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Michael Avenatti, ex-lawyer for Stormy Daniels, arrested on extortion charges Michael Avenatti, ex-lawyer for Stormy Daniels, arrested on extortion charges
(30 minutes later)
The high-profile attorney Michael Avenatti was charged with trying to extort more than $20m from the sports company Nike.The high-profile attorney Michael Avenatti was charged with trying to extort more than $20m from the sports company Nike.
Avenatti, the former lawyer for Stormy Daniels and a prominent critic of Donald Trump, threatened to release damaging information about Nike unless it paid him off, according to a criminal complaint filed by federal authorities in New York.Avenatti, the former lawyer for Stormy Daniels and a prominent critic of Donald Trump, threatened to release damaging information about Nike unless it paid him off, according to a criminal complaint filed by federal authorities in New York.
He was also charged with wire and bank fraud in a separate case in Los Angeles, where prosecutors said he embezzled money from a client.He was also charged with wire and bank fraud in a separate case in Los Angeles, where prosecutors said he embezzled money from a client.
Avenatti, a California lawyer who has even teased the idea of a presidential bid, rose to national fame as the lawyer for Daniels, the porn star who was paid off to keep quiet about an alleged sexual encounter with Donald Trump. They parted ways this month. Avenatti, a California lawyer who has teased the idea of a presidential bid, rose to national fame as the lawyer for Daniels, the porn star who was paid off to keep quiet about an alleged sexual encounter with Donald Trump. They parted ways this month.
He used his prominence to try to extort millions from Nike, prosecutors alleged. He threatened to publicize allegations of misconduct against Nike unless the company paid a client he represented $1.5m, and paid Avenatti and another lawyer up to $25m to conduct an internal investigation, the criminal complaint says.He used his prominence to try to extort millions from Nike, prosecutors alleged. He threatened to publicize allegations of misconduct against Nike unless the company paid a client he represented $1.5m, and paid Avenatti and another lawyer up to $25m to conduct an internal investigation, the criminal complaint says.
“A suit and tie doesn’t mask the fact that at its core, this was an old-fashioned shakedown,” said Geoffrey Berman, the US attorney for the southern district of New York.“A suit and tie doesn’t mask the fact that at its core, this was an old-fashioned shakedown,” said Geoffrey Berman, the US attorney for the southern district of New York.
Fox News reportedly killed Stormy Daniels story to help Trump winFox News reportedly killed Stormy Daniels story to help Trump win
Avenatti was arrested in New York on Monday morning and later appeared in court. He did not enter a plea and was released on a $300,000 bond.Avenatti was arrested in New York on Monday morning and later appeared in court. He did not enter a plea and was released on a $300,000 bond.
“I am highly confident that when all the evidence is laid bare in connection with these cases, when it is all known, when due process occurred, that I will be fully exonerated and justice will be done,” Avenatti said on Monday night.“I am highly confident that when all the evidence is laid bare in connection with these cases, when it is all known, when due process occurred, that I will be fully exonerated and justice will be done,” Avenatti said on Monday night.
Berman said Avenatti, 48, acted as an attorney bringing a case on behalf of a client merely to “provide cover for [his] extortionate demands for a massive payday for himself”, adding: “When lawyers use their law licenses as weapons as a guise to extort payments for themselves, they are no longer acting as attorneys. They are acting as criminals.”Berman said Avenatti, 48, acted as an attorney bringing a case on behalf of a client merely to “provide cover for [his] extortionate demands for a massive payday for himself”, adding: “When lawyers use their law licenses as weapons as a guise to extort payments for themselves, they are no longer acting as attorneys. They are acting as criminals.”
Avenatti represented the coach of an amateur men’s basketball team that Nike had sponsored but had recently cut ties with, court documents say.Avenatti represented the coach of an amateur men’s basketball team that Nike had sponsored but had recently cut ties with, court documents say.
He met Nike lawyers last week and said his client had information that Nike employees made illicit payments to top high school basketball prospects – similar to accusations against Adidas employees that resulted in federal convictions.He met Nike lawyers last week and said his client had information that Nike employees made illicit payments to top high school basketball prospects – similar to accusations against Adidas employees that resulted in federal convictions.
Avenatti said he would hold a press conference to publicize the charges – timed to coincide with the NCAA basketball tournament and Nike’s quarterly earnings calls – unless his demands were met, prosecutors said. Avenatti said he would hold a press conference to publicize the allegations – timed to coincide with the NCAA basketball tournament and Nike’s quarterly earnings calls – unless his demands were met, prosecutors said.
