Michael Avenatti accused of hiding millions from court, relinquishes control of law firm

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Michael Avenatti gained nationwide fame as the attorney of Stormy Daniels, an adult film star. Daniels alleged that Donald Trump slept with her when his first wife, Melania Trump, had recently given birth — and that he paid her money to keep quiet about the affair. Avenatti even flirted with the idea of running for president in 2020. However, it seems that now, he has some problems of his own — specifically with his law firm.

According to the LA Times, Avenatti agreed to relinquish control of his law firm, Eagen Avenatti. Here’s why:

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Michael Avenatti agreed Wednesday to relinquish financial control of his longtime law firm hours after a former partner filed papers accusing him of hiding millions of dollars from the court that oversaw its bankruptcy.

Avenatti was taken to court by a former lawyer at the firm, Jason Frank, for $10 million dollars, and Frank successfully received a judgment from a U.S. District judge to stop the firm from draining its assets. Frank’s lawyers say that Avenatti’s actions include “clear bankruptcy fraud.”

Apparently, as soon as the firm filed bankruptcy, it was required to file monthly accounts of its spending and income. Frank alleges that Avenatti signed the reports without also mentioning six bank accounts that received millions of dollars in legal fees during the bankruptcy.

Avenatti insists that the lawsuit is nonsense, and only driven by a vendetta. However, it can be true that someone is driven by a vendetta and that they have a valid claim, which the judge’s ruling in Frank’s favor seems to suggest.

In total, it seems like Avenatti might not have the time or reputation to run for president with a stain like an ugly lawsuit on him, but of course, that has not been a deterrent for the current president.

 

Feature image provided via Flickr by Luke Harold