Feds say ex-firm of Stormy Daniels' lawyer owes unpaid taxes

Legal News Feed

The Justice Department says Stormy Daniels' lawyer, Michael Avenatti, made "misrepresentations" in a bankruptcy case involving his former law firm that owes more than $440,000 in unpaid federal taxes.

Avenatti's former firm, Eagan Avenatti LLP, had agreed in January to pay about $2.4 million in back taxes and penalties as part of a resolution of a bankruptcy case involving the firm.

Court documents show some of the money was paid, but attorneys for the government said in May that the firm still owed a portion of the unpaid tax money.

On Tuesday, the U.S. attorney's office in Los Angeles filed a motion asking a federal judge to compel the payment of $440,291 in unpaid taxes and more than $11,700 in interest. Lawyers from the U.S. attorney's office represent the government in bankruptcy court when there's a debt to a government agency, like back taxes or unpaid student loans.

Avenatti, who has garnered national attention as the attorney for Daniels, the porn actress who is suing President Donald Trump following an alleged 2006 affair, said Wednesday that the court filing was "part of a smear campaign" and stressed that he doesn't personally owe any of the money.

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