A bombshell report from The Los Angeles Times reveals a California based law firm managed by Michael Avenatti was hit with a $10 million bankruptcy judgment by a judge who was not playing games with the shady lawyer.
In the immediate aftermath of the report, the Obama-linked lawyer resorted to his usual tactics of threatening reporters and claiming they are telling lies. Now that he’s been exposed (again) as a liar and a cheat, he has gone into hiding.
Avenatti represents adult film star Stormy Daniels, who is suing President Donald Trump and his personal attorney, Michael Cohen, to break her nondisclosure agreement. Daniels claims she had an affair in 2006 with Trump, which the president has denied.
In her ruling, Judge Catherine Bauer ordered Avenatti’s company to pay $10 million to attorney Jason Frank, a lawyer who worked for the firm and said it had misstated its profits and owed him millions in fees.
Frank, who worked at Eagan Avenatti, said the firm failed to pay him a $4.85 million settlement that he reached in Dec. 2017, saying Avenatti personally guaranteed the agreement during the meeting at the time.
Avenatti has claimed the report is “nonsense” and that the LA Times reported on the wrong law firm, which has to be the most fake news claim of all-time.
As pointed out by Michael Finnegan, the author of the bombshell report, Avenatti has not pointed to a single fact in the piece that isn’t true. It has been nearly two days since the story was published, and not a single correction or update has been added to the piece. The shady lawyer is nowhere to be found.
Avenatti has not challenged the accuracy of a single fact in this story, now updated with more details on his personal responsibility for millions of dollars in back taxes and unpaid bills. https://t.co/mMw2BkdlBg https://t.co/9faKDUrmws
— Michael Finnegan (@finneganLAT) May 22, 2018
Frank argued in court that the agreement specified that he would collect 25 percent of the firm’s annual profits as well as 20 percent of the fees his clients paid to the company. He resigned in May 2016 after the firm refused to pay him millions of dollars that he was owed under the terms of their agreement.
He said the firm was misstating its annual profits in an attempt to pay Frank less than he was owed, which is fraud. Shortly after he resigned, he brought the case to a panel of independent arbitrators, who found that Avenatti’s firm “acted with malice, fraud, and oppression by hiding its revenue numbers.”
Court documents show that the law firm agreed in December to include two payments to Frank, one for $2 million and the other for $2.85 million. The $2 million payment was due on May 14, and the other at a later date.
Frank tried to be a good guy and give the firm time to pay him what he was owed. They burned him, which isn’t surprising given how shady, corrupt, and slimy Avenatti has proven himself to be.
But Frank got the last laugh, and will be getting a massive $10 million check that will not only hurt the law firm’s bank account, but it opens the floodgates for more of Avenatti’s shady actions to surface.