A federal judge dismissed a petition for bankruptcy protection submitted by Michael Avenatti's longtime law firm after a top creditor alleged in court papers that it was 'fraudulently filed.'
A federal judge rejected a petition for bankruptcy protection that lawyer Michael Avenatti filed on behalf of his longtime law firm, Eagan Avenatti.
Judge Catherine Bauer of U.S. Bankruptcy Court in Santa Ana ordered Avenatti to testify May 8 at a hearing on allegations by creditors of the firm that he submitted its petition for bankruptcy protection in bad faith.Bauer’s quick dismissal of the case came at the request of Jason Frank, a former Eagan Avenatti lawyer who alleged in court papers that the petition was “fraudulently filed” in a maneuver to thwart Frank’s collection of a $10-million judgment against the firm.
Frank had previously filed papers accusing Avenatti of hiding millions of dollars from the judge in 2017 when Bauer was overseeing the firm’s previous bankruptcy. Frank withdrew the papers when Avenatti agreed to the appointment of a receiver to take control of the firm’s financial affairs. Avenatti no longer identifies his law practice as Eagan Avenatti, but continues to use an Eagan Avenatti email address and still features the firm’s former Newport Beach office on his website.
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