Michael Avenatti’s Orange County law firm was hit with a $10 million judgment from a federal bankruptcy court Tuesday, The Los Angeles Times reported, delivering a bit of an embarrassment to the attorney for Stormy Daniels.
Mr. Avenatti is listed as managing partner at Eagan Avenatti LLP, the firm that was ordered to pay Jason Frank, a lawyer who says he was stiffed for work he did when he was at the company. Mr. Avenatti said his work for the adult film actress whose real name is Stephanie Clifford is done under a separate firm and the judgment has no bearing on her case against President Trump and his former personal lawyer, Michael Cohen.
Judge Catherine E. Bauer of Santa Ana’s U.S. Bankruptcy Court issued Tuesday’s judgment after the firm missed a deadline to pay $2 million to Mr. Frank, The Times reported.
An earlier settlement reportedly said Mr. Avenatti would pay Mr. Frank $4.85 million, which would begin with a $2 million payment last week. If a payment was missed, Mr. Avenatti agreed he would accept the court’s $10 million judgment.
The Justice Department also told the judge Mr. Avenatti defaulted on roughly $440,000 in back taxes, the newspaper reported.
Mr. Avenatti is representing Ms. Clifford in her lawsuit against the president and Mr. Cohen. He denies owing taxes and called the report about the Eagan Avenatti law firm “irrelevant.”
“Over blown. Sensational reporting at its finest. No judgment against me was issued nor do I owe any taxes,” Mr. Avenatti told The Times.
Mr. Avenatti also took to Twitter to criticize the report: “Nonsense. Completely different law firm — no ties to Daniels case. Irrelevant. Over blown. Sensational reporting at its finest. Check the facts next time please and report accurately.”
Also Tuesday, Mr. Avenatti wrote a letter to the judge in Ms. Clifford’s lawsuit against Mr. Cohen, alleging that Mr. Trump’s ex-attorney leaked to news outlets some audiotapes that pertain to his client.
It’s unclear what the tapes detailed or the media outlets to which they were reportedly given, but Mr. Avenatti is calling for U.S. District Judge Kimba Wood to question Mr. Cohen and his legal team about the leaks.
“We think that these elect leaks are meant to paint a false narrative relating to Mr. Cohen and his business dealings at the same time he is not disclosing numerous other recordings of him speaking with individuals such as Mr. Trump,” the letter read.
• Alex Swoyer can be reached at aswoyer@washingtontimes.com.
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