Firm of Stormy Daniels lawyer hit with $10 million judgment
© Getty Images

The law firm of Michael Avenatti, who represents adult-film actress Stormy Daniels, was served with a $10 million settlement fine on Tuesday in bankruptcy court over a lapsed payment agreement. 

The Eagan Avenatti law firm will be required to pay the sum after Avenatti failed to follow through in paying $2 million to a former associate, Jason Frank, to settle the firm's bankruptcy, according to the Los Angeles Times

Avenatti's firm also owes back taxes to the IRS that includes more than $1.3 million in employee taxes that it never handed over to the government, the Justice Department reportedly said at the hearing. 

ADVERTISEMENT

The name partner, who agreed to personally pay back $1.5 million of the total sum, has missed an installment and will reportedly soon face legal action by the federal government to demand payment. 

Despite his position as the lead equity partner in the firm, Avenatti told the Times that they had confused him with an unrelated legal entity.  

Avenatti is handling the legal affairs of Daniels, whose real name is Stephanie Clifford, as she pursues legal action to nullify a nondisclosure agreement regarding her alleged affair with President TrumpDonald John TrumpSunday shows preview: Trump sells U.N. reorganizing and Kavanaugh allegations dominate Ex-Trump staffer out at CNN amid “false and defamatory accusations” Democrats opposed to Pelosi lack challenger to topple her MORE more than a decade ago. 
 
Avenatti has said that all of his legal fees are paid by Clifford and a crowd-funding website that urges supporters to contribute to their efforts. 
 
The lawyer has become a constant presence on cable news networks, where he often disparages the lawyers for Trump and hints at new developments in the legal case.