allegedly threatening media outlets over the personal scrutiny he’s receiving about his past.
The Daily Caller had reported that the lawyer had a “questionable history,” to which Avenatti reportedly threatened to take legal action against the news outlet as well as the individual journalists who wrote the article.
The Daily Caller decided to publish the email that Avenatti had sent them, in which he stated, “Let me be clear. If you and your colleagues do not stop with the hit pieces that are full of lies and defamatory statements, I will have no choice but to sue each of you and your publication for defamation. During that process, we will expose your publication for what it truly is. We will also recover significant damages against each of you that participated personally. So if I were you, I would tell Mr. Trump to find someone else to fabricate things about me.”
“If you think I’m kidding, you really don’t know anything about me. This is the last warning,” Avenatti claimed.
Making threats against reporters and entire news outlets? Is that really what it’s come down to? This guy needs to go back to hiding under the rock he came out from.