Avenatti Exposed: Stormy's Lawyer May Face Disbarrment, Legal Action As Past Catches Up

Stormy Daniels' lawyer Michael Avenatti has some explaining to do...

After appearing on CNN 59 times to claim the moral high ground over President Trump's alleged decade-old affair with Daniels, skeletons in Avenatti's closet are now beginning to pour out.

Questions have emerged over who's funding Avenattihow 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 left in smoldering ashes with $5 million in unpaid taxes to the IRS, an alleged $160,000 owed for unpaid coffee, and over 45 lawsuits filed in connection with the failed venture. 

Bitter coffee deal

As outlined in a legal complaint seeking Avenatti's disbarment, the balding provocateur "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.

Avenatti purchased Tully's out of bankruptcy in 2013, in partnership with actor Patrick Dempsey, who is best known for his role as Derek "McDreamy" Shepherd in the TV show "Grey's Anatomy." Dempsey sued Avenatti in August 2013 to break off the partnership.

Since then, Tully's has significantly struggled. More than 45 lawsuits have been filed against the chain's parent company, which Avenatti says he no longer owns. In 2017, the company owed roughly $5 million in unpaid taxes to the Internal Revenue Service. And, in March, the coffee chain abruptly closed all locations. -Business Insider

According to Dempsey, Avenatti was supposed to bankroll the deal through his company, Global Baristas, but didn't have the funds - instead borrowing $2 million at an "exorbitant" 15% to close on the transaction. The actor sued to get out of the partnership after he claimed "Avenatti concealed the Loan and the Security Agreement from Dempsey." 

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. 

Speaking of back taxes, Avenatti reportedly paid himself $1.85 million in 2015 and 2016 while his law firm racked up over $1.5 million iun back taxes.

Read the bar complaint against Avenatti here:

Big trouble over leaks?

Next there's the question of who exactly leaked Trump attorney Michael Cohen's bank records - and the records of two unrelated men named Michael Cohen who Avenatti wrongly accused of.  Yesterday we reported that the US Treasury launched a probe into the leak, as Avenatti refuses to disclose his source.

Accordingly, someone may be in deep trouble over the leaks. As The Daily Beast's Kate Briquelet notes, Cohen's attorneys filed court papers questioning the veracity of Avenatti's "dossier," along with how he came to obtain the banking transactions. 

A spokesman for the Office of the Inspector General told ABC News that investigators are probing whether Suspicious Activity Report information “has been improperly disseminated.” The IG investigation arose from a New York Times report that apparently included the same information Avenatti released, according to ABC News.

tax lawyers interviewed by The Daily Beast say they’re puzzled that Avenatti would have access to Cohen’s banking info—especially after Daniels’ civil case was put on hold, and because the feds are still investigating Cohen. They said it’s highly unusual for SARs, which are confidential and not to be made public, to be leaked.

Experts told The Daily Beast the level of detail in Avenatti’s report suggests he obtained Treasury documents that only the agency’s Financial Crimes Enforcement Network (FinCEN) had access to or which were requested by law enforcement—such as the U.S. Attorney’s Office for the Southern District of New York, which has been investigating Cohen for months, reportedly eyeing the Trump stalwart for possible bank fraud, wire fraud, and campaign-finance violations.-The Daily Beast

I think somebody from the SDNY is leaking,” said Las Vegas-based trial attorney Robert Barnes. “The degree to which Avenatti had details implicates them badly.”

Avenatti published details on the identities of and payments from Cohen’s “business clients” AT&T and Novartis, Ryan stated. The defense attorney denied Columbus Nova, the firm connected to the Russian oligarch, routed funds to Cohen on behalf of Vekselberg and his cousin Andrew Intrater.

Federal investigators have Cohen’s bank records as a result of the April raids, Ryan said, adding, “but we are not aware of any lawful attempts by Mr. Avenatti to obtain these records.” -The Daily Beast

Martin Sheil, a retired IRS branch chief of the Criminal Investigation division, told The Daily Beast that whoever leaked the SARs to Avenatti could face criminal penalties.

That person has to be either bank connected and therefore knowledgeable as to the confidentiality provisions of the SAR process, or this person could be law-enforcement related,” Sheil said. He added, “Every law-enforcement person who has access to the FinCEN database containing SARs must take an online course that goes over the confidentiality provisions of the Bank Secrecy Act and FinCEN protocols.”

Who's funding Avenatti?

Last but not least are questions swirling over exactly who is funding Michael Avenatti's crusade

After Stormy Daniels admitted over Twitter that she's not paying for his services, rumors began to swirl that his efforts could be bankrolled by everyone from George Soros to Prince Alwaleed Bin Talal.

