Avenatti Loses Control Of Firm Amid Claim He Hid Millions

Law360 (February 14, 2019, 2:12 PM EST) -- Michael Avenatti has agreed to give up control of his bankrupt law firm's finances after a former partner accused Avenatti of "brazen acts of bankruptcy fraud," including hiding million of dollars and surreptitiously stealing artwork from the firm's former office in an attempt to duck a $10 million judgment. 

On Thursday, U.S. Magistrate Judge Karen Scott approved the joint motion from Avenatti, Eagan Avenatti LLP, and Jason Frank Law to appoint a receiver to take charge of Eagan Avenatti's assets. Frank had asked the California federal court to name a receiver Wednesday, claiming among other things that Eagan Avenatti had transferred nearly...

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