Michael Avenatti's Law Firm Compared to Ponzi Scheme by Former Client
Michael Avenatti has been accused by a former client of running his law firm like a Ponzi scheme, reports The Daily Beast.????The California-based lawyer best known for his representation of adult film star Stormy Daniels against President Trump, has had claims filed against him.????Avenatti’s former client, Gregory Barela filed the claims with a private arbitrator, saying Avenatti won a settlement for him but never paid him the money, instead offering to lend him the funds at at 10 percent interest rate.????The claim against the law firm says “Avenatti was operating his law firm in a Ponzi scheme like manner, taking settlement proceeds received for clients to pay off debts, pay the other individual Defendants’ salaries and bonuses, and fund his lavish lifestyle.”????Avenatti refuted the claims telling the Daily Beast “These allegations are completely fabricated, bogus, and fraudulent.
We have no idea where this is coming from or why someone would make up this ridiculous false story and deceive his attorneys.”????Avenatti was arrested for alleged domestic abuse in November and continues to represent Daniels in her legal battles against Trump.
According to Reuters, Japan has extradited a father and son to the United States to face charges in Las Vegas over their alleged roles in a $1.5 billion Ponzi scheme that cheated thousands of Japanese..