Michael Avenatti: BUSTED!

Michael Avenatti lost his effort to block the eviction of his law practice from its Newport Beach offices, the Los Angeles Times reports. At a Friday hearing at Orange County Superior Court, Judge Robert J. Moss reportedly affirmed his October decision to evict law firm Eagan Avenatti after it failed to pay $213,254 in rent over four months.

In an email, Avenatti told the Times the decision did “not matter” as his “former firm… was already in the process of moving. A non-event.”

Michael Avenatti sued Donald Trump for defaming Stormy Daniels against her wishes, Daniels told The Daily Beast in a statement on Wednesday.

Avenatti also started a new fundraising site to raise money for her legal defense fund without telling her, Daniels said. She said she is not sure whether or not she will keep Avenatti on as her lawyer.

Here is her full statement, provided to The Daily Beast:

“For months I’ve asked Michael Avenatti to give me accounting information about the fund my supporters so generously donated to for my safety and legal defense. He has repeatedly ignored those requests. Days ago I demanded again, repeatedly, that he tell me how the money was being spent and how much was left. Instead of answering me, without my permission or even my knowledge Michael launched another crowdfunding campaign to raise money on my behalf. I learned about it on Twitter.

“I haven’t decided yet what to do about legal representation moving forward. Michael has been a great advocate in many ways. I’m tremendously grateful to him for aggressively representing me in my fight to regain my voice. But in other ways Michael has not treated me with the respect and deference an attorney should show to a client. He has spoken on my behalf without my approval. He filed a defamation case against Donald Trump against my wishes. He repeatedly refused to tell me how my legal defense fund was being spent. Now he has launched a new crowdfunding campaign using my face and name without my permission and attributing words to me that I never wrote or said. I’m deeply grateful to my supporters and they deserve to know their money is being spent responsibly. I don’t want to hurt Michael, but it’s time to set the record straight. The truth has always been my greatest ally.

“My goal is the same as it has always been—to stand up for myself and take back my voice after being bullied and intimidated by President Trump and his minions. One way or another I’m going to continue in that fight, and I want everyone who has stood by me to know how profoundly grateful I am for their support.”

Federal prosecutors in Manhattan and Los Angeles charged attorney Michael Avenatti nearly simultaneously in two criminal cases Monday, unsealing complaints that alleged he attempted to extort more than $20 million from Nike and that he committed wire and bank fraud.

[snip]

According to the complaint, Avenatti met March 19 with attorneys for Nike and threatened to release what he said were allegations of misconduct by employees on the eve of both its quarterly earnings call and the start of the NCAA tournament.

Avenatti would disclose the allegations at a press conference, he said, according to the complaint, unless Nike made millions in payments to him and an unnamed co-conspirator by hiring them to conduct an "internal investigation," for which he later requested between $15 million and $20 million. Avenatti also allegedly demanded that Nike pay $1.5 million to an individual he claimed to represent.

On February 19, we informed Stormy Daniels in writing that we were terminating our legal representation of her for various reasons that we cannot disclose publicly due to the attorney-client privilege. This was not a decision we made lightly and it came only after lengthy discussion, thought and deliberation, as well as consultation with other professionals. We wish Stormy all the best.

According to prosecutors, 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 criminal complaint alleges 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 inquired about the funds, Avenatti continued to conceal that the payment had already been received, court documents alleged.

Prosecutors say 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.