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U.S. NEWS Thursday 23 May 2019
Michael Avenatti charged with

defrauding Stormy Daniels

By JIM MUSTIAN and LARRY indictment alleging that he
NEUMEISTER stole millions of dollars from
Associated Press clients, didn't pay taxes,
NEW YORK (AP) — Michael committed bank fraud and
Avenatti, the attorney who lied during bankruptcy pro-
rocketed to fame through ceedings.
his representation of porn Avenatti has denied the
star Stormy Daniels in her allegations against him on
battles with President Don- both coasts, saying he ex-
ald Trump, was charged pects to be exonerated.
Wednesday with ripping The Los Angeles charges
her off. alone carry a potential
Federal prosecutors in New penalty of more than 300
York City say Avenatti used years in prison.
a doctored document to "I look forward to a jury
divert about $300,000 that hearing all of the evidence In this April 16, 2018 file photo, adult film actress Stormy Daniels,
Daniels was supposed to and passing judgment on left, stands with her lawyer Michael Avenatti as she speaks out-
get from a book deal, then my conduct," Avenatti side federal court, in New York.
used the money for person- wrote in a text message to Associated Press
al and business expenses. The Associated Press.
Only half of that money Daniels, whose real name with Avenatti about late against Trump, on her be-
was paid back, prosecu- is Stephanie Clifford, initially payments around the time half, against her wishes.
tors said. hired Avenatti to handle a her book, "Full Disclosure," "For months I've asked Mi-
Daniels isn't named in the lawsuit she filed last year was published in October, chael Avenatti to give
court filing, but the de- in which she sought to in- according to the indict- me accounting informa-
tails of the case, including validate the nondisclosure ment. tion about the fund my
the date her book was re- agreement she'd signed "When is the publisher go- supporters so generously
leased, make it clear that with Trump's then-lawyer ing to cough up my mon- donated to for my safety
she is the client involved. Michael Cohen in ex- ey," she asked Avenatti in and legal defense. He has
Avenatti denied the alle- change for $130,000. early December, accord- repeatedly ignored those
gations on Twitter. The money was supposed ing to the indictment. requests," she said. "Days
"No monies relating to Ms. to buy her silence during Avenatti responded that ago I demanded again,
Daniels were ever misap- Trump's run for president he was "working them and repeatedly, that he tell me
propriated or mishandled. about an alleged affair be- threatening litigation," pros- how the money was being
She received millions of tween the two. In August, ecutors said, but he did not spent and how much was
dollars worth of legal ser- Cohen pleaded guilty to vi- tell Daniels he had already left. Instead of answering
vices and we spent huge olating campaign finance received the money. me, without my permission
sums in expenses. She di- laws in connection with the Daniels began publicly or even my knowledge Mi-
rectly paid only $100.00 for payment. raising concerns about chael launched another
all that she received. I look In announcing the new Avenatti's conduct in No- crowdfunding campaign
forward to a jury hearing charges Wednesday, pros- vember. In a statement, to raise money on my be-
the evidence," he wrote. ecutors said that Avenatti she said Avenatti had half. I learned about it on
Avenatti added in a later sent a "fraudulent and un- launched a fundraising ef- Twitter."
tweet that his agreement authorized letter" to Dan- fort to raise money for her At the time, Avenatti re-
for representing Daniels "in- iels' literary agent, instruct- legal case without telling sponded that he was
cluded a percentage of ing the agent to send pay- her. She also said he had still Daniels' "biggest
any book proceeds." ments not to Daniels but to filed a defamation lawsuit champion."q
The charges pile on top of a bank account Avenatti
previous allegations of le- controlled. They said he
gal misconduct by Avenat- used the stolen funds to
ti, who represented Daniels pay employees of his law
when she sued to be re- firm and pay for hotels, air-
leased from a nondisclo- fare, dry cleaning and his
sure agreement involving Ferrari.
an alleged tryst with Trump. "Far from zealously repre-
The president denies an af- senting his client, Avenatti,
fair took place. as alleged, instead en-
Avenatti was previously gaged in outright decep-
charged in New York with tion and theft, victimizing
trying to extort up to $25 rather than advocating for
million from Nike by threat- his client," Manhattan U.S.
ening to expose claims Attorney Geoffrey Berman
that the shoemaker paid said in news release.
off high school basketball Avenatti "blatantly lied"
players to steer them to and stole to maintain his
Nike-sponsored colleges. "extravagant lifestyle," Ber-
And in Los Angeles, he's man said.
facing a multicount federal Daniels raised concerns