Michael Avenatti cedes control of law firm

This guy is a real dirtbag Michael Avenatti ceded control of his law firm Eagan Avenatti on Wednesday and allowed a receiver to take over the firm’s bank accounts, case files, computers, and other materials.

The move comes after a former partner of the firm, Jason Frank, alleged in court documents Avenatti concealed millions of dollars in legal fees from the court handling Eagan Avenatti’s bankruptcy and used some of the funds for personal compensation.


Avenatti has agreed to work with Frank so he can collect his $10 million judgment against the firm, but denied he had done anything wrong.



“This is a big nothing. We haven’t been using this firm in any significant way for well over a year,” Avenatti told the Washington Examiner. “This isn’t even the firm that we presently operate out of. Nothing improper occurred. Who cares?


“And further, the motion claiming wrongdoing was withdrawn in its entirety by order of the court together with all of the exhibits,” Avenatti said. “Within hours.”

Eagan Avenatti was forced to submit monthly income and spending reports when the firm was under U.S. Bankruptcy Court protection, which started in 2017. However, Frank accused Avenatti of failing to disclose he opened multiple bank accounts that received millions in legal fees during that period of time.


Personal expenses the money went toward include $13,000 in rent for his Century City Apartment, $53,600 for his ex-wife, Christine Carlin, and a payment on his Ferrari.


“This includes brazen acts of bankruptcy fraud,” Scott Sims, Frank’s attorney, said in the court documents filed Tuesday.


Sims also claimed the motion was withdrawn because Avenatti agreed to its requests.
“The Motion asked the Court to appoint a Receiver to take over Eagan Avenatti and to issue a Restraining Order to prevent Avenatti from hiding or spending EA’s assets, among other relief,” Sims said in a statement to the Washington Examiner. “Today, Avenatti capitulated and agreed to everything we asked for in the Motion. Since he agreed to what we wanted the Motion is now moot so we agreed to withdraw it. The fact EA and Avenatti did not fight the Motion speaks for itself.”
Avenatti is representing adult film star Stormy Daniels in her legal dispute with President Trump for an alleged affair she claims happened more than a decade ago. Trump has denied the affair.


https://www.washingtonexaminer.com/n...ol-of-law-firm