Avenatti surrenders control of longtime law firm amid allegations of ‘brazen acts of bankruptcy fraud’

(FILE PHOTO video screenshot)

From being accused of criminally conspiring against Supreme Court Justice Brett Kavanaugh to being called out publicly by his client Stormy Daniels and then later being evicted from his office, disgraced attorney Michael Avenatti’s life late last year had been total hell.

And according to the latest reports, it still is, though as usual, he solely is to blame for his misfortune.

This week the “porn star lawyer,” as he’s more commonly known, agreed to hand over the financial reins of his longtime law firm, Eagan Avenatti, to what’s known as a “receiver.”

The debacle started when the lawyer’s former partner, Jason Frank, sued him for $2 million in unpaid payments. Last May a judge ruled in Frank’s favor and ordered Avenatti to fork over a whopping $10 million to account for presumably both the $2 million and also all the lost time.

But instead of paying up, Avenatti decided to continue playing silly games.

Fed-up with his former partner’s antics, Frank decided to expose the “porn star lawyer” by submitting evidence to the court showing how he’d tried to swindle the government via his firm’s prior bankruptcy proceedings.

“Frank’s court papers alleged that Avenatti used nefarious bank maneuvers when his firm was under federal bankruptcy protection to hide millions of dollars from its creditors,” the Los Angeles Times reported. “Through subpoenas to banks, Frank obtained records that detail millions of dollars in legal fees, settlement payments and other funds that Avenatti collected during the bankruptcy but did not disclose to the trustee.”

“This includes brazen acts of bankruptcy fraud,” Frank’s attorney, Scott H. Sims, wrote in court documents.

It’s because of these documents that were reportedly filed with the court Tuesday that U.S. Magistrate Judge Karen E. Scott ruled Wednesday that Avenatti must hand over financial control of his law firm to Newport Beach accountant Brian Weiss, a so-called “receiver.”

But there’s more.

“Avenatti also promised to cooperate with efforts by Jason Frank, a former lawyer at Eagan Avenatti, to collect on his $10-million judgment against the firm. Avenatti will continue to work as the lead lawyer in his law practice, which he now calls Avenatti & Associates,” the Times  noted.

To say he got screwed would be an understatement, though it should be kept in mind that he earned it via his own longtime shady and unscrupulous behavior.

Of course, Avenatti continues to act smug and confident despite his continued losses.

“This is a big nothing — it is my old firm. We haven’t been operating under this firm primarily for over a year,” he said to Law&Crime.

In a statement to the Times, he likewise denied Frank’s proven accusations against him.

“Every dollar has been properly accounted for and reported as required and as previously set forth in numerous accountings. This is much to-do about nothing,” he said.

He seems forever equipped with an excuse.

“There has never been any misdeeds or fraud — any claim to the contrary is politically motivated, completely bogus and driven by Jason’s own personal demons and vendetta,” he added.

This cavalier attitude has become the hallmark of his demonstrably failed career. Anytime something happens — him losing his Stormy Daniels case, him being outed for conspiring against Kavanaugh, etc. — he just shrugs his shoulders in indifference.

HERE’S WHAT YOU’RE MISSING …

Meanwhile he seems to spend every waking moment touting left-wing talking points and stories on his Twitter feed, all while acting like a braggadocious hotshot who stands a real shot at winning the 2020 presidential election. Newsflash: he doesn’t stand a chance in hell.

Nor is anyone impressed by his trash-talking:

He can talk all the trash he wants, but it seems the public has already decided that he’s, well, a loser:

The latter tweet was in reference to allegations he beat up his girlfriend last year.

HERE’S WHAT YOU’RE MISSING …

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Vivek Saxena

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