Karma, as they say, is a real b*tch as Michael Avenatti just learned the hard way. Avenatti’s law firm just filed for bankruptcy and that is half the story.
His former partners accuse him of making this move to avoid paying them and to hide his financial shenanigans from creditors.
He owes millions to a former law partner, his ex-wife is coming after him for money and he is still fighting a domestic violence accusation. Not a good start to the year for Avenatti.
Michael Avenatti’s law firm filed for bankruptcy protection Thursday after his ex-partner alleged the television lawyer attempted to hide millions derived from legal fees, according to a report.
The Los Angeles Times reports Avenatti filed for bankruptcy ahead of a scheduled appearance before a federal judge in California Friday, where he was expected to testify on Eagan Avenatti’s financial situation. Jason Frank, an attorney and former partner in the firm, accused Avenatti of attempting to shield legal fees from creditors amid the company’s bankruptcy proceedings.
“Who cares? Old firm that we have not operated under for a very long time,” Avenatti said of the bankruptcy filing to the Times. “We want to ensure the proper distribution of assets to creditors — it means nothing to our current law practice. Onward and upward.”
The filing puts Avenatti’s planned testimony on hold. An attorney for Frank said in a statement that Avenatti’s testimony would have “exposed” the television lawyer’s “financial shenanigans.”
“That Mr. Avenatti would try something so desperate speaks volumes about how bad the evidence is against him,” said attorney Eric George.
In May 2018, U.S. Bankruptcy Judge Catherine Bauer ordered the law firm to pay Frank $10 million. Under a bankruptcy settlement, court documents show Avenatti agreed to pay the Internal Revenue Service (IRS) $2.4 million in unpaid taxes, fines, and interest.