State Bar again delays Avenatti’s license deactivation hearing

A State Bar judge has delayed Michael J. Avenatti's license deactivation hearing for the third time after his lawyers said they have only "a fraction of the files, documents and emails that he needs for his defense."

The hearing is now scheduled for Nov. 21 and 22, but the discovery disputes that have already thrice delayed it could continue, with his lawyers describing a series of setbacks that have yet to be resolved.

Federal prosecutors released 30,000 pages on Friday, which will take "approximately 10 days" to review, and they're still gathering remaining emails that "will not be provided to Mr. Avenatti until late next week at the very earliest," according to an email to Judge Yvette D. Roland from Art Barsegyan, an associate at Pansky Markle Attorneys at Law.

Avenatti's lead counsel for the bar matter, Ellen A. Pansky, attended the status conference Monday as did co-counsel Thomas D. Warren of Pierce Bainbridge Beck Price & Hecht LLP.

The delay comes as Avenatti is due in Los Angeles County Superior Court on Oct. 18 for the continuation of his judgment debtor exam related to $5 million he owes his former law partner, Jason M. Frank.

The exam began before he was indicted on cross-country criminal charges alleging theft of client funds, but Avenatti thwarted the continuation of it after his arrest by invoking his fifth Amendment right against self-incrimination.

However, Los Angeles County Superior Court Judge Edward B. Moreton Jr. on Sept. 30 ordered the exam reopened after learning Avenatti recently paid $18,000 for high-end artwork at a sheriff's auction. The art originally belonged to Avenatti, but his ex-wife obtained it through their divorce and was to sell it to recoup some of the money he owes her. Avenatti gave the art to his other ex-wife after he got it back at the auction, in exchange for $20,000 credit on what he owes her, according to a declaration from Avenatti.

Avenatti's lawyers from Pierce Bainbridge told Moreton he'll invoke the Fifth again if the exam continues, but Moreton said Avenatti may have already waived his right to do so through his declaration and actions. The judge said he'll decide about objections on a question by question basis.

The issue has caught the attention of the U.S. attorney's office: Brett A. Sagel, one of two federal prosecutors on Avenatti's wire fraud cause before U.S. District Judge James V. Selna attended a recent hearing in U.S. Bankruptcy Court.

-- Meghann M. Cuniff