The Newport Beach-based attorney at the center of an adult-film actress’ lawsuit against President Donald Trump seeking to free her from a nondisclosure agreement about an alleged affair was ordered by a federal bankruptcy judge Tuesday to pay $10 million to a former colleague.
Attorney Michael Avenatti’s law firm was ordered by U.S. District Judge Catherine Bauer to fork over $10 million to Jason Frank, an attorney who used to work at the Eagan Avenatti firm.
As part of a bankruptcy settlement regarding his firm, adult-film actress Stormy Daniels’ lawyer had agreed in December to pay $2 million to Frank’s new firm by May 14, but Frank never received the money. Another $2.8 million was due within 120 days of the deal struck in mid-March.
The ruling is final and cannot be appealed, according to court records.
Frank worked at the Newport Beach firm from February 2009 through May 20, 2016, he said in an affidavit filed in court.
Avenatti and his attorneys did not respond to multiple messages for comment.
Also in bankruptcy court on Tuesday it was revealed that Avenatti’s firm failed to pay $440,291 in back taxes, penalties and interest as promised last week to settle a dispute with the IRS. Another $440,291 was due in a couple of months, according to court records.
Avenatti’s firm did pay about $1.5 million as part of the settlement of the tax dispute in late March, according to Thom Mrozek of the U.S. Attorney’s Office.
>> Want to read more stories like this? Get our Free Daily Newsletters Here!Follow us: