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Michael Avenatti charged with extortion

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Fern

Elite Member
Super Moderator
Sep 30, 2003
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Avenatti is a slime, but there's some muddiness in the law over whether this sort of thing constitutes illegal extortion or the legal kind. I give him a fair chance of getting off.
Can you explain a bit pls.

1. He's demanding a huge payment to himself, not his client, and he's not the aggrieved/damaged party. This would seem extortion with a 'client" tacked on to lend a patina of legality. Of course add to that his threat to make allegations against Nike timed to coincide with investor calls. And his threat seems not to sue them for damages his client suffered, but to damage their stock price.

2. He's alleging criminal behavior on Nike's part. He's then demanding payment to not report said illegal activity. I understand that to be illegal.

E.g., as a CPA in the course of my work for a client I notice them engaged in illegal activity. I cannot demand money to keep quiet.

That appears to be what's happening here. Are you suggesting that by having an attorney in between the coach and Nike it is now legal?

I note that Avenatti is not representing Nike and there is attorney- client priv.

Fern
 
Last edited:
Nov 8, 2012
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What do LA and CA have to do with a federal prosecution initiated by the SDNY?
Sorry - you're correct. Both are FEDERAL cases - but there are two separate cases. One originating from NY, and one from CA.

Avenatti also was separately charged in a second federal case in Los Angeles with embezzling a client's money "in order to pay his own expenses and debts" and those of his law firm and coffee company, and of "defrauding a bank in Mississippi," prosecutors said.
https://www.cnbc.com/2019/03/25/michael-avenatti-to-be-charged-with-wire-and-bank-fraud.html
 

woolfe9998

Diamond Member
Apr 8, 2013
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Can you explain a bit pls.

1. He's demanding a huge payment to himself, not his client, and he's not the aggrieved/damaged party. This would seem extortion with a 'client" tacked on to lend a patina of legality. Of course add to that his threat to make allegations against Nike timed to coincide with investor calls. And his threat seems not to sue them, but to damage their stock price.

2. He's alleging criminal behavior on Nike's part. He's then demanding payment to not report said illegal activity.
One of the reports mentioned that he made two alternative demands. One was for $1 million for his client and $20 million for himself as a "consulting fee." The other was just a straight $21 million for his client, presumably with him taking a large contingency fee out of it.

There are several problems here with attorney ethics rules. For one, you can't threaten to report someone to the police, or out them to the press, as leverage for settlement. It's done all the time implicitly, but if you make it explicit, it's an ethics problem. For another, he arguably screwed his own client by making himself the main beneficiary of settlement, likely without his client knowing about it. This is probably the more serious of the two issues.

However, ethics violations aren't the same as crimes. He's going to have a defense that this was one alternative settlement proposal he made to Nike. There is some ambiguity in the law about where the line is between legal and illegal extortion. So he may get off. That's just the extortion part though. He's got other serious charges pending against him.
 

Fern

Elite Member
Super Moderator
Sep 30, 2003
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I read the CA complaint. Looks like he's got real problems:

1. Stole client funds. I have on numerous occasions seen attorneys "borrow" from a cliet's escrow acct with the intention of repaying funds but then through financial problems not doing so. This generally results in prison time.

2. He submitted "phony" tax returns to the bank for a loan. A bank requires copies of tax returns as filed with the IRS. The tax returns he submitted to the bank were different from those filed with the IRS.

Fern
 

Fern

Elite Member
Super Moderator
Sep 30, 2003
26,914
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Wolf

When you get chance check my post again. My PC froze whilst typing and my post was incomplete. If my additional comments make any difference pls comment.

TX

Fern
 

Jhhnn

No Lifer
Nov 11, 1999
57,970
10,360
126
I read the CA complaint. Looks like he's got real problems:

1. Stole client funds. I have on numerous occasions seen attorneys "borrow" from a cliet's escrow acct with the intention of repaying funds but then through financial problems not doing so. This generally results in prison time.

2. He submitted "phony" tax returns to the bank for a loan. A bank requires copies of tax returns as filed with the IRS. The tax returns he submitted to the bank were different from those filed with the IRS.

Fern
His problems in CA have been simmering for some while. I figure he got desperate for money & thought he might be able to strong arm Nike to get it. Ooops.
 

brandonbull

Diamond Member
May 3, 2005
5,352
445
126
well, if it weren't for Trump being POTUS, this guy never would have been a public figure. so...yeah!
Except he was a shyster before Trump became our POTUS. Trump gave Barbara Bush a heart attack and now made Avenatti extort people. I guess Avenatti learned from Trump and not during his time under Rahm Emanuel, and the liberal media really struck gold with him and him co-conspirator.
 

