Citing Indictments, California State Bar Moves to Suspend Avenatti
In an email to The Recorder Monday evening, Avenatti called the bar's actions "a pile-on" that was "entirely expected in light of the pending charges."
June 03, 2019 at 10:35 PM
3 minute read
California's state bar late Monday announced that it has moved to suspend Michael Avenatti's bar license in light of his legal troubles in Los Angeles and New York.
A 573-page petition filed with the state bar court's office in Los Angeles argues that the Southern California lawyer should be placed on “involuntary inactive” status because he has caused “substantial harm” and there is a “reasonable probability” Avenatti will be disbarred.
The filing cites Avenatti's federal indictment in April, which alleges he embezzled more than $12 million from four clients, including Gregory Barela. Prosecutors for the Central District of California say Avenatti presented Barela with a sham settlement agreement and then diverted $840,000 owed to his client for his own use.
“Further, despite the State Bar's request, respondent has not provided the State Bar with a substantive response—let alone defense—to these charges nor any evidence to refute the allegations,” the filing said.
In an email to The Recorder Monday evening, Avenatti called the bar's actions “a pile-on” that was “entirely expected in light of the pending charges.”
“I offered to cooperate with the Bar and instead they decided to issue a press release as a stunt,” he wrote. “I look forward to being fully exonerated by the facts.”
Avenatti and his attorney, Ellen Pansky of Pansky Markle in Pasadena, have 10 days to respond to the bar's petition and, if they choose, to request a hearing. If a hearing is held, the bar court judge will have 30 days to decide whether the lawyer should be placed on involuntary inactive status, which has the same practical effect as a suspension: Avenatti would be unable to practice law.
If the court grants the involuntary enrollment, the bar has 45 days to pursue disciplinary charges, which could lead to disbarment.
The petition filed by the bar Monday also cites the indictments Avenatti is facing in the Southern District of New York for allegedly trying to extort millions of dollars from Nike Inc. and for allegedly stealing hundreds of thousands of dollars from another former client, Stormy Daniels, the adult entertainment star who has said she had an affair with President Donald Trump.
Avenatti, who once contemplated a presidential run, has denied all the charges against him.
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