For someone who talked so much smack about sending everyone else off to prison… he’s likely to wind up there himself.
*update added*
Is America headed for a recession?
We now know who the other guy is, too. (Keep scrolling…)
First, the Mueller fishing expedition has come up empty, and now Avanetti has landed himself in serious legal trouble.
He was just charged by …
… the Southern District of New York.
What was that catchphrase he liked to use in his tweets? Oh, right.
#BASTA!
Hey, Michael, your crow is ready:
And there are some charges in LA besides what he’s got from New York!
Let’s start with the SDNY. With the prominent role they’ve played in the Trump resistance, the irony is just too delicious to NOT begin there.
But wait… there’s more!
**Update**
Here’s a press release that has come out since this story went live:
Lawyer Michael Avenatti Arrested on Federal Bank Fraud and Wire Fraud Charges
LOS ANGELES – Attorney Michael Avenatti was arrested today pursuant to a criminal complaint alleging he embezzled a client’s money in order to pay his own expenses and debts — as well as those of his coffee business and law firm — and also defrauded a bank by using phony tax returns to obtain millions of dollars in loans.
Avenatti, 48, of Century City, was arrested today pursuant to a two-count felony complaint charging him with wire fraud and bank fraud. He also was arrested pursuant to a separate federal case filed in New York.
According to an affidavit filed with the criminal complaint in this case, Avenatti negotiated a settlement which called for $1.6 million in settlement money to be paid on January 10, 2018, but then gave the client a bogus settlement agreement with a false payment date of March 10, 2018. The affidavit states that Avenatti misappropriated his client’s settlement money and used it to pay expenses for his coffee business, Global Baristas US LLC, which operated Tully’s Coffee stores in California and Washington state, as well as for his own expenses. When the fake March 2018 deadline passed and the client asked where the money was, Avenatti continued to conceal that the payment had already been received, court documents said.
Avenatti also allegedly defrauded a bank in Mississippi by submitting to the lender false tax returns in order to obtain three loans totaling $4.1 million for his law firm and coffee business in 2014. According to the affidavit, Avenatti obtained the loans by submitting fabricated individual income tax returns (Forms 1040) for 2011, 2012, and 2013, reporting substantial income even though he had never filed any such returns with the Internal Revenue Service. The phony returns stated that he earned $4,562,881 in adjusted gross income in 2011, $5,423,099 in 2012, and $4,082,803 in 2013, according to the affidavit. Avenatti allegedly also claimed he paid $1.6 million in estimated tax payments to the IRS in 2012 and paid $1.25 million in 2013. In reality, Avenatti never filed personal income tax returns for 2011, 2012 and 2013 and did not make any estimated tax payments in 2012 and 2013. Instead of the millions of dollars he claimed to have paid in taxes, Avenatti still owed the IRS $850,438 in unpaid personal income tax plus interest and penalties for the tax years 2009 and 2010, court papers state. The affidavit also alleges that, as part of his loan applications, Avenatti also submitted a fictitious partnership tax return for his law firm.
“A lawyer has a basic duty not to steal from his client,” said United States Attorney Nick Hanna. “Mr. Avenatti is facing serious criminal charges alleging he misappropriated client trust funds for his personal use and he defrauded a bank by submitting phony tax returns in order to obtain millions of dollars in loans.”
“Professionals, including attorneys, who create elaborate schemes that have no purpose other than to mislead others and defraud both their clients and federally insured financial institutions, run the very high risk of prosecution,” said Special Agent in Charge Ryan Korner of IRS-Criminal Investigation. “The criminal complaint unsealed today shows a pattern of selfish behavior that paints Mr. Avenatti as a lawyer who only represents his own self interests.”
If convicted on both charges, Avenatti will face a statutory maximum sentence of 50 years in federal prison. Avenetti’s initial court appearance will be today in New York. He is expected to face the criminal charges in the California case in United States District Court in Santa Ana at a later date.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being investigated by Internal Revenue Service-Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Julian L. André of the Major Frauds Section and Brett A. Sagel of the Santa Ana Branch Office.
Complaint
** end update**
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 US.
In the California case, Avenatti’s arrest was pursuant to a criminal complaint alleging he embezzled a client’s money in order to pay his own expenses and debts — as well as those of his coffee business and law firm — and also defrauded a bank by using phony tax returns to obtain millions of dollars in loans. A felony complaint charges him with wire and bank fraud.
Prosecutors in both states planned to release more details at news conferences later Monday.
…In the New York case, Avenatti was charged with conspiracy to transmit interstate communications with intent to extort, conspiracy to commit extortion, transmission of interstate communications with intent to extort and extortion.
The charges carry a potential penalty of 47 years in prison.
The complaint said Avenatti threatened to hold a news conference on the eve of Nike’s quarterly earnings call and the start of the NCAA tournament to announce allegations of misconduct by Nike employees.
Avenatti and a co-conspirator demanded to be paid a minimum of $15 to $25 million US and an additional $1.5 million US for an Avenatti client to remain silent, the complaint said.
Source: CBC News
That Co-conspirator is none other than…
BREAKING: The Wall Street Journal reports that the alleged co-conspirator with Michael Avenatti in the federal extortion case is celebrity attorney Mark Geragos.
Geragos is a CNN legal analyst and also represents Jussie Smollett.
— Ryan Saavedra (@RealSaavedra) March 25, 2019
CNN LEGAL analyst???
Wow, can THOSE guys ever pick a winner!
And Smollett will need a different lawyer, we suppose.
https://twitter.com/AlanMCole/status/1110233015286931457
Creepy Porn Lawyer is no stranger to publicity, but since Trump’s election, he was more accustomed to being the guy making accusations and threats of prison time than the one facing them.
For example:
Bif: If I were you, the last thing I would be doing is referencing other people getting out of federal prison. Because after you are indicted, you will likely be passing them on your way in. BTW, they don’t have silver spoons or gold toilets in the joint. Buckle up Buttercup. https://t.co/jnDq4weHZh
— Michael Avenatti (@MichaelAvenatti) October 9, 2018
You are an ignorant hack. You spew hate and conspiracy theories that have no basis in reality. You should be focused on keeping your son out of prison after the stunts and illegal acts he has engaged in relating to Mueller and me. He is in a lot of trouble.
— Michael Avenatti (@MichaelAvenatti) November 30, 2018
This thread seems particularly relevant:
https://twitter.com/BenedictDonald_/status/1071499091769741313
Wire fraud, you say?
March 6, 2018 – We filed the case on behalf of Stormy Daniels against Michael Cohen and Donald Trump
March 6, 2019 – Michael Cohen is due to report to federal prison to begin his 36 month prison term.
We are not done yet.
— Michael Avenatti (@MichaelAvenatti) December 12, 2018
Plot twist! You never mentioned landing YOURSELF in prison.
Guess who is REALLY enjoying this development?
How'd that work out for you buddy? #basta https://t.co/2RwNHrpzDK
— Donald Trump Jr. (@DonaldJTrumpJr) March 25, 2019
Hey @MichaelAvenatti – It looks like you'll be the one spending time behind bars after all. #basta https://t.co/7RioOcmNVp
— Donald Trump Jr. (@DonaldJTrumpJr) March 25, 2019
Karmas a bitch huh. #basta. https://t.co/U3Xjx1vmUk
— Donald Trump Jr. (@DonaldJTrumpJr) March 25, 2019
(And really, who could blame him?)
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