United States District Court Central District of California

Case 8:18-cv-01644-VAP-KES Document 93 Filed 06/19/19 Page 1 of 5 Page ID #:2482
1 BRIAN WEISS
Court Appointed Receiver
2 Force Ten Partners, LLC
20341 S.W. Birch Street, Suite 220
3 Newport Beach, CA 92660
Tel: 949-357-2368
4 Email: bweiss@force10partners.com
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UNITED STATES DISTRICT COURT
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CENTRAL DISTRICT OF CALIFORNIA
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In re Case No. 8:18-CV-01644-VAP-KES
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EAGAN AVENATTI, LLP RECEIVER’S THIRD INTERIM
13 REPORT
Debtor
14 Date: No Hearing Required
Time:
15 Place:
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RECEIVER’S THIRD INTERIM REPORT

1 Pursuant to the Joint Stipulation between Judgment Debtor Eagan Avenatti,

2 LLP (“EA”) and Michael Avenatti (“Avenatti”) and Judgment Creditor Jason Frank
3 Law, on February 13, 2019, I (Brian Weiss) was appointed as the Receiver of EA
4 (the “Appointment Order”) [Docket No. 53]. This is my report for the period ended
5 May 31, 2019.
6 The purpose of this report is to provide:
7 • A narrative of material events;
8 • A financial report;
9 • An accounting of the income and expenses incurred in the
10 administration of EA, including the Receiver’s fees and expenses.
11 Efforts by the Receiver to Identify, Quantify and Recover Assets and Material
12 Events
13 • EA’s existing Litigation cases – identify, filing of notices/liens, transition,
14 obstacles from Avenatti;
15 • Moved to replace EA and Avenatti as class counsel in Bahamas Surgery
16 Center, LLC v. Kimberly Clark, et al. A second set of attorneys (Messers. William
17 C. Hearon and Ahmed Ibrahim) who had worked on this case with Avenatti and
18 supported by Avenatti also filed an application to replace EA and Avenatti as class
19 counsel (because the case currently is on appeal in the Ninth Circuit). The Hearon
20 and Ibrahim motion for an indicative ruling appointing them as new lead case
21 counsel in the place of EA and Avenatti was approved by District Judge Dolly M.
22 Gee on May 23, 2019. EA has the right to assert a quantum meruit claim for
23 attorney’s fees in the case and I intend to assert that claim at the appropriate time;
24 • I have performed extensive analyses of EA banking transactions and
25 identified approximately fifty parties that may have received fraudulent transfers.
26 Landau Gottfried & Berger LLP (“LGB”) has begun sending demand letters to the
27 recipients of fraudulent transfer claims under applicable State laws to recover such
28 transfers and also is in the process of answering questions of and requesting
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1 information from those recipients regarding the transfers. Those communications

2 are continuing;
3 • I consulted with LGB concerning the resolution of potential claims against
4 the receivership estate. During May, 2019, LGB was able to resolve litigation with
5 a landlord in which Avenatti asserted that EA had rights to occupy office space that
6 the landlord was seeking to recover. That resolution resulted in my agreeing that
7 EA did not claim possessory right in the space and the landlord dismissed its claim
8 for possession and damages against EA. In another matter, after consultation with
9 LGB, I was able to obtain the dismissal of a motion to compel filed by former co-
10 counsel with EA based on Avenatti’s failure on EA’s behalf to respond to long
11 outstanding discovery in a case in which the former co-counsel and EA sued each
12 other;
13 • I also worked with LGB to resolve the estate’s claim relating to a Honda jet
14 indirectly owned by Avenatti and a third-party which has been seized by the IRS to
15 pay taxes claimed as owed by Avenatti. EA had used its funds to pay part of the
16 purchase price of the jet and, for that reason, my counsel and I believe the estate has
17 a right to recover that sum upon the sale of the jet. Discussions regarding the sale
18 of the jet and the resolution of competing claims against the anticipated sale
19 proceeds by various parties, including the IRS, are continuing.
20 • Based on my assessment, as of the date of this report, and subject to further
21 investigation, the key assets potentially available for recovery include:
22 • Recoveries from active client cases, most of which are contingency-
23 based;
24 • Artwork and office furniture, which may be subject to an enforceable
25 Asset Purchase Agreement by which X-Law Group purportedly
26 purchased those assets from EA. Certain of the assets also may be
27 subject to a Superior Court Order and a Marital Dissolution Agreement
28 between Avenatti and his former spouse, Lisa Storie-Avenatti;
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1 • EA funds used to purchase an interest in the Honda jet owned by

