A federal bankruptcy judge issued a restraining order yesterday to block the firm of Michael Avenatti, the lawyer for porn star Stormy Daniels, from spending any fees it collects while it owes more than $10 million in unpaid debts and back taxes, the Los Angeles Times reported. The move by Judge Catherine Bauer of U.S. Bankruptcy Court in Santa Ana was a severe blow to Avenatti, whose personal financial troubles have deepened as his star has risen on cable news. Bauer’s order covers fees from 54 court cases, including the suit that Daniels filed against President Trump to void the nondisclosure pact that bars her from talking about their alleged 2006 sexual encounter. His Newport Beach, Calif.-based firm, Eagan Avenatti, emerged from chapter 11 protection in March after reaching agreements to pay its creditors. But Avenatti soon broke his promise that the firm would meet a May deadline to pay the Internal Revenue Service $440,291 in back taxes, penalties and interest. The firm also missed a $2-million payment, personally guaranteed by Avenatti, to Jason Frank, a lawyer who used to work there. As a result, Frank won a $10-million judgment against Eagan Avenatti.
