Michael Avenatti Indicted For Allegedly Stealing Paraplegic Client's Settlement Money

Michael Avenatti charged in 36-count federal indictment

US Atty Nick Hanna & the IRS are holding a news conference in Los Angeles at 9am Pacific time. Cohen pleaded guilty and is set to report to prison next month, and Avenatti and Daniels have parted ways.

"I look forward to the entire truth being known as opposed to a one-sided version meant to sideline me", Avenatti, who is free on a $300,000 bond, wrote on Twitter on Thursday.

Thursday's indictment from a grand jury comes two weeks after federal prosecutors in Manhattan and Los Angeles charged Avenatti, who became a household name during his representation of adult-film actress Stephanie Clifford, known professionally as Stormy Daniels, almost simultaneously in two criminal cases, unsealing complaints that alleged he attempted to extort more than $20 million from sportswear company Nike and that he committed wire and bank fraud.

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.

In the California case, Avenatti was initially charged with bank and wire fraud, now eclipsed by a wide array of other alleged crimes.

The indictment also stated that Avenatti received $2.75 million in proceeds for settlement but hid that from another client.

The indictments include the two charges filed against him in March, including allegations that Avenatti submitted fake financial information to a MS bank in order to get three loans worth $4.1 million.




Embattled California attorney Michael Avenatti will be named in an indictment at noon EST on Thursday.

This comes after the 48-year-old was charged this week for filing false tax returns to secure four million dollars loans and withholding millions from a client.

Those clients include "Client 1", a man who is paraplegic and who won a $4 million settlement from Los Angeles County. Prosecutors say he failed to file personal income tax returns since 2010 and did not file tax returns for his law firms, which led to his not paying millions in taxes.

Two years after the settlement was reached, Avenatti allegedly helped Johnson find a real estate agent to buy a house.

Until last month, Avenatti had only provided $124,000 over 69 payments to Johnson, the indictment said.

The most glaring example of deception and fraud was described in the indictment as scheming Avenatti allegedly did to deprive clients of money they were due from court settlements, legal negotiations or sales of stock and actions he took to cover his tracks. The charges say he used a similar method to steal $2.75 million from another client. The client was also denied social security benefits when Avenatti failed to respond to the administration on the client's behalf, fearing that disclosure of information the administration sought would expose Avenatti's scheme.

After Avenatti was questioned about the alleged embezzlement during a judgment-debtor examination in federal court March 22, the indictment said he fabricated a defence for himself. Avenatti is accused of having the money wired to him and hiding it from the victim for years.

Related news:

Hot News

isis-killer-beheading-video-story-top It’s Over! Wendy William Files For Divorce From Husband Kevin Hunter
Apr 12, 2019 - 10:31
Hunter has been the topic of persistent cheating rumors, including a claim that he fathered a child with a long-time mistress. Cape Town - According to several online reports, talk show host Wendy Williams has split from hubby Kevin Hunter .

isis-killer-beheading-video-story-top Israel Becomes The Fourth Nation To Land On The Moon
Apr 12, 2019 - 09:45
Pepper watch the live broadcast of the SpaceIL spacecraft as it lost contact with Earth in Netanya, Thursday, April 11, 2019. Confirming the Israeli mission failure, Opher Doron, the general manager of IAI, said, "We had a failure of the spacecraft".

isis-killer-beheading-video-story-top Disney's streaming service to launch on November 12 in US
Apr 12, 2019 - 09:44
The service will include five different hubs covering Disney , Pixar, Marvel , Star Wars and National Geographic. Disney Plus will launch November 12 in the USA for $7 a month, or $70 a month if you get an annual subscription.

isis-killer-beheading-video-story-top Minnesota Wild Season Ends Without Playoffs, but Chance Top Pick
Apr 12, 2019 - 09:43
This isn't to say Nolan Patrick won't be a good hockey player, but is now off to a slower start than Hischier. The New York Rangers will pick No. 2, and the Chicago Blackhawks won the No. 3 selection.

isis-killer-beheading-video-story-top AOC: Climate Change Is a 'Major Factor' Driving the Migrant Crisis
Apr 11, 2019 - 05:26
Former Democratic Congressman Joe Crowley reportedly could have shoveled political dirt on current New York Democratic Rep. However, it has been criticized by many, including by some Democrats, for being too ambitious and too expensive.

isis-killer-beheading-video-story-top AG Barr indicates support for STATES Act marijuana bill
Apr 11, 2019 - 04:11
House Judiciary Committee Chairman Representative Jerrold Nadler reacted on Twitter saying Barr's "comments directly contradict what DOJ previously told us.

isis-killer-beheading-video-story-top First look today? Event Horizon Telescope will tell soon
Apr 11, 2019 - 02:44
But many more people couldn't help but see the eye of Sauron from "The Lord of the Rings " in the black hole . Here's a simulation of what the Event Horizon Team thought the black hole would look like.

isis-killer-beheading-video-story-top BJP MLA, 4 policemen die in naxal attack
Apr 10, 2019 - 08:14
BJP MLA Bheema Mandavi and four others lost their lives on Tuesday in a dastardly attack carried out by Naxals in Dantewada. Chief Minister Bhupesh Baghel, through a series of tweets said that this was an attack on "parliamentary democracy".

New York Mandates Vaccine To Contain Brooklyn Measles Outbreak
Apr 10, 2019 - 07:53
Officials said they would help people arrange to get shots but were prepared to fine them as much as $1,000 if they refused. Most of the NY cases involved unvaccinated or incompletely vaccinated individuals, according to Mr de Blasio's office.

isis-killer-beheading-video-story-top Barcelona Are The Biggest Spenders On Wages In The Champions League
Apr 10, 2019 - 05:57
"We weren't lucky with the ref against PSG where they should have had a man sent off so we hope for some luck there as well". They've scored two goals in eight of their last nine games, and it seems likely that they'll find the net here in this one.

isis-killer-beheading-video-story-top India elections: Imran Khan calls Indian leaders ‘MORALLY BANKRUPT’ over Kashmir threat
Apr 10, 2019 - 05:18
The BJP has not yet reacted to the error in the manifesto, released just two days before the national elections begin. BJP President Amit Shah on Tuesday claimed that people have decided to make Narendra Modi the Prime Minister again.

isis-killer-beheading-video-story-top Rep. Ilhan Omar criticized for calling Stephen Miller a white nationalist
Apr 10, 2019 - 03:56
All three have expressed hard-line views on illegal immigration, and could have difficulty winning confirmation in the U.S. Her departure provides political fodder but little comfort, given Trump's demands for ever more severe policies.

isis-killer-beheading-video-story-top Google Pixel 3a & More Products Indirectly Confirmed By Google
Apr 10, 2019 - 03:15
Apparently not satisfied with just one unfortunate leak, Google has leaked the phones again, this time through its online store. Both phones were rumored to arrive in early Spring, and if that info is accurate, both phones will arrive really soon.

isis-killer-beheading-video-story-top Baylor defeats Oregon 72-67 in NCAA women's Final Four
Apr 09, 2019 - 07:58
We'll have a chance to look back on this and say and realize that this was an incredible season, incredible season. She whipped around and gave Richards an ice-cold stare for just a moment before her teammates picked her up.

isis-killer-beheading-video-story-top This massive python just broke a record in the Florida Everglades
Apr 09, 2019 - 07:30
The state has also sponsored removal programs with prize incentives, such as the Python Pickup Program and regular public hunts. Python hunters continue to remove the invasive snakes from South Florida, and they seem to be getting bigger.