Michael Avenatti Has His Firm Maneuvering Into Bankruptcy
Michael Avenatti was plummeting into huge financial trouble last year when he was saved by Jerry Tobin out of the blue.
From Police records, Tobin long arrest records are glaring along with his rather peculiar Mohawk in his mug shots. Tobin walked into a UPS store in Orlando, placed two $100 bills and got himself a mailbox.
With his anonymous address, the next day, Tobin filed a court petition to push Eagan Avenatti, Avenatti's law firm into bankruptcy. Tobin claimed the firm owed him $28,700.
This was what Avenatti needed, exactly the kind of rescue he required.
This bankruptcy brought an automatic halt to a high-stakes arbitration involving Eagan Avenatti and Jason Frank who used to work in the firm. If Avenatti's firm lost, it could have been led to pay more than $14 million to Jason Frank.
Karen Jennemann the U.S Bankruptcy Judge immediately saw a red flag and questioned if Eagan Avenatti was conspiring with Tobin in order to slow down the arbitration.
She quickly dismissed Tobin's claim and called him a "screwy small creditor" who wasn't learned enough to implement the very rarely use involuntary bankruptcy process.
Looking at it, Tobin's petition looked to have a very shaky legal footing; such an involuntary bankruptcy usually needs the combination of at least three creditors.
But even with that, Eagan Avenatti didn't bother to have the petition dismissed. Rather, it mentioned to the court that it had difficulty paying its bills and as such, had to enter bankruptcy. Going in that vein, the firm ended the arbitration with Frank.
Although, there was still the mystery as to why Tobin ended up in a Bankruptcy Court
Avenatti gave a testimony last year that Tobin "was involved in some private investigatory work for the law firm" but didn't give any specifications.
Tobin, 48, has a very interesting police record in central Florida which includes burglary cases and narcotics. He declined to give any comment to a reporter outside his home in Orlando.
"I am not giving out any information," he said
Later a statement from Tobin was released by Avenatti. Tobin declined to affirm if he had signed the statement.
Minutes after Tobin none-confirmation was put before Avenatti, Tobin sent an email to claim the statement was in fact signed by him.
The law firm had earlier hired his services in June of 2016 to gather the necessary evidence for a potential lawsuit involving victims of the pulse nightclub shooting in Orlando, Tobin later said. To him, the reason why he filed the petition was that he was upset Eagan Avenatti didn't want to pay his bill
"I had to do it because I read that taking such action often results in getting a debt paid swiftly whilst placing the target in a great pressure to find solutions to the issue," Tobin said.
On his own part, Avenatti denies he ever spoke with Tobin although he did acknowledge that persons in his firm spoke with Tobin. He refuted the firm conspired with Tobin to place the bankruptcy petition.
"No evidence exists and it never occurred," he said.
For more information on Maneuvering Into Bankruptcy, contact us at the Segaul Law Firm today.