But this release of a “report” by Avenatti also raises the question of where and how did he get this detailed financial information because he didn’t find it on Google. This is the kind of information that would have been known only by the Treasury Department, his banks or by prosecutors, raising some serious questions about what kind of operation Avenatti is running. Is there a team of people digging this up? Are they paying off sources? Is Fusion GPS involved? Are there political donors behind it that could make this campaign work? He can’t be both an attorney and then participate as an officer of the court in trafficking illegally obtained information.

Avenatti has been given a free, unfettered media perch on TV to spread his stuff without the networks forcing him to meet any disclosure requirements, saying that he is Daniels’s attorney when someone else entirely is paying for this operation is not true disclosure that allows the viewer to evaluate the source and potential conflicts. He is now being given deference as though he is a journalist interested in protecting unverified sources while he makes the most headline-grabbing statements he can. Lawyers need to disclose the source of their evidence. -The Hill, op-ed

Avenatti, meanwhile, tells the Daily Caller that "any suggestion or claim that somehow this is being funded by the Left or funded by some PAC or funded by left-wing political interests or funded by any other political interests is complete and utter bullshit."

Avenatti repeatedly pointed to an April 30 tweet in which he said, “The only source of outside funds for the legal fight we are waging is the [CrowdJustice] site and Ms. Daniels’ personal funds. No PACs, no political party, no special interests, no fat cat donors. The haters need to come up with a new conspiracy theory.”

TheDCNF asked Avenatti about his funding source after The Hill ran a Thursday column that claimed “Avenatti needs to come forward with exactly who is financing his operation, who his sources were for detailed banking information, and whether he really is an attorney solely representing Stormy Daniels or just using her as cover to wage a political operation.”

The only sources of funding for his legal battle against Trump are a small payment Daniels gave him up front, plus money raised on a crowdfunding site, CrowdJustice, Avenatti indicated to TheDCNF.

“Ms. Daniels paid a de minimis amount — plus the CrowdJustice, period,” Avenatti said. To date, the crowdfunding effort has raised over $425,000. -Daily Caller

And there we have it - as Michael Avenatti comes under fire for naming the wrong "Michael Cohens" and his access to confidential banking records in his quest to take down Donald Trump and his attorney, his past is catching up with him - and threatens to erase any semblance of credibility he may have once had.

Comments

nmewn espirit Thu, 05/10/2018 - 19:17 Permalink

lol...I swear, everyday is just like Christmas morning with these dumbass dimocrat hacks. This fucking Avenatti cat has the potential to bring the whole house of cards down.

How and where did he get private bank records and from who? It's not like one can send out a mass mailer inquiry...lol...and better yet, who is paying Avenatti? It damned sure ain't the deeply offended & butt hurt porn queen (see what I did there?...lol). 

I'm sticking to my original theory that Schneiderman got a "deep peak" after the New York raids on Cohen's properties and relayed it to this fellow traveler, it's really the only thing that makes sense to me.  

In reply to by espirit

Creative_Destruct Joe Davola Thu, 05/10/2018 - 21:08 Permalink

Avenatti, another scumbag who's just blinded enough by his own ego and self righteousness to completely miss the fact that when you go after the skeletons in someone else's closet, they'll come after YOURS to retaliate.

Although it's getting somewhat old, it's still amusing to see all these slugs try and fail to lay a slime-trail up the hill to the moral high ground.

In reply to by Joe Davola

Tarzan ufos8mycow Thu, 05/10/2018 - 19:02 Permalink

The falsely accused are the keys to who leaked this info.

Think about it.  The only way the mistaken identity could have accord is if someone was searching a data base randomly for banking transactions around the world, made by "Michael Cohen". 

Who has access to this info and the ability to search for and find these falsely identified people, in and outside the US?  Only certain investigators, and likely only criminal investigators at the federal level.

  There's just no other way the extra Cohen's could get dragged into this, without casting a very wide net, the kind of net a Special Prosecutor would have...

In reply to by ufos8mycow

nmewn Tarzan Thu, 05/10/2018 - 19:27 Permalink

True. 

However, it seems pretty amateurish on one level, the real Michael Cohen's SSI number (or his company's tax number) would have been right there on the screen too, for IRS tax purposes...you know how those pencil pushing bastards are.  

But what the hell, we're talking friggin dim hacks here, logic starts flying out the window expecting them to be precise & competent...lol.

