Adult Star Stormy Daniels’ ex-lawyer Michael Avenatti accused of fraud
Last Modified: Mar 23, 2022
Michael Avenatti, a US lawyer who had represented adult star, Stormy Daniels, in her lawsuit against President Trump has been arrested for fraud charges.
What are the charges?
The charges include threatening to use his profile to inflict reputational harm on Nike and also being accused of embezzlement.
According to federal prosecutors in New York, in earlier March Michael Avenatti had met a lawyer for Nike. During the meeting, Avenatti allegedly threatened to release damaging information about Nike unless it paid him and an unnamed co-conspirator between $15 million and $25 million.
In additionally had demanded $1.5 million for the unnamed co-conspirator. Using his profile, Avenatti is accused of having threatened to take $10 billion off Nike's market value.
On the other charge, he has been charged with embezzling money from a client and defrauding a bank. Prosecutors said that Avenatti had negotiated a $1.6m settlement for a client but only gave them a false payment date and a "bogus" agreement.
He then collected a $130,000 advance, a secret settlement, and used the rest to support his "lavish lifestyle".
Via Instagram, Michael Avenatti had announced that he would be holding a press conference to disclose a major high school/college basketball scandal perpetrated by Nike.
Soon after the announcement, he was arrested in New York on Monday. Nike also released a statement saying it would "not be extorted or hide information that is relevant to a government investigation" and that they had immediately reported the matter to federal prosecutors.
Is Stormy Daniels involved?
Michael Avenatti represented adult star Stormy Daniels who is suing President Trump to get out of a non-disclosure agreement signed before the 2016 presidential election. The agreement prevents Daniels from talking about the affair she had with Donald Trump in 2006.
Michael Avenatti is set to appear in court in California on 1 April and on 5 April in New York.