THE STATE BAR OF CALIFORNIA CALIFORNIA ATTORNEY COMPLAINT FORM Read instructions before filling in this form. Please mail to: Office of Chief Trial Counsel intake Dept., State Bar of California 845 South Figueroa Street, Los Angeles, California 90017-2515 (1) Your contact information: Your name: David A. NOICI Your address: 10500 NE 8th Street, Suite 930 Your city, state zip code: Bel'evue? WA 98004 Your email address: dnold@noldmuchlaw.com Your telephone numbers: Home Work (425) 289-5555 Cell (2) Attorney?s contact information: Please provide the name, address and telephone number of the attorney(s) you are complaining about. (NOTE: If you are complaining about more than one attorney, please use a separate form or include on a separate sheet for each attorney the information requested in items #2 through Attorney?s name: Michael John Avenatti Attorney?s address: 520 Newport Center Drive, Suite 1400 Attorney's city, state zip code: BeaCh- CA 92650 Attorney?s telephone number: (949) 706-7000 Attorney's California bar license number: 206929 (3) Have you or a member of your family complained to the State Bar about this attorney previously? Yes I: (4) Did you employ the attorney? Yes NOE If ?Yes," give the approximate date you employed the attorney and the amount, if any, paid to the attorney. Date employed: Amount paid (if any): If what is your connection with the attorney(s)? Explain briefly. (5) Include with this form (on a separate piece of paper) a statement of what the attorney(s) did or did not do that is the basis of your complaint. Please state the facts as you understand them. Do not include opinions or arguments. If you employed the attorney(s), state what you employed the attorney(s) to do. Sign and date each separate piece of paper. Additional information may be requested. (Attach copies of pertinent documents such as a copy of the fee agreement, cancelled checks or receipts, and relevant correspondence.) (6) If your complaint is about a lawsuit, answer the following, if known: a. Name of court (For example, Superior Court and name of the county) b. Title of the suit (For e):ample, Smith v. Jones) 0. Case number of the suit d. Approkimate date the suit was filed e. If you are not a party to this suit, what is your connection with it? Explain briefly. (7) Size of law firm complained about: 1 Attorney .. 2 10 Attorneys 11 Attorneys Government Attorney El Unknown (8) Translation Information: Not Applicable If you require that the State Bar utilize formal translation services in order to process your complaint, it may delay our communications with you. Is someone available to provide translation assistance for you so that the State Bar may communicate with you in English? Yes No If state the language in which you need formal translation: Date: ?0 I 5/ Signature . NOLD MUCHINSKY PLLC Attorneys at Law David A. Nold Bellevue Place, Suite 930 TEL: 425-289-5555 dnold@noldmuchlaw.com 10500 NE 8th Street FAX: 425-289-6666 Bellevue, Washington 98004 March 26, 2018 VIA FACSIMILE: (213) 765-1168 AND FIRST CLASS MAIL State Bar of California Of?ce of Chief Trial Counsel Intake 845 South Figueroa Street Los Angeles, CA 90017-2515 Re: Bar Complaint against Michael John Avenatti, Bar #202929 To Whom It May Concern: I write to supplement the Attorney Complaint Form accompanying my submission to you against Michael John Avenatti. I am an attorney licensed in Washington. I represent Bellevue Square, LLC in King County (Washington) Superior Court Cause Number 15-2-27043-5 SEA, Be?evue Square LLC v. Global Bar?is?t?as US, LLC at at. In the course of that litigation, I learned facts implicating Mr. Avenatti?s ?tness to practice that I believe, based on my own ethical duties, I am obligated to report to you. This is just one small piece of what Mr. Avenatti has done in connection with Global Baristas US, LLC (?Global?) in the State of Washington antithetical to a license to practice law in any jurisdiction. In essence, he bought a company out of bankruptcy and then used it for a ?pump and dump? scheme to deprive federal and state taxing authorities of millions of dollars. According to the Washington Post, he ?made a pro?t? on selling the company and that he ?exited at the right time.?1 Here is what he left behind. A. Federal Withholding Taxes. An employer withholds taxes from the paychecks of its employees. These are funds earned by the employee, but held in trust by the employer. Not to pay this money to the federal government subjects the employer to personal liability for the funds wrongfully retained. It also subjects the individual responsible to criminal liability.2 1 Exhibit 1. 2 See, 26 U.S.C. Sec. 3102 et seq. State Bar of California Of?ce of Chief Trial Counsel Intake March 26, 2018 Page 2 Attached as Exhibit 1 is a Notice of Federal Tax Lien to Global Baristas US LLC and Michael Avenatti personally for unpaid Section 941 taxes. This obligation is for A month later, another Notice was ?led for $59,145.14 in unpaid Section 940 taxes. (Exhibit 2.) Again: this obligation re?ects funds that belonged to Global?s employees and converted by Avertatti. B. State Tax Obligations. Avenatti also blatantly ignored several obligations to the State of Washington. 1. Department of Revenue. Businesses in Washington State owe tax based on the amount of revenue generated. Global's failure to pay these taxes resulted in the issuance of three tax warrants between July and November 201?. (Exhibits 3-5.) These total $649,376.09. 2. Department of Labor Industries. Businesses in Washington State are required to pay into a system where by employees injured while working obtain compensation. Global?s failure to pay these taxes resulted in the issuance in three tax warrants in 20] 7. (Exhibits 6-8.) These total $150,329.07. C. Payment of Global Baristas US, LLC Funds for Law Firm Bankruptcy. Eagen Avenatti, LLP was forced into bankruptcy by a creditor. In that bankruptcy, on April 6, 2017, Ayenatti executed an Application to Employ Baker Hostetler LLP as its counsel. In that application, Avenatti admitted to using Global?s funds for his personal use (though his law On March 15, 2017', Global Baristas US, LLC (?Global paid a retainer to of $100,000 for fees and expenses incurred on behalf in connection with this case (?Initial $100,000 Retainerbefore April 12, 2017, Global US shall pay an additional retainer to This $200,000 paid to from Global US is not a loan to EA, and EA is under no obligation to repay Global US for any portion of the $200,000. Global US is a limited liability company formed in the State of State Bar of California Of?ce of Chief Trial Counsel Intake March 26, 2018 Page 3 Washington. Global US is owned by Global Baristas, LLC which is also a limited liability company formed in the state of Washington. Michael Avenatti holds interests in through Doppie, Inc. (?Doppie?), a Delaware corporation. Neither Global US, nor Doppio are creditors or equity security holders of The business of Global US. . . . [is] entirely unrelated to the business of EA, which operates a law firm. (Exhibit 9, pp. 3-4, emphasis added.) Thus, he admits that he committed Global?s funds to his bankrupt law ?rm with connection in their business operations and no duty to repay the money. All this while Global is in breach of its federal and state tax obligations. D. Avenatti?s Continued Control over Global Baristas US, LLC. Avenatti?s public claims to have sold Global are contradicted by his deposition testimony. He testi?ed that ?Avenatti Associates, owns Doppie, LLC. He testi?ed that Doppie owned at least 80% of Global Baristas. (Exhibit 10, dep. p. 187.) He reiterated this position in a second deposition on July 21, 2017. (Exhibit 11, dep. p. 6.) Meanwhile documents ?led with the Washington Secretary of State as of arch 26, 2018 list the sole governor of Global Baristas, LLC to be Michael Avenatti. (Exhibit 12.) The sole governor of Global Baristas US, LLC is listed as Global Baristas, LLC. (Exhibit 13.) All of the Tully?s coffee shops are now closed. E. Conclusion. Michael Avenatti?s actions in connection with Global Baristas US, LLC have caused significant damage to the State of Washington, the federal government, and numerous private entities. They subject him to personal and criminal liability. And they implicate his ?tness to practice law. Bellevue Square relentlessly pursued the books and records of Avenatti?s operation in its judgment collection efforts. Avenatti defied multiple court orders in connection with these records, until a forensic imager was literally outside a locked door to Global?s Seattle of?ces. At that time, Avenatti elected to pay over a million dollars in judgments rather than permit the investigation to continue. A governmental agency interested in policing the legal profession and defend our tax coffers should be very interested to review these records, or hear Mr. Avenatti?s explanations for why he should not have to produce them. State Bar of California Of?ce of Chief Trial Counsel Intake March 26, 2018 Page 4 Thank you for your attention to this matter. Please let me know if I can be of any further assistance. Ve trulyr yours, Dawd A. Nold Exhibitsi?Ai?hi?Ii?I Washington Post article, March 25, 2018 Notice of Federal Tax Lien (941) Notice of Federal Tax Lien (940) Warrant for Unpaid Taxes (?led 10/24:? 17) Warrant for Unpaid Taxes (?led 222/1 3) Warrant for Unpaid Taxes (?led 35! 18) Warrant (Labor Industries) (?led 3/17) Warrant (Labor 35 Industries) (?led an 6/17) Warrant (Labor 8.: Industries) (?led 1 1/30/ 17) Application to Employ Baker 85 Hostetler LLP Avenatti Deposition Transcript (10f4f16) Avenatti Deposition Transcript (7/21/1 Washington Secretary of State Business Information: Global Baristas, LLC Washington Secretary of State Business Information: Global Baristas US, LLC '3 lt'l?l?nd . A ?l .kn Inn-nau- lnll:l\l nu n-nnl'rlanl'l' Thu nah! Lu'l he Post Style Michael Avenatti, the adrenaline- fueled lawyer taking on President Trump EXHIBIT PAGE I 431:3. NEW YORK In the small hours on the morning of his 4lst birthday, lawyer Michael Avenatti lay restless at his home in NeWport Beach, Calif. He was waiting on an email, and it ?nally arrived, with brain-rattling force, around 5:30 a.m. A court in New Jersey had reversed a $41 million verdict he'd won against the accounting giant KPMG in a case involving allegations of massive auditing fraud. Avenatti, who thought of himself as the Killer,? had missed the earlier-than- expected birth of his ?rst daughter while doing depositions in the case on the opposite coast; he?d burned through $3 million in out?of?pocket expenses, and his ?rm stood to gain somewhere in the neighborhood of $16 million in legal fees. Now he would get nothing. ?Ninety percent of lawyers who had taken one on the chin like that, they?d be done,? Avenatti said last week over coffee at a luxury Central Park hotel. That setback in 2012 now serves as a parable of resilience in the legend Avenatti has been crafting about himself both with a string of multimillion?dollar jury verdicts and with his brash, almost nonstop cable news appearances. Avenatti is locked in a legal throwdown with the president of the United States over porn star Stormy Daniels, who appeared on ?60 Minutes? Sunday for a much-hyped interview about her alleged affair with Donald Trump and the hush money she says she received during the 2016 campaign to keep it a secret. Avenatti, who has heightened anticipation for his client?s television appearance by dribbling out hints about major revelations, has linked his reputation to the Daniels case. It is another big bet for an attorney with an enormous appetite for risk whose roster of courthouse adversaries includes mega-corporations, as well as celebrities, such as Paris Hilton and Jim Carrey. ?He is an adrenaline junkie," says Jonathan Turley, who taught Avenatti at George Washington University?s law school and has stayed in touch since his former student earned his law degree. think he needs that adrenaline rush. He lives his life aggressively. In both litigation and in life he shows a certain aggressive style.? I W. VVGQI IPUDHUUI I If IlanI-y lul?ly It? I I UI Ill l-Ll'll UI lam ?y UI 'l?nll lu'Ul lulu-ll HI I I?ll LU I I Of??f?nd I?lnhn?I A ?Ann?Allan -nlnaJ I?uun-w Inl-Ihp? run. ?aAnIAn-n-I Tun-nu HHRhI-uln??nu nth-I'd One moment Avenatti is pinballing among courtrooms across the country for high-stakes litigation, including last year?s $454 million judgment in a surgical?gown fraud case, one of the largest in California history. The next he?s delving into entrepreneurial pursuits, such as buying Tully?s, a struggling Seattle coffee-shop chain, or blasting around a track while competing as a driver in a professional racecar circuit, sometimes hitting speeds of up to 195 mph. The main photograph on his website depicts him in a race suit rather than a business suit. Avenatti, now 47, won?t say how he ended up representing Daniels beginning about six weeks ago. The porn actress and director, whose real name is Stephanie Clifford, has claimed that she had an affair with Trump in 2006 while he was a reality- TV star whose wife, Melania, had recently given birth to their son. ?Initially, I was very skeptical about getting involved because I, much like many Americans, had preconceived notions about Stormy Daniels and her motivations and what she is all about,? Avenatti says. It took him only about 20 minutes to decide that she was credible, he says, although he won?t reveal what led him to that conclusion. One thing he says he hasn?t done is examine her on-screen appearances. ?Have I ever viewed pornography? Yes,? he says. ?Have I ever viewed her work? No.? He goes on to say that ?we have in this country this Puritan, hypocritical, nonrealistic view of sex that is entirely different than the view, for instance, in Western Europe.? Avenatti?s foil in the Daniels melodrama has been Trump?s lawyer Michael Cohen, as much as the president. Cohen has said he took out a home-equity loan to pay Daniels $130,000 of his own money to keep her story of the affair secret and drafted a nondisclosure agreement. Avenatti has called Cohen?s claim that the president knew nothing of the deal ?ridiculous.? Avenatti has been daring Cohen to appear on television with him to discuss the case. He recently used an enlarged photograph of Cohen as a prop during a contentious appearance on CNN with Cohen?s attorney, David Schwartz. (Cohen and Schwartz did not respond to requests to comment for this article.) ?That was fun,? Avenatti says. The legal dispute with Daniels and Trump centers on the particulars of the porn star?s nondisclosure agreement. But Avenatti is arguing a broader case about the integrity of the president and his legal team and drawing from a well-honed playbook of using media appearances as an integral part of his strategy. ?Have I ever not been con?dent or have I ever not acted confident?? says Avenatti, whittling and reframing a question. think I?ve always acted con?dent even at times I haven?t been confident.? Brian Panish, a prominent plaintiffs attorney who has worked on cases with Avenatti, compares his former colleague to William Ginsburg, Monica Lewinsky's attorney famous for appearing on all the Sunday talk shows on the same day during President Clinton?s White House-intern sex scandal. It spawned the term ?the full Ginsburg.? I II, VI 'Vp VVHOI la lUl I II IUJ II IIUI Iqul'? VUI lull-I'll DI 'l?ll?ll lulu-ll IPILU I Ul' UUI UUI MI-I-mnl a emu?.4 ;nmnn .. nvnn'rdn?d rams ?Avenatti knows how to deal with the media,? Panish says. ?He seems to like it. You?re going to have to rename it there?s no more full Ginsburg, it?s the full Avenatti.? In the television studio, Avenatti looks right at home. He?s olive-complected, square-jawed and, on the days he doesn?t shave, he seems to have perfected the art of the fashionable five o?clock shadow. His tastes are expensive, running to tailored suits and hot rods. He won?t reveal what he drives at home in West Los Angeles, where he now lives, coyly saying he has ?a few cars that I can pick from.? On his wrist is a sleek, silver Patek Philippe watch Avenatti was born in Sacramento and lived as a young child in Utah and Colorado before the family settled in St. Louis in the midst of a hot 1982 baseball pennant race that turned him into a rabid Cardinals fan. His father worked as a liaison between wholesalers and Anheuser-Busch. After Avenatti left to attend the University of his father was unexpectedly laid off, and the son went to work to earn tuition money by doing opposition political research on Republicans and Democrats for a ?rm owned by Rahm Emanuel, the future chief of staff in the Obama White House and the current mayor of Chicago. Avenatti says he saw the ?soft underbelly of politics,? and he left the job with a ?signi?cant degree of cynicism.? In law school, he clerked at a law ?rm by day and took courses at night, ?nishing ?rst in his class. He accumulated $340,000 of student debt, which he says he later erased with the bonus for a single big verdict while he was working at a California ?rm. His cases included a $10 million defamation lawsuit, which ended in a con?dential settlement, that he ?led on behalf of a socialite client against Paris Hilton. He was also on a team of lawyers who sued Trump and the producer of ?The Apprentice? on behalf of a man who said they stole his idea for the hit show. The case ended in a settlement. But Avenatti had larger ambitions than working in an established ?rm. In 2007, he went out on his own, taking on cases that he managed as aggressively on television as in the courtroom. A lawsuit against a cemetery that allegedly disturbed existing graves to accommodate new cof?ns ended in an $80 million settlement in 2015. Another high?pro?le case a wrongful-death lawsuit in the suicide of actor Jim Carrey?s ex-girlfriend was resolved out of court. Avenatti says he?s been lead counsel on $1 billion worth of verdicts and settlements. The biggest, by far, came last year when he won a $454 million jury verdict in a case against Kimberly-Clark and Halyard Health related to claims that the companies knowingly sold defective surgical gowns that were not impermeable to Ebola and HIV, despite representations that they were. It?s a decision that could generate more than $100 million in fees for Avenatti?s legal team if it holds up to planned appeals. Avenatti, at times, has been a magnet for controversy, falling out with the ?Grey?s Anatomy? star Patrick Dempsey, a friend who brie?y partnered with him in the Tully?s coffee chain. The chain is mired in legal disputes and has been shuttering locations. But Avenatti says he made a profit how much, he didn?t reveal by selling his piece of the ?rm, and is now ?essentially the general counsel.? "Timing is everything. I exited at the right time,? he says. ?Basically, they?re just another client now.? WW I II I3 lUl lyuahbvn I II lUf-bty I IIUI Incl-a VUI DI Vllyul "\?hll lulu-ll HI I I'll LU I UVILUI I I Aim-mm an inhuman-.. nan; At the same time that he has been a ubiquitous presence on cable news sets in the Daniels case, Avenatti has also been engaged in a heated ?nancial dispute with a former law partner who?d sued, saying he was owed millions in unpaid fees. At a court hearing, a lawyer for one side characterized the level of acrimony as ?unbelievable.? But the partners have now settled the case and are back on speaking terms, and Avenatti employing a few four-letter words, as he is wont to do says the portrayal of the squabble has been ?overblown.? It comes with the territory, Avenatti says in the interview at the New York hotel. He cites an old saying about how a monkey's backside becomes more visible the higher it goes in a tree. ?I?m starting to get pretty high up in the tree,? he says. As he talks, his phone lies on the table, says. its battery fading from overuse. He?s getting 100 to 125 interview requests a day, be He checks his phone. Time is running short. Heradio interview in a few minutes. Emma Brown and Alice Crites contributed to this report. 92? 643 Comments Manuel RoIg-Franzia is a writer in The Washington Post's Style section. His Iong~form articles span a broad range of subjects, including politics. power and the culture of Washington. He has also served as bureau chief in Miami for The Post's National staff and In Mexico City for the Foreign staff. 3 Follow @RoigFranzia 6 7 a Department of the Treasury - Internal Revenue Service Notice of Federal Tax lien . For Optional Hero by Recording Oflice Form 660 l?cv. February 2004) Area: SMALL EMPLOYED AREA #6 Lien Unit Phone: {300} 913-6050 Serial Number 267947117 he provided by section 6321, 6322, and 6323 of the Internal Revenue Code, are are giving a notice that taxes (Including interest and penalties) have been assessed against the following-named taxpayer. We have made a demand for payment of this liability, but it remains unpaid. Thereiore. there is a lien In favor of the United States on all property and rights to property belonging to this taxpayer for the amount of these taxes, and additional penalties, interest, and coat: that may accrue. Name of Taxpayer GLOBAL BARISTAS US LLC MICHAEL AVENATTI MBR Exmni '99? inmxa Residence 2003 WESTEM AVENUE SEATTLE, WA 98121 SUITE 660 IMPORTANT RELEASE INFORMATION: For each assessment listed below. unleea notice of the lien is rallied bv the date given In column ie]. this notice aheil. on the day following such date. operate as a certificate of as defined in IHC 6325iei. 'l'ax Period Date of Last be for Unpaid Balance Kind of Tax Ending Identifying Number Hall as of cement (hi to to 941 09/30/2015 02/22/2016 03/24/2026 29.10 941 12/31/2015 03/27/2017 04/26/2027 1309494.30 941 03/31/2016 03/27/2017 04/26/2027 1258259.68 941 06/30/2016 - 03/27/2017 04/26/2027 1237674.27 941 09/30/2016 03/27/2017 04/26/2027 119277o.1o 20170 ?a KING ccunrv. ua Place of Filing COUNTY AUDITOR KING COUNTY Total 4990227 . 45 SEATTLE, WA 98104 SEATTLE WA This notice was prepared and signed at on this, 26th, June 2017 the day of . 3 OFFICER 2 6 - 08 - 2515 for DAVI LEE {206) 946-3313 (NOTE: oi oiilcar authorized by law to mice acknowledgment is not essential to the validity oi Notice of Federal Tax lien Rev. Rul. 71-466. 1971 - 2 0.8. 409) Form (Rev. 2-2004i CAT. ND 60025)? Part I - Kept By Recording Office Instrument Number: 20170801000627 Document:FTL Rec: $148.00 Page-1 of 1 Record Datet??fzol'f 11:36 AM King County. WA - 522 Department of the Treasury - Internal Revenue Servlce Form 668 (Flev. gamma? - Notice of Federal Tax lien Area: - . . Sal-Ia] Number For Opltonel Use by Heeordlanf?oe SMALL EMPLOYED AREA #6 Llan Unlt Phone: (300) 913-6050 271591117 As provided by section 6321, 6322, and 6323 of the Internal Revenue Code, we are a notlce that taxes {lntludlng Interest and penalties) have been ass-ssed against the following?named taxpayer. We have made a demand for payment of but It rentalns unpald. Therefore, there Is a lien In fever of the Unlted States en all property- and rights to property belonging to this taxpayer for the amount of these taxes, and .10 penaltles, Interest, and costs that may accrue. EXHIBIT ,3 Name of Taxpayer GLOBAL BARISTAS US LLC MICHAEL MBR PAGE OF - -2003 WESTEM AVENUE SUITE 660 SEATTLE, we 93121 IMPORTANT RELEASE INFORMATION: For eaoh Hated below. notlce of the llen la rattled by the date glven In column tel. thla netlce shall. on the dewr following ouch date. operate as a certificate of release as defined in the 5325tel. Tax Perled Date of Last be for Unpaltl Balance Kind of Tax Ending ldentll'ylng Number Assessment Ref! ng of Assessment (at) (C) - 940 12/31/2015 . 04/10/2017' 05/10/2027 . 59145.14 Place of Filing COUNTY AUDITOR KING COUNTY . Total 59145 . 14 SEATTLE, WA 98104 notlce was prepared and signed at WA . on this, the 24th day of July 2017_ S'gnatm 3M EEWIENUE OFFICER 26-03-2515 for DAVI LEE {206) 946-3313 (NOTE: of offloer authorlzad by law to take acknowledgment Is not easentlal to the of Notlee of Federal-Tax llen Flev. Hul. 71-466, 1971 - 2 0.3. 409) . ?53 V, 2-2004 Part 2 - Internal Revenue Service TDA Copy Form goozax ,1 FILED 17 OCT 24 PM 4:02 KING COUNTY SUPERIOR COURT CLERK E-FILED CASE NUMBER: 17-2-27727-4 SEA STATE OF WASHINGTON BEFORE THE DEPARTMENT OF REVENUE THE STATE OF 2 WASHINGTON .-.- 95501-1257 WARRANT FOR UNPAID TAXES Annmr N0. wome- no. name memos: DISTRICT mace EGIETRATIGN N0. I 219233A 051 4 -2 503 269 225 TAXPAYER GLOBAL EAHISTAS US LLC (a Ilmltod company) 2003 WESTERN AVE STE 660 SEATTLE WA 98121-217? SUMMARY OF LIABILITY: The of warrant Includes the parlod(s): July-2017. August-2017 Page 1 of 2 EXHIBIT PAGE I v. STATE OF BEFORE THE DEPARTMENT OF REVENUE THE STATE OF - DEPARTMENT REVENUE 4% COMPLIANCE ADMINISTRATION WASHINGTON .- OLYMPIA. waantnoron 98501-1267 WARRANT FOR UNPAID TAXES No. rnvolce N0. PBS-TING PERIOD note 0F Issue blernto't' OFFICE N0- 219233A 051 10? Mill? Seattle 4 ?2 -1 one 239 225 STATE OF WASHINGTON VS. GLOBAL BARISTAS US LLC (a limited liability company) 2003 WESTERN AVE STE 660 SEATTLE WA 96121-2177 SUMMARY OF LIABILITY: The liability ofthle warrant Includes the periodta): July-2017. August-2017 TAX DUE: $259.807.04 DELINOUENT PENALTY: $23,382.63 WARRANT PENALTY (16% of Tax}: $25.960.70 AUDIT $94.45 ADDITIONAL INTEREST: $465.66 ADDITIONAL PENALTY: $12.323.06 TOTAL DUE $322,053.54 The State of Washington. through the Department of Revenue. to RYAN ANDERSON. or any other agent at the Department of Revenue: the taxpayarte indebted to me State of Washington In the amount or $322.053Mfortexes. Increases and penalties imposed under and by virtue of Chapters 82.04 through 82.32 Rcw. tor the pertad(e) shown above. together with Interest thereon at the rate allowed by law from and after the date of lhle warrant: and WHEREAS. the amount above became due more than ?fteen days prior to the date of this warrant. or to hereby declared to be immediately due and payable for the reason that the Director or the Departmant of Revenue does hattave that the tax or penalty speci?ed above will not he paid when due: NOW. THEREFORE. in the name of the State of Washington. you are commended (1) to file a copy of this the Clark of the Supertor Court ol a county in which you may property of the taxpayer. and (2) to levy upon the personal property or said taxpayer to the total amount epeoltled above. together with interest at the rate sltowad by law to the date of said levy. and coat of executing thla warrant. and make sale thereof according to law. and to levy upon and seize any eurely bond or other security conditioned upon payment by the taxpayer or taxes due the state of Washington. and It eu?tctent personal property and bonds or other security cannot be found. to satisfy said amount due out of the real property ofsatd telepayer. WITNESS. the Department of Revenue of the State of Washington and the Seal ofeetd Department. af?xed on October 12. 2617. I Program Manager. mean Page 2 ot2 Original FILED 18 FEB 02 AM 11:49 KING COUNTY SUPERIOR COURT CLERK E-FILED CASE NUMBER: 18-2-02922-8 SEA STATE or DEPARTMENT OF REVENUE BEFORE THE DEPARTMENT OF REVENUE THE STATE OF 1 WASHINGTON WARRANT FOR UNPAID TAXES ARRANT NU. VOICE ND. PERIOD DATE OF SEILIE STRICT CIFFI - CI. 220457)! 