Michael Avenatti’s Financial Missteps Turning Out to Be Devastating For Stormy Daniels

Kirsters Baish| For all of the media coverage that porn star Stormy Daniels’ attorney, Michael Avenatti, has been getting, they certainly haven’t been reporting too much about his past financial issues, which include bankruptcies as well as growing back taxes. Avenatti has claimed that his past financial woes have nothing to do with his representation of his current client or the lawsuit that she has filed against President Trump. The issue for Avenatti is that these old reports may have an effect on the way he continues on as he attempts to intervene in different legal proceedings having to do with this particular lawsuit.

The lawyer is at the center of a state bar investigation currently in the land of the commies, California. The investigation began after another attorney accused Avenatti of running a totally illegal “pump-and-dump” scheme via a totally bankrupted coffee shop chain that the lawyer had gained control of back in 2013. Prior to appearing in jurisdictions in which they are not legally licensed to practice law, attorneys are required to obtain judicial permission. Western Journal explains “The bar association probe could serve as a basis for his exclusion from cases related to Clifford’s, as most courts require lawyers from other states to disclose any disciplinary proceedings commenced against them when seeking admission.”

Western Journal writes:

For example, Avenatti asked the federal trial court in Manhattan to appear as an interested party in a challenge Cohen brought against the April 9 search of his law offices by federal investigators. Such petitions, called pro hac vice motions, are routinely granted, although Cohen’s lawyers took the rare step of opposing the request on May 18.

Cohen’s lawyers argue Avenatti should be excluded from the case for several reasons, one of which is his failure to alert the court to the ongoing California inquiry. The Manhattan court’s rules require attorneys requesting pro hac vice admission to disclose “whether there are any disciplinary proceedings presently against the applicant.”

As such, the investigation — the allegations which spurned it and all information relating to it — goes directly to his ability to represent Clifford in the Cohen case.

Let’s talk for a moment about evidence that surfaced which proves that Avenatti did not pay his taxes. It was first reported by Fox News that a complaint made by Washington attorney David Nold was brought up by the State Bar of California. The complaint, which was submitted on March 26, told its enforcement unit “for further investigation and prosecution, if warranted.” Inquiries like this one are only followed through on when the complaint has credible evidence that a serious violation had been committed. Fox News reported on the complaint on April 18 when they obtained it.

It started with a dispute between a Washington state mall that Nold represents, Bellevue Square, and a coffee shop chain owned by Michael Avenatti, Global Baristas US LLC. In the landlord-tenant dispute, it was found by Nold that the company had withheld roughly $6 million in taxes from both federal and state officials. Avenatti is criminally liable for not having made these payments.

The lawyer denied liability when making his statement to Fox News.

He claimed, “At no point in time was I ever responsible for any taxes for Global Baristas US LLC, nor was I ever a member of that entity, nor did I own any direct interest in that entit.”

That’s not the only sketchy activity on Avenatti’s log, however. It was also alleged in the complaint that Avenatti’s company had “financed the retainer of a law firm to represent Avenatti’s own law practice in separate bankruptcy proceedings. Global Baristas US paid the law firm Baker & Hostetler $100,000 on March 15, 2017, and committed to a second $100,000 payment due by April 12, 2017 to represent Eagan Avenatti in federal bankruptcy court, according to legal documents Avenatti himself submitted in April 2017.”

The complaint stated, “Thus he admits that he committed Global’s funds to his bankrupt law firm with connection in their business operations and no duty to repay the money.”

Another dispute came out of the original one. This one involved Avenatti’s previous law partner, Jason Frank. The firm had agreed that they would pay Frank $4 million, which Avenatti himself agreed to pay. The money never made its way to Frank. Because of this, on Tuesday, a bankruptcy judge pushed a $10 million judgement against them.

Michael Avenatti spoke to the Los Angeles Times, claiming, “Sensational reporting at its finest. No judgment against me was issued nor do I owe any taxes.”

It’s only a matter of time before Avenatti is drained of his funds and exposed for the crook that he is.