UNCjigga

Lifer
Dec 12, 2000
21,456
3,236
126
I read the CA complaint. Looks like he's got real problems:

1. Stole client funds. I have on numerous occasions seen attorneys "borrow" from a cliet's escrow acct with the intention of repaying funds but then through financial problems not doing so. This generally results in prison time.

2. He submitted "phony" tax returns to the bank for a loan. A bank requires copies of tax returns as filed with the IRS. The tax returns he submitted to the bank were different from those filed with the IRS.

Fern
So in other words, he inflated his assets to secure a loan from a bank?? Where have I heard that one before....
 

BlueWeasel

Lifer
Jun 2, 2000
15,743
93
91
I don't under why he got loans from a small regional bank in Mississippi. I guess the thinking there is a small bank would be less likely to uncover his fraud?
 

zinfamous

No Lifer
Jul 12, 2006
99,999
13,987
136
I disagree. Odds are he was a turd long before Trump was elected. Just not a public turd.
uh, that was my point bro--I explicitly said "public figure," lol--which is precisely why this guy (exactly like Trump) is actually a problem. None of us need either of these two fucks in our radars, but here they are....

Besides, it was a joke.
 

Fern

Elite Member
Super Moderator
Sep 30, 2003
26,914
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So in other words, he inflated his assets to secure a loan from a bank?? Where have I heard that one before....
No.

Banks generally also require a Personal Financial Statement, which reflect assets etc, in addition to the tax returns. Those two things are completely different.

Fern
 

Jhhnn

No Lifer
Nov 11, 1999
57,970
10,360
126
If he is found guilty: Bending over selling his ass in prison.
Not really. He can readily parlay his lawyering skills to make friends on the inside. Guys file suit & make appeals just for a road trip to the outside.
 
Nov 8, 2012
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Update: Charged with 36 new crimes



Hahjahahaha what a fucking douchebag. You want publicity? You want attention? You got it you fucking idiot


Federal prosecutors in California announced on Thursday three dozen charges against Michael Avenatti, the prominent attorney best known for his criticisms of President Trump, accusing the lawyer of stealing millions of dollars from his clients and funneling their money into his own interests, including co-ownership of a $5 million private jet.

The indictment was sweeping in its scope, accusing Avenatti of defrauding clients over a period spanning more than four years. The charges included bleak details, such as claims that Avenatti’s alleged actions caused a paraplegic client to lose his Supplemental Security Income benefits, which are paid to adults and children with disabilities, and prevented the same client from using settlement money to buy a home.

Avenatti denied wrongdoing and wrote on Twitter that he will “fully fight all charges and plead NOT GUILTY.” The California case against him is separate from the federal case in New York accusing Avenatti of trying to extort Nike, the sports apparel behemoth.
https://www.washingtonpost.com/politics/2019/04/11/michael-avenatti-hit-with-federal-charges-including-tax-fraud-embezzlement-report-says/?utm_term=.c9c23d41b47e
 

compuwiz1

Admin Emeritus Elite Member
Oct 9, 1999
26,833
649
126
He's in deep shit. This guy, once a hero of the left, because he was working toward bringing down Trump, turns out the be one of the biggest crooks around. He will be going away for a long, long time. Bye scum bum!
 
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zinfamous

No Lifer
Jul 12, 2006
99,999
13,987
136
He's in deep shit. This guy, once a hero of the left, because he was working toward bringing down Trump, turns out the be one of the biggest crooks around. He will be going away for a long, long time. Bye scum bum!
lol--when was that, actually? No one ever really liked the guy.

It's just funny that you so objectively define this douche as one of the worst crooks, yet objectively knowing that if Trump didn't have POTUS next to his name, he would have been convicted on at least as many crimes as his buddy Cohen by now. You actually know this is true, but you don't fucking care.

lol--one of the biggest crooks around? This particular publicity whore can't even come close to Trump in that department. And you know it.
 
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Nov 8, 2012
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woolfe9998

Diamond Member
Apr 8, 2013
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Hey remember this guy?

His bail has been revoked. Apparently he can't stop criming even when on bail for his previous criming.

The man is obviously a scumbag so it's a good thing he isn't even trying to run.
 

JSt0rm

Lifer
Sep 5, 2000
27,330
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cytg111

Lifer
Mar 17, 2008
11,890
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Ehm ... from the looks of it, I get this :
- Man scorn.
- My exwife will get nothing - over my dead body.
- He executes and burns it all down.
 

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