053 4 -1 503 239 225 TAXPAYER GLOBAL BARISTAS US LLO (- Ilmlted company) 5805 POINTS DR NE CLYDE HILL WA 98004-1615 SUMMARY OF LIABILITY: The of warrant Includes the parlod(s): September-2017 Page 1 of 2 Original EXHIBIT STATE 0F WASHINGTON BEFORE THE DEPARTMENT OF REVENUE THE STATE OF DEPARTMENT or Revenue I. CUMPLIANEE ADMINISTRATION WASHINGTON 93501-123? WARRANT FOR UNPAID TAXES NU. WQICE PDHTING PERIOD DATE OF ISSUE DISTRIGT DFFICE N0- 220457A I353 09-201? Seattle 4 -2 -1 503 239 225 WASHINGTON VS. GLOBAL BARISTAB US LLC (a company) BEBE POINTS DR NE HILL WA 981304-1615 SUMMARY OF LIABILITY: The liability warrant Includes the parlod(s): September-2017 TAX DUE: $123,439.47 DELINQUENT PENALTY: $11.114.05 WARRANT PENALTY {10% 01' Tax): $12,340.95 AUDITINTEREET: $20.30 ADDITIONAL INTEREST: $182.70 ADDITIONAL PENALTY: $0.00 TOTAL DUE $147,155.47 The state of Washington. through the Department of Revenue. to RYAN ANDERSON. or any other agent of the Department of Revenue: WHEREAS. the taxpayer to lndebted to the State of Washington In the amount of $147,155.47 fortaxee. Inoreasee and penalties Imposed under and by virtue of Chapters 82.04 through 52.32 ROW. for the periodha) shown above. together with Interest thereon at the rate ellowad by law from and alter the date of this warrant; and WHEREAS. the amount speoltted above become due more than fifteen days prior to the date of thle warrant, or to hereby declared to be Immediately due and payable for the reason that the Director of the Department of Revenue doea believe that the tax or penalty apeoitled above will not be paid when due: Now. THEREFORE. In the name of the state of Washington. you are commanded (1) to ?io a copy of this warrant with the Clerk of the Superior Court of a county In which you may find property ofihe taxpayer. and (2) to levy upon the personal property of eeid teXpayer to the total amount speci?ed above. Interest at the rate allowed by law to the date of eatd levy. and oostor exaoutlng this warrant. and metre eele thereof according to law. and to levy upon and seize any aurety bond or other aeourity conditioned upon payment by the taxpayer of tattoo due the State or Washington. and eut?dent personal property and bonds or other security cannot be found. to satiety said amount due out of the real property of said taxpayer. WITNESS. the Department of Rayonua ot the State of Washington and the Seal of eald Department. af?xed on November 20. 201?. ,r I 11.1"! Program Manager, Compile nco I )hr'tsr'rm Page 2 or 2 Origtnal FILED 18 MAR 05 PM 3:57 KING COUNTY SUPERIOR COURT CLERK E-FILED CASE NUMBER: 18-2-05937-2 SEA BEFORE THE DEPARTMENT OF REVENUE THE STATE OF . WASHINGTON mp WARRANT FOR UNPAID TAXES . a! 5 AR AN 0. NVEIICF. No. name PERIOD mm: EEUE OFFICE earsmmou No. 2231B4A GEE 11-201? 4 -2 603 2B9 225 TAXPJIYER GLOBAL BARISTAS U3 (a lIabllIty company) $805 PDINTS DR NE CLYDE HILL WA 981104-1315 SUMMARY OF LIABILITY: The IInhIllty of this warrant Includes the parlod(s): October-2017. November-2017 Page 1 of2 EXHIBIT I29 .3 BEFORE THE DEPARTMENT OF REVENUE THE STATE OF I COMPLIANCE ADMINISTRATION WASHINGTON OLYMPIA. WASHINGTON 93501-125? WARRANT FOR UNPAID TAKES enema N0. avorea no. POSTING PERIOD DATE OF ISSUE Iterator OFFICE REGISTRATION 223184A use 11-201? thotlzut? Seattle at ~2 -1 Etna 269 225 STATE OF WASHINGTON VS. GLOBAL US (a company) 3305 POINTS DR NE CLYDE HILL WA 53004-1615 SUMMARY OF LIABILITY: The of thle warrant Includes the perlodte): October-2017. November-2017 TAX DUE: $133,754.90 DELINQ LIE NT PENALTY: $12,037.94 WARRANT PENALTY [10% of Tatt): $13.376.49 AUDIT INTEREST: $86.82 ADDITIONAL INTEREST: $445.84 ADDITIONAL PENALTY: $20.466.29 TOTAL DUE $180,167.08 The State or through the Department of Revenue. to RYAN ANDERSON. or any other agent of the Department of Revenue: WHEREAS. the taxpayerts Indebted to the State of In the amount of stsoneme tor taxes. Increases and penaltles Imposed under and by virtue of Chapters 82.04 through 82.32 ROW. for the panodts) shown above. together wlIh Interest thereon at the rate aIIoWed by law from and after the date or thle Warrant; and WHEREAS. the amount speolttad above became due more than ?fteen days prtor lo the data of Ihls warrant. or to hereby declared to be lmmedtatety due and payable for the reason that the Dlrector of the Department at Revenue does bellsva that the tax or penalty spaclned above will not be paid when due; Now. THEREFORE. tn the name or the State of you are commanded (1) to Illa a copy of thle the Clerk of the Supertor Court of a county In which you may ?nd property of the taxpayer. and (2) to levy upon the personal property of sald taxpayer to the total amount speelttad above. Interest at the rate allowed by law to the date or eald levy. and together cost or exaeutlng Ihls warrant. and make sate thereof to law. and to levy upon and selze any surety bond or other securtty upon payment by the taxpayer of taxes due the State of and It eul?clent personal property and bonds or other eaourtty cannot be round. to aellary eald amount due oulef the real property of sald taxpayer. WITNESS. the Department of Revenua of the State ofWaahInpton and the Seal or salt! Department. el?tlxed on February 2018. t_ Program Manager, Camptinncr: Division Page 2 or 2 FILED 17 FEB 13 AM 9:49 KING COUNTY SUPERIOR COURT CLERK E-FILED CASE NUMBER: 17-2-03443-6 SEA WARRANT Department of Labor a Industries COLLECTIONS Olympia, Washington 98504?4170 Cause No. Warrant Nb. 0316571 for Unpaid workers' Compensation Taxes IN THE MATTER OF THE ASSESSMENT OF COMPENSATION TAXES AGAINST: vavuvf?f?r GLOBAL BARISTAS us LLC A LIMITED LIABILITY COMPANY, DBA TULLYS 9 2003 WESTERN AVE 515 660 1 SEATTLE HA 98121217? 1 i 9 An Employer, Account ID 260,839~00 Unified Business Identifier (UBI) 603269225 THE DIRECTOR OF THE DEPARTMENT OF LABOR INDUSTRIES OF THE STATE OF WASHINGTON: TO THE CLERK OF KING COUNTY, STATE OF WASHINGTON, WHEREAS, a Notice and Order of Assessment of Workers' Compensation Taxes NO. 0647366 in the amount of $46,384.92 was served, pursuant to RCW 51.48.120, on the above named employer, and WHEREAS, the above named employer has not filed or pursued an appeal with the Board of Industrial Insurance Appeals or the Director of the Department of Labor a Industries within thirty days of the date of service of the Notice and Order of Assessment, and WHEREAS the Notice and Order of Assessment therefore became final and established in the remaining unpaid balance of $53,824.01, which includes penalties, interest and fees through January 31, 2017. 260,839-00 1353272 EXHIBIT 7 PAGE 1. OF 7.. WARRANT NO. 0316571 DEPARTMENT OF LABOR INDUSTRIES An employer, Account ID 260,839-00 UBI: 603269225 NOW THEREFORE, pursuant to RCW 51.43.140, the Clerk of KING County shall designate a Superior Court cause number for this Warrant and cause to be entered in the judgment docket under the cause number assigned, the name of the listed employer, the date of the filing of the Warrant, and the warrant amount of Fifty Three Thousand, Nine Hundred Sixty Four and 1/100 Dollars, which includes the statutory filing fee of Twenty Dollars and the statutory surcharge of Twenty Dollars. The aggregate amount of this Warrant as docketed is a lien upon the title to, and interest in all real and personal property of the emgloyer against whom this Warrant is issued, the same as a judgment in a civil case duly docketed in the office of such Delinquent taxes shall bear interest at the rate of one percent of the delinquent amount per month or fracrion thereof from and after the dua date until payment. increases, and penalties are received by the department (RCH 51.&3.210) Dated this 30th day of January 2017 For the Director of the DEPARTMENT OF LABOR INDUSTRIES . 