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.