Michael Avenatti’s law firm, Eagan Avenatti, was slapped with a $10 million judgment for failing to abide by the terms of a bankruptcy settlement, the Los Angeles Times reported Tuesday.
The law firm reportedly missed a $2 million payment last week it had agreed to make to a former employee, Jason Frank.
“At this point, that’s what’s appropriate,” U.S. Bankruptcy Judge Catherine Bauer said at a hearing Tuesday, according to the Times.
The U.S. government is planning to file a motion alleging Avenatti’s firm failed to pay back taxes as part of the bankruptcy settlement, a Justice Department lawyer revealed at the hearing, according to the Los Angeles Times.
Avenatti pushed back on the Los Angeles’ Times reporting on Twitter and in a statement in the story calling it “over blown.”
Nonsense. Completely different law firm – no ties to Daniels case. Irrelevant. Over blown. Sensational reporting at its finest. Check the facts next time please and report accurately.
— Michael Avenatti (@MichaelAvenatti) May 22, 2018
Avenatti did not respond to TPM’s inquiry, but told Buzzfeed’s Chris Geidner that he did not personally default on any taxes and that the dispute was unrelated to his work representing Stormy Daniels, a porn star paid by President Trump’s personal attorney to keep quiet in 2016 about allegations she slept with Trump.
Demonstrating severe irony impairment, someone from TeamTrump will surely point out you shouldn’t trust someone that’s ever been involved in a multi-million dollar bankruptcy.
Avenatti is one savvy dude, but perhaps he’s getting a bit too much exposure?
Just ONE bankruptcy? What a slacker!
And I think it would be hilarious if, to prove he didn’t default on his taxes, Avenatti made his tax returns public, just to shove it up the asses of the LA Times and Donald Trump.
Icarus
The alacrity of the DoJ in moving on whatever tax problems Avenatti may have is worth examining. Really, there ought be a log we can examine in all such cases.
Not to say the fellow has no tax liabilities, or that there is not a case for enforcement. But this particular person, at this time?
Ask folks such as Mikhail Khodorkovsky. Tax problems come in right behind sexual peccadilloes or transgressions as efficient means to distract or neutralize opponents.