4 in. Jan. 3 By: Gr alas Ledesma Revenue Agent Phone: (206) 515-2948 Dept. of Labor Industries 315 5th Avenue South Ste #200 Seattle WA 98104 STATUTORY REFERENCES ATTACHED 260,839-00 1353272 Page: 2 FILED 17 JUN 16 AM 11:38 KING COUNTY SUPERIOR COURT CLERK E-FILED CASE NUMBER: 17-2-15691-4 SEA WARRANT Department of Labor Industries COLLECTIONS Olympia. Washington 98504-4170 Cause No . I Warrant No. 0319825 I for Unpaid IN THE MATTER OF THE ASSESSMENT OF COMPENSATION TAXES AGAINST: I I Workers' Compensation Taxes GLOBAL BARISTAS us A LIMITED LIABILITY COMPANY, 1 DBA IULLIs 2003 WESTERN AVE are 660 SEATTLE WA 951212177 3 i An Employer, Account ID 260,839-00 Unified Business Identifier (UB1) 603269225 THE DIRECTOR OF THE DEPARTMENT OF LABOR INDUSTRIES OF THE STATE OF WASHINGTON: TO THE CLERK OF KING COUNTY, STATE OF WASHINGTON, WHEREAS, a Notice and Order of Assessment of Workersr Compensation Taxes NO. 0653736 in the amount of $41,264.29 was served, pursuant to RCW 51.48.120, on the above named employer, and WHEREAS, the above named employer has not filed or pursued an appeal with the Board of Industrial Insurance Appeals or the Director of the Department oi Labor a Industries within thirty days of the date of service of the Notice and Order of Assessment, and WHEREAS the Notice and Order of Assessment therefore became final and established in the remaining unpaid balance of $46,053.89, which includes penalties, interest and fees through June 30, 2017, EXHIBIT PAGE I OF 2, WARRANT WARRANT NO. 0319825 DEPARTMENT OF LABOR INDUSTRIES An employer, Account ID 260,839?00 UBI: 603269225 Warrant and cause to be entered in the judgment docket under the cause number assigned, the name of the listed employer, the date of the filing of the Warrant, and the warrant amount of Forty Six Thousand, One Hundred Ninety Three and 89/100 Dollars, which includes the statutory filing fee of Twenty Dollars and the statutory surcharge of Twenty Dollars. The aggregate amount of this Warrant as docketed is a lien upon the title to, and interest in all real and personal property of the employer against whom this Warrant is issued, the same as a clerk, and is sufficient to support the issuance of writs of garnishment in favor of the state in a manner provided by law in case of judgment, wholly or partially unsatisfied. Delinquent taxes shall bear interest at the rate of one percent of the delinquent amount per month or fraction thereof from and after the due date until payment, increases, and penalties are reneived by the department (ecu 51.48. 2103 Dated this 15th day of June 2017 For the Director of the DEPARTMENT OF LABOR INDUSTRIES By: Gero_ olon?a Revenue Agent Phone: (206) 515?2843 Dept. of Labor Industries 315 5th Avenue South Ste #200 Seattle WA 98104 STATUTORY REFERENCES ATTACHED 260,839~00 1371855 Page: 2 FILED KING COUNTY SUPERIOR COURT CLERK E-FILED CASE NUMBER: 17-2-30862-5 SEA WARRANT Department of Labor Industries COLLECTIONS O1ympia. Washington 98504-4170 Cause No. Warrant No. 0323053 for Unpaid workers' Compensation Taxes IN THE MATTER OF THE ASSESSMENT OF COMPENSATION TAXES AGAINST: GLOBAL BARISTAS US LLC A LIMITED LIABILITY COMPANY, DBA TULLYS 2003 WESTERN AVE STE 660 SEATTLE WA 981212177 An Employer, Account ID 260,839-00 Unified Business Identifier (UBI) 603269225 THE DIRECTOR OF THE DEPARTMENT OF LABOR INDUSTRIES OF THE STATE OF WASHINGTON: TO THE CLERK OF KING COUNTY, STATE OF WASHINGTON, WHEREAS, a Notice and Order of Assessment of Workere' Compensation Taxes NO. 0660456 in the amount of was served, pursuant to RCW 51.43.120, on the above named employer, and WHEREAS, the above named employer has not filed or pursued an appeal with the Board of Industrial Insurance Appeals or the Director of the Department of Labor Industries within thirty days of the date of service of the Notice and Order of Assessment, and WHEREAS the Notice and Order of Assessment therefore became final and established in the remaining unpaid balance of which includes penalties, interest and fees through November 30, 2017. 260,839?001390397 EXHIBIT QI . PAGE I 0" WARRANT WARRANT NO. 0323053 DEPARTMENT OF LABOR INDUSTRIES An employer, Account ID 260,839-00 UBI: 603269225 Warrant and cause to be entered in the judgment docket under the cause number assigned, the name of the listed employer, the date of the filing of the Warrant, and the warrant amount of Fifty Thousand, One Hundred seventy One and 17/100 Dollars, which includes the statutory filing fee of Twenty Dollars and the statutory surcharge of Twenty Dollars. The aggregate amount of this Warrant as dooketed is a lien upon the title to, and interest in all real and personal property of the employer against whom this Warrant is issued, the same as a judgment in a civil case duly dooketed in the office of such clerk, and is sufficient to support the issuance of writs of garnishment in favor of the state in a manner provided by law in case of judgment, wholly or partially unsatisfied. Delinquent taxes shall bear interest at the rate of one percent of the delinquent amount per month or fraction thereof from and after the due date until payment, increases, and penalties are received by the department (RCH 51.48.210) Dated this 30th day of November 2017 For the Director of the DEPARTMENT OF LABOR INDUSTRIES 6/537 .By:?Eriserda Ledesma Revenue Agent Phone: (206) 515?2848 Dept. of Labor Industries 315 5th Avenue South Ste #200 Seattle WA 98104 STATUTORY REFERENCES ATTACHED 1390397 Page: 2 Case Doc 45 Filed 04/06/17 Page 1 of 7 STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION In re: CHAPTER 11 EAGAN AVENATTI, LLP CASE Nil: Debtor. I APPLICATION OF EA GAN AVENATTI. LLP T0 ELIZABETH A. GREEN AND THE LAW FIRM OF BAKER HOSTETLER LLP it" ("ill i . ?3?!th Ti?! .2111; A if)! I ll 2 EAGAN AVBNATTI, LLP seeks authorization to employ Elizabeth A. Green and the law ?rm of Baker ?is Hostetler LLP as its counsel in this case, nuns pro tune to March 10, 2017, stating as follows in support: 1. On March 1, 2017 (?Involuntary Petition Date?), an involuntary Chapter ll petition (Doc. No. 1) was commenced against EA by Gerald Tobin ("Tobin" or ?Petitioning Creditor") in the United States Bankruptcy Court for the Middle District of Florida. Orlando Division (the "Court"). on March 10, 2017, BA tiled an Answer and Consent to Entry of Order for Relief (Doc. No. 10). BA continued to operate its business with the assistance of its employees following the Involuntary Petition Date pursuant to Bankruptcy Code' Section 303 2. On March 10, 2017. the Court entered its Order for Relief. (Doc. No. 13). No trustee has been appointed. EA intends to continue to operate its business in the ordinary course as debtor in possession pursuant to Bankruptcy Code Sections 1107 end 1108. 