Attorney Michael Avenatti has been charged with ripping off porn star Stormy Daniels, the client who made him famous.

The allegations against Avenatti were revealed in charges filed Wednesday in New York.

Federal prosecutors say Avenatti took money Daniels was supposed to get from a book deal.

Daniels isn’t named in the court filing, but the details of the case make it clear that she is the client involved in the case.

Avenatti rocketed to fame representing Daniels when she sued to be released from a non-disclosure agreement involving an alleged tryst with President Donald Trump.

Avenatti was previously charged in New York and Los Angeles with trying to extort money from Nike and stealing millions of dollars from clients.

He has denied all the allegations. </s> (Reuters) - Lawyer Michael Avenatti was charged with 36 counts of fraud, tax evasion, identity theft and other financial crimes in an indictment made public by federal prosecutors in Los Angeles on Thursday.

The indictment came about three weeks after Avenatti, best known for representing adult film star Stormy Daniels in her legal battles with U.S. President Donald Trump, was arrested in New York on two separate criminal complaints filed by federal prosecutors in New York and California.

The indictment means the grand jury has found the California prosecutors have probable cause to pursue their charges. Avenatti has said he is innocent.

"I intend to fully fight all charges and plead NOT GUILTY. I look forward to the entire truth being known as opposed to a one-sided version meant to sideline me," Avenatti wrote on Twitter on Thursday.

The Los Angeles prosecutors have accused Avenatti of misusing a client's $1.6 million settlement to pay for his own expenses as well as those for his coffee business, and with defrauding a Mississippi bank of $4.1 million in loans by submitting false tax returns for 2011 to 2013 that inflated his income.

The New York prosecutors have separately accused Avenatti of trying to blackmail Nike Inc for more than $20 million.

Avenatti became a prominent critic of Trump and a frequent cable TV guest while representing Daniels, whose real name is Stephanie Clifford. She filed a lawsuit against the president over a nondisclosure agreement that in the weeks before the 2016 U.S. presidential election kept her from discussing her claims that they had an extramarital affair 10 years earlier.

Avenatti also involved himself in the investigation of sexual abuse charges against R&B singer R. Kelly by giving the Chicago state's attorney's office what he said was a tape of the performer having sex with an underage girl. </s> Michael Avenatti, the flamboyant lawyer who represented porn star Stormy Daniels in her legal battle with US President Donald Trump, has been indicted on charges of theft, fraud and tax evasion, authorities said Thursday.

Prosecutors say Avenatti stole millions of dollars from his own clients and kept millions of dollars in employment taxes that his coffee company should have paid to the Internal Revenue Service.

The 36-count indictment by a federal grand jury exposes Avenatti to up to 333 years behind bars if convicted, Nick Hanna, US Attorney for the Central District of California, said.

"In the event of his conviction, we seek to have proceeds of Mr. Avenatti's fraudulent conduct forfeited to the government. Authorities seized a $5 million jet that Mr. Avenatti co-owned, a purchase he made from money allegedly stolen from a client," Hanna told a news briefing.

The charges he faces include tax fraud, bank fraud and bankruptcy fraud.

"The financial investigation conducted by the IRS details a man who allegedly failed to meet his obligations to the government, stole from his clients, and used his ill-gotten gains to support his racing team, the ownership of Tully´s coffee shops, and a private jet," said IRS Acting Special Agent in Charge Ryan Korner.

The wire fraud charges are related to the more than $12 million he received for his clients from lawsuit settlements and other negotiations. The indictment alleges that Avenatti stole millions of dollars from clients he represented in four matters.

"In each of the four cases of embezzlement alleged in the indictment, Avenatti received money on behalf of clients into client trust accounts, misappropriated the money, and lied to the clients about receiving the money or, in one case, claimed that the money had already been sent to the client," a Justice Department statement explained.

Avenatti, who has been released on a $300,000 bond, is to be arraigned April 29 in United States District Court in Santa Ana, California.

"I intend to fully fight all charges and plead NOT GUILTY," the attorney said on Twitter. "I look forward to the entire truth being known as opposed to a one-sided version meant to sideline me."

Avenatti faces charges in a separate case in New York involving the sports apparel giant Nike.

According to that complaint, the celebrity attorney devised a scheme to extort millions of dollars from Nike by threatening to damage the company's reputation right before its quarterly earnings report and the start of the NCAA men's basketball tournament.

California-born Avenatti, 48, at one point entertained the possibility of running for president. He rose to fame after representing Daniels in her legal battles with Trump over hush money she received for an affair she allegedly had with Trump in 2006.

