Attorney Avenatti Sued Over 'Theft' of Client's Settlement Money

ORANGE COUNTY, CA -- A former client of attorney Michael Avenatti, who won a $4 million settlement with Avenatti's help after suffering injuries while in custody that left him a paraplegic, sued the embattled attorney today for at least $9.5 million for allegedly failing to provide all of the settlement money.

Avenatti, whose practice is based in Newport Beach, is best known for representing the adult film actress known as Stormy Daniels in her legal battle against President Donald Trump.

In the lawsuit filed Tuesday, Los Angeles County resident Geoffrey Johnson names Avenatti and Avenatti's former law firm partners and associates.

Johnson, while suffering from unspecified mental health issues in April 2011, was arrested by Los Angeles County sheriff's deputies, according to Johnson's attorney Daniel Callahan. Johnson was twice ``driven'' to attempt suicide as a result of ``abuse'' from deputies while in custody, Callahan said.

Johnson jumped from the second floor of the jail and was left paralyzed from his injuries, Callahan said. Johnson hired Avenatti, who sued on Johnson's behalf and won a $4 million settlement from the County in January 2015, according to Callahan.

But instead of giving the money to his client, Avenatti kept the money and then "engaged in a four-year cover up,'' Callahan alleged at a news conference on Thursday. Avenatti is already facing criminal charges in Santa Ana federal court that include allegations of embezzling Johnson's money.

Referring to his status in the indictment as ``Client 1,'' Johnson told reporters, ``I'm a real person with real feelings and real problems. I'm going to spend the rest of my life in a wheelchair... and I cannot support myself the way I want to.''

Avenatti sent a statement to City News Service declaring the allegations in Callahan's lawsuit to be "categorically false and frivolous."

"His case will be thrown out of court,'' Avenatti said.

Avenatti allegedly falsely told Johnson that part of the settlement included a trust that would dole out his money in $1,900 monthly payments, Callahan said. Avenatti allegedly convinced Johnson to sign a document certifying a ``special needs trust,'' a confidentiality agreement and a ``blurb saying he was an ethical attorney who served him well,'' Callahan claimed.

Callahan said Avenatti's conduct ``on a scale of 1 to 100... ranks a thousand. It's off the charts bad. It is hideous.''

Avenatti, however, said that Johnson ``previously agreed on numerous occasions, including in multiple detailed writings which he reviewed, initialed and signed (after a different lawyer reviewed), that I conducted myself ethically at all times, he was kept informed about all aspects of his case, he was provided all monies when due, he had been advanced huge sums for his living
and medical expenses, he had received a proper accounting, and he was extremely thankful for my assistance, which was provided after no other lawyer would take his case.''

Avenatti added that ``Any claim that Mr. Johnson was `tricked' into signing documents that he fully read and understood is absurd.''

Avenatti said his legal team ``paid his medical expenses and living expenses for years prior to any settlement. And we provided him with settlement monies after we deducted our contingency fee and the huge costs associated with his case as we were entitled to. He clearly is disturbed and it is unfortunate that he is being used by his Republican Trump supporter lawyer and others as part of a `pile on' publicity stunt to smear me.''

Avenatti provided documents showing Johnson's initials on documents saying that his attorneys in the settlement ``acted diligently and ethically'' and that he was fully informed about the terms of the settlement.

The lawsuit also names Avenatti's former partner Michael Eagan as well as other attorneys in the firm, including Jason Frank and Scott Sims and paralegal and office manager Judith Regnier.

In addition to the $9.5 million, Johnson is seeking punitive damages to be determined later.

Eagan and Frank have yet to respond to requests for comment.

City News Service contributed to this report.