Frank has alleged that Eagan Avenatti cheated him out of millions of dollars in pay, a charge that Avenatti denies.
The firm has defaulted on more than $880,000 in federal payroll taxes, penalties and interest that Avenatti had promised to pay. The Internal Revenue Service asked Bauer to hold the firm in contempt of court, but set aside the request Wednesday after reaching a deal for payment, according to the U.S. attorney’s office in Los Angeles.
“Your honor, the payroll taxes need to be paid as soon as possible,” Assistant U.S. Atty. Najah Shariff told Bauer shortly before Avenatti began testifying behind closed doors in a courthouse conference room.