In addition to Daniels, Avenatti's clients have included singer R Kelly, and Julie Swetnick, who said she witnessed sexually abusive behavior by Brett Kavanaugh, the US Supreme Court justice whose volatile confirmation process was marked by multiple accusations of sexual assault when he was in high school and college. </s> Attorney Michael Avenatti has been arrested on charges of extortion and bank fraud.

Ciaran McEvoy, a spokesman for the U.S. attorney in Los Angeles, said that Avenatti faces federal charges in new York and California.

In New York, Avenatti is charged with trying to extort Nike by threatening to release damaging information about the company if it didn't pay him and his client $10 million.

A press conference is scheduled in Los Angeles Monday afternoon to discuss his charges in California.

A criminal complaint against Avenatti said that he spoke to Nike lawyers on the phone and threatened to "take billions of dollars off your client's market cap," according to CNBC.

Earlier today, Avenatti tweeted announcing a press conference to discuss claims against Nike. He claimed he would "disclose a major high school/college basketball scandal" by Nike.

Avenatti represented Stormy Daniels in her lawsuit against Donald Trump and his former lawyer Michael Cohen. Earlier this month, he announced he was no longer representing Daniels, but did not provide any further details.

The Associated Press contributed to this report.

This is a developing story. Check back for updates. </s> Michael Avenatti, the attorney who rocketed to fame through his representation of the pornographic film star and producer Stormy Daniels in her battles with Donald Trump, was charged on Wednesday with stealing from her to fund his lavish lifestyle.

Federal prosecutors in New York City say Avenatti used a doctored document to divert about $300,000 that Daniels was supposed to get as an advance from a book deal, then used the money for personal and business expenses. Only half of that money was paid back, prosecutors said.

“As alleged, he blatantly lied to and stole from his client to maintain his extravagant lifestyle, including to pay for, among other things, a monthly car payment on a Ferrari. Far from zealously representing his client, Avenatti, as alleged, instead engaged in outright deception and theft, victimizing rather than advocating for his client,” a statement from the United States attorney’s office for the southern district of New York said.

Daniels is not named in the court filing, but the details of the case, including the date her book was released, indicate she is the client involved. 

Avenatti denied the allegations in a variety of posts on Twitter.

“No monies relating to Ms. Daniels were ever misappropriated or mishandled. She received millions of dollars worth of legal services and we spent huge sums in expenses. She directly paid only $100.00 for all that she received. I look forward to a jury hearing the evidence,” he wrote.

The charges pile on top of previous allegations of legal misconduct by Avenatti, who represented Daniels when she sued to be released from a non-disclosure agreement involving an alleged affair with Trump in 2006.

Avenatti was previously charged in New York with trying to extort up to $25m from the sportswear giant Nike by threatening to expose claims that the shoemaker paid off high school basketball players in order to steer them to Nike-sponsored colleges. And in Los Angeles, he is facing a multi-count federal indictment alleging that he stole millions of dollars from clients, did not pay taxes, committed bank fraud and lied during bankruptcy proceedings.

Avenatti has denied the allegations against him on both coasts, saying he expects to be exonerated. The Los Angeles charges alone carry a potential penalty of more than 300 years in prison.

Daniels initially hired Avenatti to handle a lawsuit she filed last year in which she sought to invalidate the non-disclosure agreement she had signed with Trump’s then lawyer Michael Cohen in exchange for $130,000.

The money was supposed to buy her silence about an alleged affair with Trump, who denies that it took place. In August, Cohen pleaded guilty to violating campaign finance laws in connection with the payment.

Avenatti used to boast about bringing down Trump and even floated the notion that he should run for the Democratic nomination for president. His fortunes have since turned.

Daniels first publicly raised concerns about Avenatti’s conduct in November. In a statement, she said Avenatti had launched a fundraising effort to raise money for her legal case without telling her. She also said he had filed a defamation lawsuit against Trump, on her behalf, against her wishes. 



At the time, Avenatti responded that he was still Daniels’s “biggest champion”. 



The defamation case initiated by Avenatti against Trump backfired, with a judge ordering her to pay the president’s legal bills. 



In March Daniels said she had fired Avenatti a month earlier after “discovering that he had dealt with me extremely dishonestly”. She did not elaborate. </s> Adult-film actress Stephanie Clifford, also known as Stormy Daniels speaks US Federal Court with her lawyer Michael Avenatti (R) on April 16, 2018, in Lower Manhattan, New York.

