Stormy Daniels’ attorney Michael Avenatti is finding himself on the hot seat over a disbarment complaint and questions about who is funding him and how he obtained bank records for Trump attorney Michael Cohen, ZeroHedge reported.
And now there is a legal complaint seeking Avenatti’s disbarment.
What are the details?
According to the report: “Questions have emerged over who's funding Avenatti, how he was privy to Trump attorney Michael Cohen's bank records - and how exactly did he obtain banking transactions for two men also named Michael Cohen, who he wrongly accused in a seven-page 'dossier'released this week."
Other questions have come to light over a bankrupt coffee chain Avenatti allegedly left with $5 million in unpaid taxes to the IRS, dozens of filed in connection with the failed venture, and $160,000 allegedly owed to a coffee vendor.
Even though Daniels said on Twitter she is not paying the attorney, Avenatti has appeared on CNN dozens of times to talk about President Donald Trump’s alleged decade-old affair with the adult film star, the report stated.
The legal complaint seeking Avenatti's disbarment alleges that he "bought a company out of bankruptcy and then used it for a ‘pump and dump’ scheme to deprive federal and state taxing authorities of millions of dollars," which left over $5 million in unpaid taxes to the IRS,” according to the report.
Avenatti reportedly purchased Tully’s coffee chain out of bankruptcy in 2013, after going into partnership with actor Patrick Dempsey of “Grey’s Anatomy” fame.
But Tully’s has struggled, and more than 45 lawsuits were filed against the chain’s parent company, according to the report.
Avenatti says he no longer owns the company. In 2017, the company allegedly owed roughly $5 million in unpaid taxes to the Internal Revenue Service. In March, all locations of the coffee chain were abruptly closed.
Documents were circulated on Twitter that claim to show the back-taxes, but the authenticity of the paperwork was also disputed.
Dempsey alleges that Avenatti promised to pay through his company, Global Baristas, but lacked the funding. He allegedly instead borrowed $2 million at 15% to complete the transaction. Dempsey then sued to get out of the partnership, claiming Avenatti concealed the Loan and the Security Agreement from him.
Since 2013, 46 cases have been filed against Global Baristas US LLC and its parent company, Global Baristas LLC, in Washington's King County Superior Court.
One of the companies left in Avenatti's wake is Dillanos Coffee Roasters, which CEO David Morris says is owed over $160,000 for beans.