Avenatti questions credibility of lawyer who referred him cases

Michael J. Avenatti, defending himself against federal charges that he stole $10 million of client settlement money, spent much of Wednesday trying to shred the credibility of an attorney who referred cases to him.

Filippo Marchino of X-Law Group testified late Tuesday that millions of dollars went missing from settlements in two cases he referred to Avenatti. Under cross examination, Avenatti painted Marchino as a thief and a liar who nearly lost his bar license and is now testifying for the government under an immunity deal.

Avenatti repeatedly questioned Marchino about the circumstances surrounding a lawsuit in which the actor Jim Carrey accused Marchino of extortion and fraud. The Carrey dispute is not a part of the federal government's case against Avenatti.

"Isn't it true as a result of that case you were sued for fraud and extortion by Jim Carrey?" Avenatti asked. "Isn't it true they attempted to take your bar license away for your conduct in that case?"

Marchino represented the actor's former girlfriend, Cathriona White, who committed suicide. Marchino represented White, her husband and her mother in a lawsuit against Carrey. Carrey accused Marchino in his own lawsuit of threatening to go public with claims that the actor gave White sexually transmitted diseases unless Carrey paid money.

"Isn't it true you lied in connection with the Jim Carrey case?" Avenatti asked.

All three questions were met with government objections sustained by U.S. District Judge James V. Selna, but Avenatti kept bringing up the lawsuit.

For a second time in the trial, Avenatti appeared to open the door for prosecutors to question him about events that the judge has ruled would not be admissible in this case. Last week, Avenatti began asking his former paralegal about meetings with prosecutors in New York. He narrowly escaped a ruling that would have allowed the jury to hear about his conviction in New York for trying to extort $20 million from Nike Inc.

On Wednesday, Avenatti brought up allegations against Marchino that were part of the bankruptcy proceedings of the Eagan Avenatti law firm.

Assistant U.S. Attorney Brett Sagel warned that it would open the door for prosecutors to tell the jury about bankruptcy-related charges Avenatti is facing this fall.

"You're not putting yourself forward as a witness, are you?" Selna asked Avenatti.

Avenatti told the judge that Carrey's attorney, Raymond Boucher, told Avenatti that he knew records Marchino provided in that case were doctored. The bankruptcy trustee also accused Marchino of fraud, which goes directly to his trustworthiness, Avenatti told the judge.

"Mr. Boucher said he doubted I had anything to do with it, had known me for a long time, and knew how I practiced law," Avenatti said.

That was met with a loud snicker from Sagel.

"You know Mr. Sagel, I don't think your laughing is appropriate, frankly," Avenatti snapped, adding that this was a serious criminal case.

"It's more serious than any other criminal case in the country, I agree," Sagel quipped sarcastically.