2 Passport 420 (an entity in which Avenatti claims an ownership
3 interest).
4 • In June 2019, I plan to file a motion to authorize the sale of these assets, as
5 well as art work held in another storage facility (Avenatti’s former spouse (Lisa
6 Storie-Avenatti) claims an ownership interest in at least some of the art work).
7 Financial Report
8 As of May 31, 2019, I am holding pursuant to the Appointment Order $2,000

9 in cash. As of the date the Appointment Order, EA did not have cash in its bank
10 accounts.
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Summary of EA’s Monthly Income and Expenses
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From the date of the Appointment Order through May 31, 2019, the EA
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receivership estate has incurred no operating costs. The professional fees incurred
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during this time period include the following:
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Fees & Costs
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Professional Incurred Fees Paid Total Fees Due
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Receiver & Force May 2019 $0 $125,882.18
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Ten Partners, LLC $13,156.80
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See Exhibit A
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Landau Gottfried & May 2019
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Berger LLP $66,799.47 $0 $216,122.27
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As described in this report, I am continuing to carry out my court-ordered
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duties and my efforts are ongoing. I will report all material developments in future
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reports.
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This report contains information that is subject to my continuous review, and
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1 every effort will be made to advise the recipients of any significant changes or
2 corrections.
3 I hereby declare that this report is accurate to the best of my knowledge.
4 Executed at Newport Beach, California on June 14, 2019.
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BRIAN WEISS, RECEIVER
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Case 8:18-cv-01644-VAP-KES Document 93-1 Filed 06/19/19 Page 1 of 5 Page ID #:2487
1 EXHIBIT A
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INVOICE
From Force 10 Partners
20341 SW Birch, Suite 220
Newport Beach, CA 92660
(949) 357-2360
www.force10partners.com
Invoice For Eagan Avenatti, LLP Invoice ID 1040

Receivership
Invoice Date 05/31/2019
Due Date 05/31/2019 (upon receipt)
Subject Professional services rendered.
Item Type Description Time (in Rate Amount

