The State Bar of California’s investigation into attorney Michael Avenatti regarding allegations of professional misconduct has concluded, determining no “further action” is warranted.
The investigation began after a complaint was filed in March by attorney David Nold regarding Avenatti’s purchase of coffee chain Tully’s Coffee through Global Baristas, and alleged that Avenatti and Global Baristas failed to pay approximately $5 million in federal taxes. According to the complaint, the government wasn’t paid the taxes even though they were withheld from employees’ paychecks.
But in a letter sent to Avenatti’s attorney last week, the State Bar of California determined that no additional steps are necessary for the investigation.
“The State Bar has completed the investigation of the allegations of professional misconduct reported by David Nold. We have determined that this matter does not warrant further action,” California State Bar investigator Joe Nunley wrote. “Therefore, the matter is closed.”
The letter was shared on Twitter on Tuesday by Avenatti, who represents porn star Stormy Daniels in her high-profile legal battle with President Trump over an alleged affair.
“I said at the time that the accusations were politically motivated and baseless,” Avenatti tweeted Tuesday evening. “And I was right. I was just cleared. #Basta.”
Nold told Fox News that “public records still list Mr. Avenatti as controlling the company, and nobody has risen up to claim ownership or responsibility as his successor.”
“Contrary to the malicious and personal attacks leveled against me for filing the grievance, my motivation has always been solely to bring justice to the government and citizens of Washington state that were victimized by the undisputed and colossal failure of Global Baristas US, LLC,” Nold said in a statement. “Mr. Avenatti has himself claimed that he profited from the sale of the company to the tune of millions of dollars. In turn, there remain unanswered questions regarding what happened to the millions of dollars generated by the company that never reached employees, landlords, or various levels of government.”
Avenatti previously claimed that he was never a “member” of Global Baristas US LLC, although the Seattle Times reported this year that a 2017 court document showed Avenatti admitted he was was a “principal” of the entity.
Instead, Avenatti has claimed he was involved with Global Baristas US LLC’s parent company, Global Baristas LLC, and was never “responsible for any taxes for Global Baristas US LLC.”
