By Aaron Miller-
Attorney Michael Avenatti- the man who represented notorious porn actress, Stormy Daniels- is no longer in financial control of his old law firm, as part of an agreement with a former partner who accused him hiding funds from the court. The partner Jason Frank who previously sued Avenatti but settled for millions, was forced to sue to collect the money when Avenatti didn’t pay up on time. Avenatti also promised to cooperate with efforts by Jason Frank, a former lawyer at Eagan Avenatti, to collect on his $10-million judgement against the firm.
The lawyer who rose to public acclaim by by presenting notorious porn actress, Stormy Daniels in her widely documented legal battle with U.S president Donald Trump, had presented himself as the voice of morality and principles in his determined effort to support his client against the American president.
Today, it has been dramatically revealed that he spent the life changing sums on extravagances such as $3,640 on a Ferrari payment, $150,000 for his troubled coffee company and $53,600 for his ex-wife. Court papers reveal that Avenatti used nefarious bank maneuvers when his firm was under federal bankruptcy protection to hide millions of dollars from its creditors.
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The firm first declared bankruptcy when Frank first took action against Avenatti and his Eagan Avenatti law firm, which Avenatti used as an excuse to avoid a deposition and arbitration. Now, Frank is accusing the firm of using that time to hide their cash.
“This includes brazen acts of bankruptcy fraud,” Frank’s lawyer said in a court filing that accused the firm of hiding millions from creditors like Frank.
Records show that Avenatti used some of the money for an ostentatious lifestyle that included $3,640 for a payment on a Ferrari, $21,000 for a company of his that owns a Honda jet, $150,000 for a doomed Global Baristas coffee company that , and $232,875 for his auto racing team HTP Motorsport. The identified expenses were not included in reports Avenatti signed under oath, which were submitted to the bankruptcy court on behalf of the firm.
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The Los Angeles Times revealed that Avenatti reportedly agreed to turn over control of the firm and its assets to a court-appointed receiver, in exchange for Frank withdrawing his bankruptcy fraud allegations. Frank’s court papers alleged that Avenatti used nefarious bank maneuvers when his firm was under federal bankruptcy protection to hide millions of dollars from its creditors.
“This includes brazen acts of bankruptcy fraud,” Frank’s lawyer, Scott H. Sims, wrote in the court documents.
“Every dollar has been properly accounted for and reported as required and as previously set forth in numerous accountings,” he told the Times. “This is much to-do about nothing.”
Avenatti currently operates through the Avenatti & Associates firm, although he still operates an Eagan Avenatti email account. In October 2018, Eagan Avenatti was evicted from California office space for failure to pay rent. At the time, Avenatti said that he had “no responsibility for anything related to the lease.”
Avenatti once considered running for President in 2020, but changed his mind for reasons he said were family related.
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