The L.A. Times has reported that Michael Avenatti, Stormy Daniels' lawyer, that his law firm was hit with a $10 million judgment in US Bankruptcy Court.
Breaking: Avenatti law firm hit today with $10 million judgment in US Bankruptcy Court. Justice Dept lawyer says Avenatti also defaulted on back taxes he’d agreed to pay. Story ahead.
The law firm of Stormy Daniels' attorney Michael Avenatti was hit with a $10-million judgment Tuesday in U.S. Bankruptcy Court after he broke his promise to pay $2 million to a former colleague.
Judge Catherine Bauer of U.S. Bankruptcy Court in Santa Ana ordered the Eagan Avenatti law firm to pay the $10 million to Jason Frank, a lawyer who used to work at the Newport Beach firm.
"At this point, that's what's appropriate," Bauer said at a brief hearing.
To settle his law firm's bankruptcy, Avenatti had personally guaranteed that the $2 million would be paid to Frank last week, but both he and his firm failed to turn over the money.
Avenatti response was "nonsense".
"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," Avenatti replied.