Controversial lawyer Michael Avenatti was indicted Wednesday in separate cases charging him with stealing about $300,000 from his former porn star client Stormy Daniels, and with trying to extort athletic shoe giant Nike out of tens of millions of dollars by threatening to go public with claims the company was facilitating payments to the families of high school basketball stars.

While the Nike-related indictment was expected because it mirrors allegations in a criminal complaint executed against Avenatti in March, the claims related to Daniels were brand new.

Avenatti, who last year was mulling a run for the White House, is now charged in three separate federal indictments, including one pending in California related to alleged theft of client funds and other crimes, and faces the possibility of many years in prison if convicted.

According to one of the new indictments in New York, Avenatti allegedly forged Daniels' signature on a document that gave wire fund transfer information to her literary agent, which helped direct the money paid out for the book sales to a bank account controlled by Avenatt.

The lawyer had become widely known and notorious last year for his representation of Daniels, who was paid $140,000 on the eve of the 2016 presidential election by President Donald Trump's then-personal lawyer Michael Cohen to keep her quiet about her alleged sexual tryst with Trump a decade earlier. Trump denies having sex with her.

Prosecutors claim that Avenatti ripped off Daniels by taking payments for her book sales and paying her just half of what she was owed.

The indictment, which charges him with wire fraud and aggravated identity theft, accuses him of spending some of the money he allegedly swindled from Daniels on a lease payment for his Ferrari, travel expenses, dry cleaning and $56,000 in payroll at his law firm.

"Michael Avenatti abused and violated the core duty of an attorney – the duty to his client," said Manhattan U.S. Attorney Geoffrey S. Berman.

"As alleged, he used his position of trust to steal an advance on the client's book deal. As alleged, he blatantly lied to and stole from his client to maintain his extravagant lifestyle, including to pay for, among other things, a monthly car payment on a Ferrari. Far from zealously representing his client, Avenatti, as alleged, instead engaged in outright deception and theft, victimizing rather than advocating for his client." </s> NEW YORK (Reuters) - Michael Avenatti's legal troubles escalated on Wednesday as federal prosecutors announced new indictments accusing the lawyer and prominent critic of U.S. President Donald Trump of ripping off porn star Stormy Daniels and extorting Nike Inc.

Prosecutors in Manhattan accused Avenatti, 48, of stealing about $300,000 from Daniels, the client who made him famous, to fund an extravagant lifestyle including a Ferrari automobile, after helping her secure a book contract.

The Nike indictment concerns charges announced in March that Avenatti tried to extort more than $20 million from the athletic wear company by threatening to expose what he called its improper payments to recruits for college basketball teams it sponsored.

Avenatti also faces dozens of charges in southern California, where prosecutors on April 11 accused him of stealing millions of dollars from clients to pay for personal and business expenses, and lying to the Internal Revenue Service and a Mississippi bank about his finances.

If convicted on all charges, Avenatti could face more than 400 years in prison, but would likely face a lesser punishment.

Nike has denied wrongdoing, and assisted prosecutors prior to Avenatti's arrest.

Avenatti has maintained his innocence and said the earlier prosecutions were to punish him for representing Daniels and criticizing Trump.

Daniels, whose real name is Stephanie Clifford, received hush money to keep quiet about an affair she claimed to have had with Trump in 2006. The president has denied having had sex with Daniels.

"I look forward to a jury hearing all of the evidence and passing judgment on my conduct," Avenatti wrote on Twitter after the indictments were announced.

"At no time was any money misappropriated or mishandled. I will be fully exonerated once the relevant emails, contracts, text messages, and documents are presented."

He later said in an email that Daniels had received "millions of dollars worth of legal services."

Lawyers for Avenatti did not immediately respond to requests for comment. Daniels could not immediately be reached.

Avenatti represented Daniels in lawsuits arising from a $130,000 hush money payment from former Trump lawyer Michael Cohen shortly before the 2016 presidential election.

Prosecutors said Avenatti diverted two $148,750 installment payments from Daniels' $800,000 book advance, after sending her literary agent a letter that forged her signature, and directed that money be sent to his bank account.

Daniels is identified in court papers as "Victim-1." A person familiar with the matter who was not authorized to speak publicly confirmed her identity.

According to the papers, Avenatti spent some of the diverted funds on lease payments for the Ferrari, hotels, airfare, restaurant meals, car service and business expenses.

Prosecutors said Avenatti eventually paid $148,750 to Daniels after obtaining the money from another source, but lied when she asked where the second payment was by telling her the publisher "owes me a payment" and that he was "on it."

Daniels has not received that payment, prosecutors said. She dropped Avenatti as her lawyer earlier this year.

