Michael Avenatti Sentenced To Another 14 Years In Prison For Fraud

Topline

A federal judge sentenced former attorney and Trump foe Michael Avenatti to 14 years in prison Monday for embezzling clients’ money and violating tax laws, on top of five years of prison time he is already serving for two prior criminal convictions, a dramatic fall from grace for an attorney who became famous by representing adult film actress Stormy Daniels in her lawsuit against Trump.

Key Facts

California-based Judge James Selna said Avenatti’s prison term will run consecutive to two separate federal sentences: One imposed after Avenatti was convicted of trying to extort Nike, and another after Avenatti was found guilty of stealing Daniels’ money.

Selna also ordered Avenatti to pay more than $10 million in restitution to victims and the Internal Revenue Service, according to the U.S. Attorney’s office in Los Angeles.

Avenatti pleaded guilty to five counts of wire fraud and tax offenses earlier this year, after prosecutors said he stole millions of dollars in settlement money from several of his clients—including one paraplegic man—to pay for expenses at a coffee business he co-owned, and obstructed federal efforts to collect payroll taxes for that business.

Prosecutors asked Selna to sentence Avenatti to 17.5 years, calling his behavior “cruel” and “callous” and noting he “stole from his clients instead of advocating for them” in court papers filed two months ago.

Avenatti asked for a 6-year prison term served concurrently with his earlier sentences, with his attorneys admitting in a sentencing memo he was “selfish” and “deserves just punishment for his crimes,” but arguing he has taken responsibility for his behavior and apologized to his victims.

Key Background

Avenatti rose to prominence by representing Daniels, who said she was paid hush money to stay quiet about an extramarital affair with former President Donald Trump. Daniels sued Trump in 2018, seeking to nullify a nondisclosure agreement about the affair. The scandal made Avenatti a cable news regular and an outspoken Trump antagonist, leading to speculation that Avenatti may run for president—a rumor the pugnacious and publicity-friendly lawyer made no effort to quell. However, Avenatti’s public image crumbled in 2019, after federal prosecutors in New York and Los Angeles hit him with a trio of damning charges: He was accused of extorting Nike by lobbing allegations of corruption at the company, stealing roughly $300,000 from Daniels’ book advance and taking money from clients of his California law practice. In the California case that led up to Monday’s sentence, the Department of Justice said Avenatti used clients’ money for his own expenses, lied to those clients about the status of their settlement payments and misled the IRS.

Surprising Fact

The 14-year sentence comes after years of legal wrangling between Avenatti and prosecutors. The attorney initially pleaded not guilty and chose to represent himself at trial (when the judge asked Avenatti if he had any criminal law experience, he reportedly cited his experience as a defendant in the Nike extortion trial). The case went to trial last summer, but the judge declared a mistrial due to a dispute about evidence, leading Avenatti to unsuccessfully ask an appeals court to toss out the case entirely. Avenatti eventually pleaded guilty to five of the 36 charges against him, and prosecutors chose to drop the remaining 31 counts.

Source: https://www.forbes.com/sites/joewalsh/2022/12/05/michael-avenatti-sentenced-to-another-14-years-in-prison-for-fraud/