Michael Avenatti Indicted on 36 Financial Crimes Charges

Michael Avenatti Indicted on 36 Financial Crimes Charges

A federal grand jury in California has indicted celebrity attorney Michael Avenatti on 36 counts, including embezzlement, wire fraud, tax evasion, bankruptcy fraud and bank fraud connected to his alleged theft of tens of millions of dollars from five clients, one a paraplegic.

A hearing was set for 9 a.m. PDT Thursday, when federal prosecutors will release more information in the case.

"Money generated from one set of crimes appears in other sets - typically in the form of payments to lull victims and to prevent Mr. Avenatti's financial house of cards from collapsing", Hanna said in a statement.

In another case, Avenatti won a $2.75 million settlement for a client.

Attorney Michael Avenatti speaks to the press after leaving the federal court house in Manhattan on March 25, 2019 in New York City. He's now free on bail.

"Along the way, I have made many powerful enemies", he said in an emailed statement.


On March 25, prosecutors in the Southern District of NY alleged that Avenatti tried to extract more than $20 million from Nike, and said if the company did not pay him, he would hold a press conference attacking the company. An indictment is expected soon in that case. He was also charged with wire and bank fraud for allegedly using a client's settlement money to pay for own personal expenses.

The indictment is consistent with The Daily Caller News Foundation's previous reporting on Avenatti's management of Tully's coffee chain.

Under State Bar of California rules of professional conduct, a lawyer must promptly notify a client of the receipt of any funds they are entrusted to hold for the client and turn over the money at the client's request.

The indictment said he defrauded a MS bank of $4.1 million in loans by submitting false tax returns for 2011 to 2013 that inflated his income.

In the case of the paraplegic client, for example, Avenatti, after having pocketed the client's $4 million settlement from a lawsuit against the county of Los Angeles, directed a small portion of what the client was owed, $124,000, to be paid to the client and made some payments to assisted living facilities to cover the client's rent, according to the indictment.

After getting the $4 million, the indictment says, Avenatti did not tell Johnson the money had arrived.


He has denied wrongdoing, and says the truth will come out.

He also faces 19 counts relating to tax offenses, including failing to file his personal income tax returns in 2010.

The indictment also stated that Avenatti received $2.75 million in proceeds for settlement but hid that from another client. He is accused of obstructing IRS efforts to collect the taxes and of lying to an IRS revenue officer.

Listen to the Guys Who Law talk about Avenatti's troubles below! He responded "no" when he was asked whether Eagan Avenatti had received legal fees when it was representing ticket holders who sued the National Football League over seating snafus at the 2011 Super Bowl in Texas.

In addition to Client 1, Hanna said, Avenatti followed a similar pattern with four other clients.


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