Today is Day 10 of the #MichaelAvenatti embezzlement trial.
Coming on the heels of new CDC guidance to stop the spread of the #DeltaVariant, Judge Selna is now requiring masks be worn in the courtroom regardless of jab status.
Coming on the heels of new CDC guidance to stop the spread of the #DeltaVariant, Judge Selna is now requiring masks be worn in the courtroom regardless of jab status.
This morning, we'll be continuing testimony of Judy Regnier, a former Eagan Avenatti paralegal.
Catch up on my coverage here:
law360.com/articles/14070…
Catch up on my coverage here:
law360.com/articles/14070…
Regnier is testifying that when Ipsy paid $8.1 to YouTuber and makeup artist Michelle Phan to buy out her ownership in the makeup subscription company, Avenatti told her to use $3 million to pay a tax bill for Eagan Avenatti and cover its payroll
A month after the money came in, Phan's associate started asking where Michelle's money was.
From his email to Avenatti and Regnier: "There is $8 million of Michelle’s money in the ether somewhere. We have been given the runaround for over six weeks.”
From his email to Avenatti and Regnier: "There is $8 million of Michelle’s money in the ether somewhere. We have been given the runaround for over six weeks.”
Regnier said Avenatti instructed her to tell Phan's associate that she had put a trace on the wire and that she'd let him know what she learned.
"This was him making me be the scapegoat for whatever he was doing.”
"This was him making me be the scapegoat for whatever he was doing.”
Eventually, Regnier said Avenatti instructed her to send Phan $4.1 million. She said there wasn't enough money in the firm's account to send Phan all $8.1 million.
Regnier said she learned Phan was still owed more money from a letter that was sent to Avenatti saying Phan was entitled to an additional $4 million.
She said she believed Avenatti would handle the problem.
She said she believed Avenatti would handle the problem.
Then, Regnier said she was contacted by the Newport Beach Police Dept. regarding the wire transfers for Phan. Avenatti, again, said he would handle it.
It was then that Regnier said she understood that Phan was accusing Avenatti of stealing her $4 million.
It was then that Regnier said she understood that Phan was accusing Avenatti of stealing her $4 million.
Other than her salary at Eagan Avenatti, Regnier said she never received any extra money or benefits from the four settlements at issue in this case.
Prosecution has stepped down. It's Avenatti's turn for cross now.
Prosecution has stepped down. It's Avenatti's turn for cross now.
On cross, Regnier said her salary at Eagan Avenatti was $90,000 to $185,000 per year and was the highest paid employee, apart from the attorneys.
She said Avenatti was generous to her and the other firm employees.
She said Avenatti was generous to her and the other firm employees.
On March 25, 2019, Regnier said about 11 armed federal agents executed a search warrant at her home. She said they "banged on her door" and took her outside.
"And there was a helicopter overhead."
"And there was a helicopter overhead."
Regnier said prosecutor Brett Sagel was also there and told her they hadn't decided whether to charge her with anything. But she said that wasn't her main concern at the time.
“I was scared to death to have 11 people barge into my home. I was there by myself.”
“I was scared to death to have 11 people barge into my home. I was there by myself.”
Regnier said she was told she wasn't a target for charges because she didn't receive any of the allegedly stolen money
Sorry folks, the testimony has gotten a little dry.
Avenatti is taking Regnier through all the transactions at issue in the case
Avenatti is taking Regnier through all the transactions at issue in the case
I'm going to wrap it up there for today, but join me again tomorrow as hear even more from Ms. Regnier. Hopefully we get to a new witness, as well.
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