Michael Avenatti Charged With Bank, Tax Fraud in Grand Jury Indictment

by Garry Watts April 12, 2019, 1:57
Michael Avenatti Charged With Bank, Tax Fraud in Grand Jury Indictment

An indictment filed against Avenatti, Wednesday, April 10, alleges he stole millions of dollars from clients, didn't pay his taxes, committed bank fraud and lied in bankruptcy proceedings.

Avenatti tweeted Thursday that he intends to fight all of the charges and says he looks forward to the truth being known, as opposed to what he characterizes as a "one-sided version".

In New York, Avenatti faces two counts of extortion for his alleged role in what prosecutors called "an old-fashioned shakedown" of Nike.

Federal prosecutors say attorney Michael Avenatti has been charged in a 36-count federal indictment in Southern California.

Avenatti shot to overnight fame previous year as the counsel for Stormy Daniels, the adult film actress who claims to have had sexual relations with President Donald Trump, and his bulldog approach to taking on the president and his legal team helped garner him endless spots on cable TV news shows.

But the charges handed down Thursday are only part of Avenatti's troubles.

Among the allegations made by the Internal Revenue Service and federal prosecutors in Los Angeles on Thursday are charges that he withheld a $4 million settlement from a paraplegic man and used it to help fund his own lavish lifestyle and to prop up his coffee business and racing team.

According to details obtained by the Los Angeles Times, prosecutors are expected to announce that Avenatti stole "millions of dollars from five clients and used a tangled web of shell companies and bank accounts to cover up the theft".

Kirstjen Nielsen, Department of Homeland Security Secretary, is resigning from her position
It remains unclear whether Nielsen has made a decision to leave voluntary, or whether she has been pressured to resign. She was tasked with helping states secure elections following Russian interference during the 2016 election.

"Money generated from one set of crimes was used to further other crimes, typically in the form of payments created to string along victims, so as to prevent Mr. Avenatti's financial house of cards from collapsing", Hanna said.

Hanna also said Avenatti submitted "clearly fake" income tax form to receive a loan.

Avenatti waived his right to a preliminary hearing in federal court in Santa Ana.

Avenatti has denied any wrongdoing, taking to Twitter to assert his innocence.

"Avenatti concealed the receipt of the settlement from Client 1 and instead gave him periodic "advances" of no more than $1,900 and paid the rent for his assisted living facility", the statement said.

Those clients include "Client 1", a man who is paraplegic and who won a $4 million settlement from Los Angeles County.

"Any claim that any monies due clients were mishandled is bogus nonsense". In one example in the indictment, Avenatti answered "no" under oath during the proceeding when asked if his firm received any fees from the Super Bowl NFL litigation.

In recent months, Avenatti has attached himself to other controversial matters, representing a woman who claimed misconduct by US Supreme Court Justice Brett Kavanaugh while he was in high school and several parties connected to a case against musician R. Kelly. He allegedly also hid $2.75 million from another client.

Recommended News


TOP News

Police Say Nipsey Hussle Killing Tied To Personal Dispute, Not Gang Violence
Police said earlier that Holder was still at large, having fled the crime scene in a vehicle driven by an unidentified woman . New footage of rapper Nipsey Hussle's murder shows a clearer look at the violent shooting and the alleged suspect .

Accused killer of rapper Nipsey Hussle pleads not guilty in LA
Local news reports said he was being kept in solitary confinement in jail for fear he might be attacked by other inmates. The two victims are identified in the criminal complaint as Kerry Lathan and Shermi Cervabta Villanueva .

'Our country is full': Trump says migrants straining system
Trump made the comments during a speech to the Republican Jewish Coalition in Las Vegas , Nevada. And plans to renovate the barrier were started under the Obama administration in 2009.

British PM's early arrival in Berlin sees her walk the carpet alone
Macron, the French President, is said to be "dead set" against granting Britain a long extension until March 31, 2020. Labour Party leader Jeremy Corbyn leaves his home in London , April 3, 2019.

Apparent wreckage from missing F-35 jet found: Japan gov't source
Japanese military officials told local media outlets that no problems with the jet were reported before it disappeared. Lockheed Martin said in a statement that it was standing by to support the Japanese Air Self Defense Force as needed.

Instant replay helps Virginia beat Texas Tech for national championship
However, guard Kyle Guy - the team's leading scorer - went on to score 6 points, giving the team a 1 point victory against Auburn. The game didn't appear to be headed for a classic as Texas Tech crawled out of the blocks and was down 17-7 after 10 minutes.

Fortnite has added this Apex Legends-inspired feature
But in the next big update to the game, you will no longer have to sit out the rest of the match, twiddling your thumbs. Recently there has been much discussion about how Fortnite can slow down the game to have more players in the endgame.

Pentagon says India debris expected to burn up in atmosphere
On Thursday, Bridenstine had reportedly promised to continue its cooperation with the Indian Space Research Organisation. Reddy said extensive simulations were conducted and there was no threat to the International Space Station (ISS).

One step closer to football season! Browns release preseason schedule
Because the Jets play the NFC East this year, they have two "preview" games on their preseason schedule - Giants and Eagles . The exact dates and times of the contests against the Raiders, Broncos, and Texans will be announced later.

Telecoms Race to Bring in 5G Phone Service
But the implications of the new technology have pitted Washington against Beijing in an increasingly bitter standoff. But South Korea's government says Korean companies launched their services for some customers before Verizon .