3. EA desires to employ pursuant to Section 32701) of the Bankruptcy Code, to assist BA in its bankruptcy case. 1All references to the "Bankruptcy Code" refer to 11 U.S.C. 101 stseq. EXHIBIT ?0 Cese Doc 45 Filed 04/06/17 Page 2 of 7 4. EA has selected because: 11. partners and associates orBt?tH are admitted to practice in this Court; 13- partners and associates of eel-t are experienced. in rendering the types of legal services that will he required in this case; and 0. Beet-i will be elite to ef?ciently and cost-effectively render services necessary in this Chapter 11 case. 5. In the continuation of BA's estate and in the administration of this case, legal services will be required as to, but not limited to, the following: a. advising as'to EA's rights and duties in this case; b. preparing pleadings related to this case, including a disclosure statement and a plan of reorganization; c. negotiating with creditors in this case with respect to treatment under the Plan of Reorganization: d. soliciting acceptances for the Disclosure Statement and a Plan of Reorganization; and e. taking any and all other necessary notion incident to the proper - preservation and administration or" this estate. 6. Except as may be set forth in its Veri?ed Statement pursuant to Fed. R. Bank. P. 2014, has no connection with any lenders or other creditors, any other party-in-interest, their respective attorneys and accountants, the United States Trustee, or any persons employed by the United States Trustee. 7. To EA's knowledge, represents no interest adverse to BA or to its estate in matters upon which it is to be engaged, and employment of 131-! would be in the best interest of the estate. 8. On March 8, 2017, EA paid a retainer to of $10,000 for expenses and i services rendered by Be'aH to BA in connection with determining rights as a result of the Case Doc 45 Flled 04/06/17 Page 3 of 7 involuntary petition commenced by Tobin (?Pro-Order for Relief Retainer?). The Pro-Order for Relief Retainer was intended to compensate Bibi-l for fees and expenses incurred in connection With representation of BA from March 3, 2017 through March 10, 2017, Just prior to the entry of the Order for Relief Period?). However, because the Pro-Order for Relief Retainer was in the than of a check, and the Order for Relief was entered on an expedited basis, the check for the Pro-Order for Relief Retainer cleared any the Order for Relief was entered. As i such, is returning the $10,000 Pro-Order for Relief Retainer to EA. 9. On March 15, 2017. Global Baristas US, LLC (?Global paid a retainer to of $100,000 for fees and expenses incurred on BA's behalf in connection with this case ("Initial $100,000 Retainer?). During the GAP Period, Global US paid feel and costs totaling $22,627.88 from the $100,000 retainer, leaving $77,375.12. On or before April 12, 2017, Global US shall pay an additional retainer to of $100,000, for a collective Chapter 11 retainer of $177,375.12 (?Chapter 11 Retainer?). Additionally, Michael Ayenatti, Managing Partner of EA, has personally guaranteed payment of Chapter 11 Retainer and any other fees and expenses incurred by on EA's behalf related to EA's Chapter 11 case. 10. The $200,000 paid to from Global US is not a loan to EA, and EA is under no obligation to repay Global US for any portion of the $200,000. Global US is a limited liability company formed in the state of Washington. Global US is owned by Global Baristas, LLC which is also a limited liability company formed in the state of Washington. Michael Avenattl holds interests in through Dopplo, Inc. (?Doppio?), a Delaware corporation. Neither Global US, nor Dopplo are creditors or equity security holders of EA. EA is not a creditor, guarantor, or equity security holder of Global US, or Doppio. The business of Global US, and Doppic (which are in the coffee business) are entirely 3 Case Doc 45 Filed 04/06/17 Page 4 Of 7 unrelated to the business of EA, which operates a Jew firm. Neither Globe] US, nor DODpio share the same day-tendey operetlenel management or as EA. Mr. Avenetti ?s 11. The terms of employment agreed to between EA and subject to approval of the Court, are that services will be billed ml; the standard hourly rates of the respective attorneys and paralegals of and are subject to periodic adjustment to reflect eoonamio and other considerations. will apply any retainer to its periodic billings subject to interim and ?nal applications for compensation and approval by the Court, and. at an appropriate time, may make application for an award of additional compensation; and EA, subject to Court approval. shall be responsible for all fees and expenses incurred by Bd?oH. WHEREFORE, EAGAN AVENATTI. LLP respectfully requests the entry of an order, name we tune to March 10, 2017. authorizing it to retain and employ Elizaheth A. Green and the law firm of Baker Rt Host-otter, LLP, as counsel in this case, and for such other and timber relief as Meat and proper in the oiromnstancee. RESPECTFULLY SUBMITTED this li'lh lny oprrii. 2017. r" I ER die in. Avenetti. Managing Partner SUPERIOR COURT OF THE STATE OF WASHINGTON IN AND FOR THE COUNTY OF KING BELLEVUE SQUARE, LLC, a I Washington limited liability 1 company, 1 Plaintiff, 1 vs. 1 No. 15-2-27043-5 SEA GLOBAL BARISTAS US, LLC, a Washington limited liability company; B-SQUARED 1 CONSTRUCTION, INC., a 1 Washington corporation, Defendants. i VIDEOTAPED 30(b)(6) DEPOSITION UPON ORAL EXAMINATION . OF GLOBAL BARISTAS MICHAEL JOHN AVENATTI VOLUME II October 4, 2016 1201 Pacific Avenue, Suite 1200 Tacoma, Washington REPORTED BY: Brenda Steinman, CCR #2717 EXHIBIT PAGE I 153 1) OF 3' believe this, but I just got this voicemail from Howard McQuaid. And then he told me about the voicemail. Q. Was Mr. Helm on that call? A. No. Q. Who are the owners of Global Baristae? A. Doppio, LLC, and a number of trusts. Q. Spell Doppio, please. A. Q. Who owns Doppio, A. Avenatti and Associates, LLC. Q. What percentage interest does Doppio own? A. It's greater than 80 percent. I don't recall the exact percentage. Q. Do you also control the trusts that own the remainder? A. No. Q. Who controls those trusts? A. A gentleman by the name of Larry Spitcaufsky. Q. Spell the last name, please. A. Q. Does I'll call him'Larry so I don't have to take a crack at that last name. Is he involved in the day to day decision making of Global Barietas at 188 all? A. No. Q. Does he have any title with the company? A. No. Q. Who are currently the officers of Global Baristas? A. I believe just myself. I mean we don't have officers in a traditional sense, because it's an LLC as opposed to an or corp. Obviously we're not publicly traded. Q. Right. Forgive me if I'm misquoting you, but I believe from this morning you said either Mr. Helm had been replaced but Mr. McDonald had not, or vice versa. A. Mr. Helm was never an officer. He was the director of retail operations. Q. And he has not been replaced. A. Mr. Helm has been replaced. Q. Who is currently the director of retail operations? A. Melissa Grice. Q. Spell the last name, please. A. G-R-I-C-E. Q. When did she become the director of retail operations? Michael Avenatti July 21, 2017 Page 1 IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON IN AND FOR THE COUNTY OF KING BELLEVUE SQUARE, LLC, a 1 Washington limited liability company, ?lunar??m-uu?muu?w?