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Tax,
Criminal

Feb. 13, 2023

Prosecutors want IRS to give one of Avenatti's victims $1.5M

The Internal Revenue Service acknowledges that the money Avenatti used to get Eagan Avenatti LLP out of bankruptcy is directly traceable to the funds stolen from beauty YouTuber Michelle Phan.

Federal prosecutors submitted an ex parte application Thursday for the return of $1.5 million that Michael J. Avenatti stole from a client to pay a tax bill so that his law firm could be dismissed from bankruptcy proceedings.

The Internal Revenue Service acknowledges the money Avenatti used to get Eagan Avenatti LLP out of bankruptcy is directly traceable to the funds stolen from beauty YouTuber Michelle Phan, wrote Assistant U.S. Attorney...

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