Shortly before the charges were revealed Monday, Avenatti posted a tweet announcing a press conference on the allegations. Shortly before the charges against him were revealed on Monday, Avenatti posted a tweet announcing a press conference on the Nike allegations.
“Tmrw at 11 am ET, we will be holding a press conference to disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered,” he wrote. “This criminal conduct reaches the highest levels of Nike and involves some of the biggest names in college basketball.”“Tmrw at 11 am ET, we will be holding a press conference to disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered,” he wrote. “This criminal conduct reaches the highest levels of Nike and involves some of the biggest names in college basketball.”
However, Nike had reported Avenatti to federal authorities, who had begun recording the company’s meetings with him, the court documents say.However, Nike had reported Avenatti to federal authorities, who had begun recording the company’s meetings with him, the court documents say.
Avenatti demanded that the company pay $1.5m to the amateur coach, and hire him and another lawyer – identified by the Wall Street Journal as Mark Geragos – to conduct an internal investigation into the charges, at a cost of $15m to 25m, the complaint says. He later said he would accept a total settlement of $22.5m in exchange for “full confidentiality, we ride off into the sunset”.Avenatti demanded that the company pay $1.5m to the amateur coach, and hire him and another lawyer – identified by the Wall Street Journal as Mark Geragos – to conduct an internal investigation into the charges, at a cost of $15m to 25m, the complaint says. He later said he would accept a total settlement of $22.5m in exchange for “full confidentiality, we ride off into the sunset”.
On one phone call, as Avenatti threatened to go public if he was not paid enough, he said: “I’ll go take ten billion dollars off your market cap. But I’m not fucking around,” according to the complaint. He later asked a Nike lawyer if he had ever “held the balls of the client in your hand where you could take five to six billion dollars market cap off them”. On one phone call, as Avenatti threatened to go public if he was not paid enough, he said: “I’ll go take $10bn off your market cap. But I’m not fucking around,” according to the complaint. He later asked a Nike lawyer if he had ever “held the balls of the client in your hand where you could take $5bn-$6bn market cap off them”.
Avenatti was arrested on Monday when he showed up for what he thought would be a final meeting with Nike representatives, prosecutors said.Avenatti was arrested on Monday when he showed up for what he thought would be a final meeting with Nike representatives, prosecutors said.
Prosecutors did not comment on whether there was any validity to the allegations Avenatti had unearthed against Nike.Prosecutors did not comment on whether there was any validity to the allegations Avenatti had unearthed against Nike.
In the second case in California, Avenatti was accused of embezzling a client’s money to pay his own expenses. He negotiated a settlement which called for $1.6m in settlement money to be paid to his client on January 10 2018, but gave the client a fake settlement agreement that said the payment date was 10 March. In the second case in California, Avenatti was accused of embezzling a client’s money to pay his own expenses. He negotiated a settlement that called for $1.6m in settlement money to be paid to his client on January 10 2018, but gave the client a fake settlement agreement that said the payment date was 10 March.
He then took the money and used it to pay expenses for his coffee business – which runs Tully’s Coffee in California and Washington – and for personal expenses, prosecutors said.He then took the money and used it to pay expenses for his coffee business – which runs Tully’s Coffee in California and Washington – and for personal expenses, prosecutors said.
California prosecutors also accused him of giving a bank fake tax returns in order to get three loans totaling $4.1m for his law firm and coffee business in 2014.California prosecutors also accused him of giving a bank fake tax returns in order to get three loans totaling $4.1m for his law firm and coffee business in 2014.
He could face 50 years in prison on the California charges, prosecutors said.He could face 50 years in prison on the California charges, prosecutors said.
The high-profile attorney became a frequent presence on TV as the lawyer for Daniels.The high-profile attorney became a frequent presence on TV as the lawyer for Daniels.
“Knowing what I know now about Michael Avenatti, I am saddened but not shocked by news reports that he has been criminally charged today,” Daniels said Monday. “I made the decision more than a month ago to terminate Michael’s services after discovering that he had dealt with me extremely dishonestly.”“Knowing what I know now about Michael Avenatti, I am saddened but not shocked by news reports that he has been criminally charged today,” Daniels said Monday. “I made the decision more than a month ago to terminate Michael’s services after discovering that he had dealt with me extremely dishonestly.”
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