-??-W-uI?? Plaintiff, vs. No. 15?2?27043-5 SEA Washington limited liability company; and B-SQUARED CONSTRUCTION, INC., a Washington corporation, 1 GLOBAL BARISTAS US, LLC, a 1 I Defendants. B-SQUARED CONSTRUCTION, INC., Plaintiff, vs. HARTFORD FIRE INSURANCE COMPANY, Surety for Bellevue Square, LLC, Defendant. SUPPLEMENTAL PROCEEDING Of MICHAEL AVENATTI EXHIBIT Seattle, Washington 98104 DATE: July 21, 2017 r_l - REPORTED BY: Olivia Pennella SEATTLE DEPOSITION REPORTERS, LLC 206.622.6661 800.657.1110 FAX: 206.622.6236 Michael Avenatti July 21, 2017 mwaHomm-Jmm-bwtol?I Page 6 brie?y. lfyou'd like. A. I think I'm generally Familiar with the ruins. Q. wait. l'il .. the short and sweat version in. verbal responses only. Weill try not to speak over each other. You know. tell me it? you don't understand a question. Let me know if you need a break. And I'll ask that you answer my questions post your counsel's objection, unless lusnuotad otherwise by your counsel. So Global Batistos is an LLC. current? A. Yes, sir. Q. I'm Just trying to understand the organizational structure -- who owns what. Who are the members of Global Baristue A. Global Baristns LLC has three members. not recall: Dopplo 1:10.. the Spitknui?aky Trust has a small percentage. and I believe another family trust established by Sim Osborn. Q. The same Sim Osborn that is the named partner in Osborn Maoi?cr, your counsel? A. Yes. sir. Q. So, tell me about Doppio the. Where is it incorporated? . A. I'm not here to answer questions about Dopplo Inc., sir. I'm here to answer questions as the mthHOtOm-v?lmmnanI-l Page 8 separate limited liability companies that were established in 2013. Q. For what purpose? A. For general corporate governance and operational purposes. It's not unusual. in my experience. to have multiple entities in connection with one or more purposes. in tact, It?s thirty standard. 0. You're saying you don't know the purpose of US. LLC -- why you set that up? A. No. I thiukljust answered your question. i told you eaaotly why. Namely. at the time thattho assets other former 'I'uily's Company -- which was TC Global -- at the time those assets were purchased by Global Batistas LLC in 2013. a number ofeutitlos were set up for the purpose atop-crating the company and for the purposes of addressing various aspects ot?the company's operational agreements. at eaters. One of those entities WEB Global Batista-s US. LLC. Q. You said a lot ot?atut'i?. but I'm not sure you said anything. What business do you operate -- MS. MACPEER: I'm going to objeot to that. You can ask him questions. but that's -- that wasn't a question. So let's just ask questions. okay? Q. [By Mr. Uddan Pine. Okay. What entity do you use to operate Tuily's oofi?ee stores? uanHoww-Jmm-ammr-no Page 7 corporate designed of?lobai Baristas LLC. If you wanted a aupplomuntai proceeding against Doppio Ina. then you should have asked for that. Q. Okay. A. Ball believe it?s incorporated in Delaware. But] did not check the incorporation before I came here today. 'cause I did not expect to answer questions on Domain. Q. Well. you understand we have Judgment against Global Earlstas US. LLC. correct? That's an entirely different company than Global Buristas. and it's an entirely dlil?erenl company ltornanpio. But. yes -- Q. They're not related in any way. shape. or form? A. Sir, you haven't asked me that question. But iuutlorslaud that you have a Judgment. which may or may not hold up ultimately against Global Beriatos Ub?. LLC. That Is an entirely different oompany than Global Baristas and Doppio Iuc. Q. Why don't you tell me the exact nature of the relationship between Global Elaristas LLC and Global Barristers US. A. Global Hatteras LLC owns 100 percent ofthe membership units in Global Baristas US. LLC. They are mammwoomdmmac-JNH Page 9 A. Well. I don't know that I understand your Question entirely. air. But. generally. most oftlia day-Io-d ay operation occur through Global Baristas US. LLC. {and they have ocwrred through Global Earistas US. LLC since 2013. Q. Does Barlstas LLC have any parent entities or umbrella operations? A. i don?t understand the question. Which entity? Q. Barlstas LLC. Global Barrister. LLC. does that have any parents? A. Well. I don't know exactly what you mean by the word "parent." But -- but i believe that Dopplo would be a parent to Global Baristus LLC. technically. Q. Re US. LLC is wholly owned by Hatteras is that fair? A. Global Baristas US, LLC is wholly owned by Global Bariatas LLC. yes. Q. Okay. Does US. LLC ever make distributions to Baristas LLC or its members? A. No. not that 1 ean recall. Certainly not within the last three years. which i think is the scope oftlte order. Q. Does it make any transfers? A. Are you asking me about Global Baristas or SEATTLE DEPOSITION .seadep.com 206.622.6661 REPORTERS, 800.657.1110 FAX: 206.622.6236 3 (Pages 6 to 9) LLC 3126/2018 Corporations and Charities System Charities Filing System Business Name: GLOBAL BARISTAS, LLC UBI Number: 603 259 246 Business Type: WA LIMITED LIABILITY COMPANY Business Status: IVE Principal Office Street Address: 2003 WESTERN AVE STE 660, SEATTLE, WA. 98121-2177, UNITED STATES Principal Office Mailing Address: Expiration Date: 12/3112018 Jurisdiction: UNITED STATES, WASHINGTON Formation/ Registration Date: 12/12/2012 Period of Duration: Perpetual 2 Inactive Date: EXHIBIT. PAGE 1 OF J. Nature of Business: REGISTEREDAGENTEINFORMATION 1?2 326/2018 Corporations and Charltles System Reglstered Agent Name: UNISEARCH, INC. Street Address: 1780 BARNES BLVD SW, TUMWATER, WA, 98512, UNITED STATES Address: 1780 BARNES BLVD SW, TU MWATER, WA. 98512, UNITED STATES GOVERNORS TItle Governors Type Name Name Last Name GOVERNOR INDIVIDUAL MICHAEL AVENATTI Back HistorijName HIstory to Buslness Search 212 3/26/2018 Corporations and Charities System Charities Filing System BUSINESS INFORMATION Business Name: GLOBAL BARISTAS US, LLC UBI Number: 603 269 225 Business Type: WA LIMITED LIABILITY COMPANY Business Status: IVE Principal Office Street Address: 1111 3RD AVE STE 3400. SEATTLE, WA, 98101, UNITED STATES Principal Office Mailing Address: Expiration Date: 01/31/2019 Jurisdiction: UNITED STATES. WASHINGTON Formation/ Registration Date: 01/23/2013 Period of Duration: Inactive Date: I I Nature of Business: Perpetual REGISTEREDIAGENT INFORMATION Registered Agent Name: 1?2 3i26/2018 Corporations and System UNISEARCH, INC. Street Address: 1780 BARNES BLVD SW, TU MWATER, WA, 98512-0410, UNITED STATES Malling Address: 1780 BARNES BLVD SW, TUMWATER, WA, 98512-0410, UNITED STATES GDVERNORS Tltle Governors Type Name Name Last Name GOVERNOR INDIVIDUAL GLOBAL BARISTAS, LLC Back I Hlstor? ?ame Hlstory_] Return to Business Search 2?2 NOLD MUCHINSKY 10500 NE 8th Street, Suite 930 Bellevue, WA 98004 To: Of?ce of Chief Trial Counsel c/o Intake Dept, State Bar of California 845 South Figueroa Street Los Angeles, CA 90017