hours)
Service 05/01/2019 - Business Operations / Brian Weiss: Telco with JR 0.30 $495.00 $148.50
re: case matters.
Service 05/01/2019 - Business Operations / Brian Weiss: Telco with JF 0.20 $495.00 $99.00
re: subpoenas issued.
Service 05/01/2019 - Business Operations / Brian Weiss: Read and 0.30 $495.00 $148.50
provide edits to BSW declaration re: KC case.
Service 05/01/2019 - Business Operations / Brian Weiss: Telco with n 0.20 $495.00 $99.00
re: outstanding invoices.
Service 05/01/2019 - Business Operations / Brian Weiss: Create profile 0.20 $495.00 $99.00
and review forms for 401k plan termination.
Service 05/03/2019 - Business Operations / Brian Weiss: Read MA's 0.20 $495.00 $99.00
reply to Receiver's reply to sanctions hearing.
Service 05/03/2019 - Case Administration / Brian Weiss: Review 0.40 $495.00 $198.00
documents, process mail.
Service 05/03/2019 - Report Preparation / Brian Weiss: Prepare 1.60 $495.00 $792.00
Receiver's report for April 2019.
Service 05/03/2019 - Business Operations / Brian Weiss: Read, edit and 0.20 $495.00 $99.00
execute BSW declaration for support of FSS for the Bahamas
case.
Page 1 of 4
EXHIBIT A
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Service 05/03/2019 - Business Operations / Brian Weiss: Read 0.80 $495.00 $396.00
correspondence and telco with JR re: Int'l Church of Foursquare
litigation, stipulations re: claims against EA for alleged stolen
client trust funds.
re: litigation.
Service 05/06/2019 - Information Technology Consulting / Erik Nathan: 0.10 $375.00 $37.50
Internal discussion re: server images.
re: MA's request for forensic images of servers. Read
correspondence from MA.
Receiver's Report.
Service 05/07/2019 - Business Operations / Brian Weiss: Prepare 401k 1.90 $495.00 $940.50
plan termination forms and information for mailing of packages
to participants.
Service 05/07/2019 - Business Operations / Brian Weiss: Telco with 0.20 $495.00 $99.00
re: termination of 401k plan.
re: replacement counsel motion in Bahamas case.
reply to correspondence from re: Church of
International Foursquare issues.
Service 05/07/2019 - Business Operations / Brian Weiss: Read letter 0.30 $495.00 $148.50
from Group re: claims against EA.
Receiver's Report.
Service 05/09/2019 - Business Operations / Ellen Sprague: Prepare 0.40 $255.00 $102.00
401k letter for distribution to former employees
Receiver's Report.
prepare reply to JR re: lease issues.
Service 05/10/2019 - Business Operations / Brian Weiss: Read and sign 0.30 $495.00 $148.50
fee sharing agreement with in re: .
Service 05/10/2019 - Business Operations / Brian Weiss: Read 0.20 $495.00 $99.00
documents and prepare correspondence to JR re: same.
Page 2 of 4
EXHIBIT A
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prepare correspondence to replacement legal counsel .
Service 05/15/2019 - Report Preparation / Brian Weiss: Finalize 0.40 $495.00 $198.00
receiver's report.
Service 05/15/2019 - Preference / Avoidance Actions / Brian Weiss: 0.60 $495.00 $297.00
Read and provide comments to JR re: EA fraudulent transfer
letter. Telco with JR re: same
Service 05/16/2019 - Business Operations / Brian Weiss: Process mail. 0.30 $495.00 $148.50
Scan docs to MA and JR.
Prepare avoidance action payment research.
Telco with JR re: avoidance action against ME.
re: 401k plan termination and writ of execution
they delivered upon the plan administrator.
and re: transfer of client files.
Research supporting documentation for avoidance actions.
former client re: records.
Internal discussion to coordinate a meeting with 3rd party
forensics review.
Internal discussion. Prepare for meeting.
Service 05/20/2019 - Business Operations / Brian Weiss: Telco with J. 0.30 $495.00 $148.50
Reitman re: former client document production. Read letter re:
same.
Review forensic images to prepare for meeting. Call with
. Internal discussions.
re: termination of 401k plan.
Service 05/22/2019 - Information Technology Consulting / Erik Nathan: 5.80 $375.00 $2,175.00
Meeting with 3rd party forensics expert to retrieve agreed data.
Page 3 of 4
EXHIBIT A
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Service 05/22/2019 - Business Operations / Brian Weiss: Read writ of 0.40 $495.00 $198.00
execution received and telco with J. Reitman re: same.
Service 05/23/2019 - Business Operations / Brian Weiss: Telco with J. 0.30 $495.00 $148.50
Reitman re: jet interests and discussion with the DOJ.
Service 05/23/2019 - Business Operations / Brian Weiss: Read ruling 0.30 $495.00 $148.50
re: replacement counsel (Bahamas).
Service 05/26/2019 - Asset Disposition / Brian Weiss: Read and provide 1.30 $495.00 $643.50
edits to asset sale motion. Send edits to JR. Research brokers.
re: replacement counsel and asset dispositions.
Service 05/29/2019 - Asset Disposition / Brian Weiss: Telco with J. 0.20 $495.00 $99.00
Reitman re: asset sales and avoidance actions
Service 05/29/2019 - Asset Disposition / Brian Weiss: Analyze and 0.20 $495.00 $99.00
respond to J. Reitman for reply to avoidance
actions.
Followup meeting with 3rd party forensics individual to complete
data acquisition request.
Expense 05/10/2019 - Office Supplies / Brian Weiss: Printing of 401k 1.00 $25.90 $25.90
termination packages.
Expense 05/10/2019 - Postage / Ellen Sprague: Postage Expense for 1.00 $10.40 $10.40
401k mailing
Amount Due $13,156.80
Notes
Please contact Force 10 for electronic payment information.

EIN# 81-2745810
Page 4 of 4
EXHIBIT A
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Case 8:18-cv-01644-VAP-KES Document 93 Filed 06/19/19 Page 1 of 5 Page ID #:2482

RECEIVER’S THIRD INTERIM REPORT

1 Pursuant to the Joint Stipulation between Judgment Debtor Eagan Avenatti,

1 information from those recipients regarding the transfers. Those communications

1 • EA funds used to purchase an interest in the Honda jet owned by

8 As of May 31, 2019, I am holding pursuant to the Appointment Order $2,000

Invoice For Eagan Avenatti, LLP Invoice ID 1040

Due Date 05/31/2019 (upon receipt)

Subject Professional services rendered.

Item Type Description Time (in Rate Amount

Amount Due $13,156.80

Please contact Force 10 for electronic payment information.

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