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Michael Avenatti accused of hiding millions of dollars from bankruptcy court
Michael Avenatti hid millions of dollars from the court overseeing his law firm’s bankruptcy and used much of the money for personal compensation, a former partner alleges in new court records.
The firm, Eagan Avenatti, was required by law to file monthly reports on its income and spending during the year when it was under U.S. Bankruptcy Court protection from its creditors, starting in March 2017. Avenatti signed the reports under penalty of perjury as the firm’s managing partner and majority owner.
But the reports did not disclose that Avenatti opened six bank accounts that received millions of dollars in legal fees during the bankruptcy, his former partner claims in court documents filed Tuesday night.
The reports also divulged nothing about the personal compensation to Avenatti, which would have required permission from the bankruptcy trustee, the court papers allege.
Avenatti used some of the money for personal expenses such as $14,236 in rent for his Century City apartment, a $3,640 payment on his Ferrari, $16,000 to Passport 420, an Avenatti company that owns a Honda jet, and tens of thousands of dollars in bills for his troubled coffee company, Global Baristas, the records show.
https://www.latimes.com/politics/la-na-pol-avenatti-bankruptcy-20190212-story.html
The firm, Eagan Avenatti, was required by law to file monthly reports on its income and spending during the year when it was under U.S. Bankruptcy Court protection from its creditors, starting in March 2017. Avenatti signed the reports under penalty of perjury as the firm’s managing partner and majority owner.
But the reports did not disclose that Avenatti opened six bank accounts that received millions of dollars in legal fees during the bankruptcy, his former partner claims in court documents filed Tuesday night.
The reports also divulged nothing about the personal compensation to Avenatti, which would have required permission from the bankruptcy trustee, the court papers allege.
Avenatti used some of the money for personal expenses such as $14,236 in rent for his Century City apartment, a $3,640 payment on his Ferrari, $16,000 to Passport 420, an Avenatti company that owns a Honda jet, and tens of thousands of dollars in bills for his troubled coffee company, Global Baristas, the records show.
https://www.latimes.com/politics/la-na-pol-avenatti-bankruptcy-20190212-story.html
7 replies
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I knew that he was being examined, but I didn't realize he was up for possible contempt.