In reply to by Tarzan

bigkahuna bigkahuna Thu, 05/10/2018 - 20:15 Permalink

http://home.capecod.net/~tpanitz/ejoke/j34.html

One day an Englishman, an American, and a Canadian walked into a pub

together. The proceeded to each buy a pint of Molson Canadian. Just as

they were about to enjoy their beverage three flies landed in each of

their pints.

The Englishman pushed his beer away from him in disgust.

The American fished the offending fly out of his beer and continued

drinking it as if nothing had happened.

The Canadian picked the fly out of his drink and started shaking it over

the pint, yelling, "SPIT IT OUT, SPIT IT OUT YOU BASTARD!!!"

In reply to by bigkahuna

Tarzan bigkahuna Fri, 05/11/2018 - 05:08 Permalink

Four guys who worked together always golfed as a group at 7 a.m. Sunday. But one of them got transferred, and they were talking about trying to fill out the foursome.

A woman standing nearby says to them, "Hey, I like to golf, can I join the group?"

They were hesitant but said she could come once to try it. She said "Good, I'll be there at 6:30 or quarter to seven."

She showed up right at 6:30, and wound up setting a course record with a 7-under-par round. The guys went nuts and everyone in the clubhouse congratulated her. Meanwhile, she was fun and pleasant the entire round. The guys happily invited her back the next week and she said "Sure, I'll be here at 6:30 or quarter to 7."

Again, she showed up at 6:30 Sunday morning. Only this time, she played left-handed, and matched her 7-under par score of the previous week. By now the guys were totally amazed, and they asked her to join the group for keeps.

They had a beer after their round, and one of the guys asked her, "how do you know if you're going to golf right-handed or left-handed?"

She said "That's easy. Before I leave for the golf course, I pull the covers off my husband, who sleeps in the nude. If his dick is pointing to the right, I golf right-handed; if it's pointed to the left, I golf left-handed."

A guy asked "what if it's pointed straight up?"

She said "Then I'll be here at quarter to seven."

 

In reply to by bigkahuna

robobbob Tarzan Thu, 05/10/2018 - 21:52 Permalink

or someone setting out a few well placed landmines to see what unwary fool steps on them

take some legitimate sounding and irresistible nuggets and throw in a handfull of poison pills and see whos bodies start popping up. there might have been five different versions of this story put out there with each leading to a particular starting point. everyone who had a hand in getting this version of the story to this idiot lawyer has got to be sweating bullets.

In reply to by Tarzan

BullyBearish Leakanthrophy Thu, 05/10/2018 - 18:21 Permalink

by the playbook...when things get too hot (a la clinton's leaked emails and private server info) gen up an even WORSE villain (russians, wikileaks, etc.)  and pound the $hit out of it in the media...guaranfu*&ing T'eed to work everytime because most are binarily challenged:  when confronted by evil become distracted when someone tells you that evil is nowhere NEAR as bad as the evil present to you...sad

In reply to by Leakanthrophy

MarsInScorpio Leakanthrophy Thu, 05/10/2018 - 20:10 Permalink

leakanthrophy:

Meet leakanthrophy, the latest self-revealed AI TrollBot.

1) Notice that leak uses exactly the same format template as does the other AI TrollBot, beepbop.

2) The algo writing and posting this shit is always limited in character count.

3) The post ALWAYS ends with some kind of click-bait.

How anyone can upvote an AI TrollBot escapes me. Talk about self-reverential feedback mechanisms . . . enjoy your dopamine rush as this TrollBot echoes your prejudices and bigotries.

And as I noted before, beepbop is another in this group of invasive AI TrollBots. Both are sending you to virus-infected files to add you to their Bot Net.

https://en.wikipedia.org/wiki/Botnet )

TYLERS: Can you please explain to us why you are allowing these completely infected carriers of Bot Net software to infect your site? What is your legal responsibility when one of your readers who clicked on these links WHICH YOU NOW KNOW WITH CERTAINTY are arrested for child porn, credit card theft, stolen identity . . . are you really ready to absorb the financial loss and possible criminal penalties for knowingly providing the forum for these criminals to facilitate their crimes, and victimize your readers?

And are you really ready to kiss your site-eyeballs goodbye when these AI TrollBots - which are here to put you out of business - accomplish their goal to shut you down?

Are you?

In reply to by Leakanthrophy

Bastiat EuroPox Thu, 05/10/2018 - 18:20 Permalink

Right and Clinton has received substantial donations from that alleged child trafficking cult.  For Stormy it starts out: "this could be your ticket to real money, baby," and it ends up "It puts the lotion on its skin or it gets the hose." 

In reply to by EuroPox