Hey, here is the fact about Democrat’s con hero Michael Avenatti. His past is littered with lawsuits, jilted business partners and bankruptcy filings. People who have worked with the lawyer described him as ruthless, greedy and unbothered by ethical questions.
Avenatti had a failed venture as he owned Tully’s Coffee and later failed to pay suppliers and then was sued by his business partner, actor Patrick Demsey, who is best known for his role as Derek “McDreamy” Shepherd in the TV show “Grey’s Anatomy”. Avenatti bought the chain of the coffee chain with US$ 9 million. In March 2018, all of the Tully’s outlets abruptly were closed.
Tully’s was founded in Washington in 1992 by Tom O’Keefe. The chain grew quickly — including a 2006 franchisee deal in Japan — and attempted to set itself as an independent, scrappy rival to Starbucks. But while Starbucks thrived, Tully’s struggled to become profitable.
Tully’s parent company has faced more than 45 lawsuits in recent years, including owing the IRS $5 million in unpaid federal taxes in 2017.
David Nold, a Seattle attorney representing several Tully’s vendors, filed a complaint against Avenatti with the California State Bar on March 26, 2018 accusing him of fraud.
“In essence, he bought a company out of bankruptcy and then used it for a ‘pump and dump’ scheme to deprive federal and state taxing authorities of millions of dollars,” David Nold alleged.
Trial lawyer Robert Barnes turned up the heat on Avenatti on Twitter where Barnes alleged that Avenatti possibly committed tax-related crimes and received large sums of money in January 2018, which is around the time that the Stormy Daniels media circus kicked off.
According to Dempsey, Avenatti didn’t actually have the funds to buy Tully’s. In the suit, Dempsey claims his business adviser found out through an internet search that Avenatti had borrowed $2 million with an “exorbitant” interest rate of 15% to fund the deal, sparking Dempsey’s decision to sue his way out of the partnership.
“Avenatti concealed the Loan and the Security Agreement from Dempsey,” the complaint says.
It continues: “He provided no advance notice that he was going to cause Global Baristas to borrow two million dollars, pay an exorbitant interest rate, and secure repayment in borrowed funds by pledging all or substantially all of the company’s assets and future income.”
Seeing severe consequences, a shrewd Avenatti settled the dispute with Dempsey outside the court.
But ever since Avenatti managed introducing porn actress Stromey Daniels in the show and appeared as her unpaid attorney, his luck seems to be rolling again. He even is planning entering business ventures with some wealthy investors. Following the ‘successful’ launching of the Ms. Porn show, Avenatti has learnt the art of bringing ridiculous charges against high profile people in order to increasing his ‘face value’. And remember, this fraud is the 2020 presidential nomination aspirant of the Democratic Party.
Sohail Choudhury is the Executive Editor of Blitz.
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