"Michael Avenatti abused and violated the core duty of an attorney--the duty to his client," U.S. Attorney Geoffrey Berman, who announced Wednesday's indictments, said in a statement.

"Far from zealously representing his client, Avenatti, as alleged, instead engaged in outright deception and theft, victimizing rather than advocating for his client," Berman added.

The charges related to Daniels include one count of wire fraud and one count of aggravated identity theft, and carry a maximum combined penalty of 22 years in prison.

Cohen is two weeks into his three-year prison term after pleading guilty to campaign finance violations, including the hush money payment.

Avenatti became a familiar face on cable news channels as his stature grew, and flirted last year with a 2020 White House run. He has had a lower profile since being charged. </s> LOS ANGELES (AP) — U.S. prosecutors have charged Trump critic and attorney Michael Avenatti with extortion and bank and wire fraud.

A spokesman for the U.S. attorney in Los Angeles said Avenatti was arrested Monday in New York.

Spokesman Ciaran McEvoy says the lawyer best known for representing porn actress Stormy Daniels in lawsuits against President Donald Trump faces federal charges in New York and California.

In New York, he was accused of threatening to use his ability to get publicity to harm Nike. Prosecutors say he demanded that the apparel company give him $10 million.

Prosecutors in California planned to release more details at a news conference later Monday.

Avenatti represented Daniels, whose real name is Stephanie Clifford, in a lawsuit to break a confidentiality agreement to speak about her alleged affair with Trump. </s> Michael Avenatti's legal troubles escalated on Wednesday as federal prosecutors announced new criminal charges accusing the lawyer and prominent critic of U.S. President Donald Trump of stealing from porn star Stormy Daniels and extorting Nike Inc.

Michael Avenatti's legal troubles escalated on Wednesday as federal prosecutors announced new criminal charges accusing the lawyer and prominent critic of U.S. President Donald Trump of stealing from porn star Stormy Daniels and extorting Nike Inc.

Prosecutors accused Avenatti, 48, of stealing about $300,000 from Daniels, about half of which has not been repaid, after helping his former client secure a book contract.

They also said he has been indicted on previously announced charges that he tried to blackmail Nike out of more than $20 million by threatening to expose what he called the athletic wear company's improper payments to recruits for college basketball teams it sponsored.

The charges were announced by U.S. Attorney Geoffrey Berman in Manhattan.

Avenatti also faces dozens of charges in California, where prosecutors on April 11 accused him of stealing millions of dollars from clients to pay for personal and business expenses, and lying to the Internal Revenue Service and a Mississippi bank about his finances.

If convicted on all charges, Avenatti could face several hundred years in prison.

Avenatti has maintained his innocence, and said the earlier prosecutions were a means to punish him for representing Daniels and being a Trump critic.

"I look forward to a jury hearing all of the evidence and passing judgment on my conduct," he wrote on Twitter after Wednesday's charges were announced.

"At no time was any money misappropriated or mishandled," he added. "I will be fully exonerated once the relevant emails, contracts, text messages, and documents are presented."

Lawyers for Avenatti did not immediately respond to requests for comment.

Avenatti represented Daniels in lawsuits arising from what she called her 2006 sexual relationship with Trump, and a $130,000 hush money payment from former Trump lawyer Michael Cohen shortly before the 2016 presidential election.

According to court papers, Avenatti diverted a significant portion of Daniels' $800,000 book advance after sending her literary agent an unauthorized letter purporting to contain her signature, and directing that money be sent to his bank account.

Prosecutors said Avenatti spent some diverted money on monthly lease payments for a Ferrari, hotels, airfare, restaurant meals, car service and business expenses.

When Daniels asked why she had not received a $148,750 installment payment, Avenatti lied by telling her he had yet to receive it from the publisher, according to court papers.

Prosecutors said he later paid Daniels with money obtained from another source, so she would not realize it had been diverted.

Daniels, whose real name is Stephanie Clifford, is identified in court papers as "Victim-1." A person familiar with the matter who was not authorized to speak publicly confirmed her identity.

The charges related to Daniels include one count of wire fraud and one count of aggravated identity theft, and carry a maximum combined penalty of 22 years in prison.

Trump has denied having had sex with Daniels. Cohen is two weeks into his three-year prison term after pleading guilty to campaign finance violations, including the hush money payment.

Avenatti, who flirted last year with a 2020 White House run, became a familiar face on cable news channels as his stature grew, but has had a lower profile since being indicted.
Lawyer Michael Avenatti is indicted in separate cases charging him with allegedly stealing about $300,000 from Stormy Daniels and blackmailing Nike.