Adult-film actress Stephanie Clifford, also known as Stormy Daniels speaks US Federal Court with her lawyer Michael Avenatti (R) on April 16, 2018, in Lower Manhattan, New York.

Controversial lawyer Michael Avenatti was indicted Wednesday in separate cases charging him with stealing about $300,000 from his former porn star client Stormy Daniels, and with trying to extort athletic shoe giant Nike out of tens of millions of dollars by threatening to go public with claims the company was facilitating payments to the families of high school basketball stars.

While the Nike-related indictment was expected because it mirrors allegations in a criminal complaint executed against Avenatti in March, the claims related to Daniels were brand new.

Avenatti, who last year was mulling a run for the White House, is now charged in three separate federal indictments, including one pending in California related to alleged theft of client funds and other crimes, and faces the possibility of many years in prison if convicted.

According to one of the new indictments in New York, Avenatti allegedly forged Daniels' signature on a document that gave wire fund transfer information to her literary agent, which helped direct the money paid out for the book sales to a bank account controlled by Avenatt.

The lawyer had become widely known and notorious last year for his representation of Daniels, who was paid $140,000 on the eve of the 2016 presidential election by President Donald Trump's then-personal lawyer Michael Cohen to keep her quiet about her alleged sexual tryst with Trump a decade earlier. Trump denies having sex with her.

Prosecutors claim that Avenatti ripped off Daniels by taking payments for her book sales and paying her just half of what she was owed.

The indictment, which charges him with wire fraud and aggravated identity theft, accuses him of spending some of the money he allegedly swindled from Daniels on a lease payment for his Ferrari, travel expenses, dry cleaning and $56,000 in payroll at his law firm.

"Michael Avenatti abused and violated the core duty of an attorney – the duty to his client," said Manhattan U.S. Attorney Geoffrey S. Berman.

"As alleged, he used his position of trust to steal an advance on the client's book deal. As alleged, he blatantly lied to and stole from his client to maintain his extravagant lifestyle, including to pay for, among other things, a monthly car payment on a Ferrari. Far from zealously representing his client, Avenatti, as alleged, instead engaged in outright deception and theft, victimizing rather than advocating for his client." </s> Michael Avenatti's legal troubles escalated on Wednesday as federal prosecutors announced new criminal charges accusing the lawyer and prominent critic of U.S. President Donald Trump of stealing from porn star Stormy Daniels and extorting Nike Inc.

Michael Avenatti's legal troubles escalated on Wednesday as federal prosecutors announced new criminal charges accusing the lawyer and prominent critic of U.S. President Donald Trump of stealing from porn star Stormy Daniels and extorting Nike Inc.

Prosecutors accused Avenatti, 48, of stealing about $300,000 from Daniels, about half of which has not been repaid, after helping his former client secure a book contract.

They also said he has been indicted on previously announced charges that he tried to blackmail Nike out of more than $20 million by threatening to expose what he called the athletic wear company's improper payments to recruits for college basketball teams it sponsored.

The charges were announced by U.S. Attorney Geoffrey Berman in Manhattan.

Avenatti also faces dozens of charges in California, where prosecutors on April 11 accused him of stealing millions of dollars from clients to pay for personal and business expenses, and lying to the Internal Revenue Service and a Mississippi bank about his finances.

If convicted on all charges, Avenatti could face several hundred years in prison.

Avenatti has maintained his innocence, and said the earlier prosecutions were a means to punish him for representing Daniels and being a Trump critic.

"I look forward to a jury hearing all of the evidence and passing judgment on my conduct," he wrote on Twitter after Wednesday's charges were announced.

"At no time was any money misappropriated or mishandled," he added. "I will be fully exonerated once the relevant emails, contracts, text messages, and documents are presented."

Lawyers for Avenatti did not immediately respond to requests for comment.

Avenatti represented Daniels in lawsuits arising from what she called her 2006 sexual relationship with Trump, and a $130,000 hush money payment from former Trump lawyer Michael Cohen shortly before the 2016 presidential election.

According to court papers, Avenatti diverted a significant portion of Daniels' $800,000 book advance after sending her literary agent an unauthorized letter purporting to contain her signature, and directing that money be sent to his bank account.

Prosecutors said Avenatti spent some diverted money on monthly lease payments for a Ferrari, hotels, airfare, restaurant meals, car service and business expenses.

When Daniels asked why she had not received a $148,750 installment payment, Avenatti lied by telling her he had yet to receive it from the publisher, according to court papers.

Prosecutors said he later paid Daniels with money obtained from another source, so she would not realize it had been diverted.

Daniels, whose real name is Stephanie Clifford, is identified in court papers as "Victim-1." A person familiar with the matter who was not authorized to speak publicly confirmed her identity.

The charges related to Daniels include one count of wire fraud and one count of aggravated identity theft, and carry a maximum combined penalty of 22 years in prison.

Trump has denied having had sex with Daniels. Cohen is two weeks into his three-year prison term after pleading guilty to campaign finance violations, including the hush money payment.

Avenatti, who flirted last year with a 2020 White House run, became a familiar face on cable news channels as his stature grew, but has had a lower profile since being indicted. </s> US Lawyer Michael Avenatti, who rose to prominence for representing porn star Stormy Daniels in her lawsuit against President Trump, has himself been indicted on two separate charges of extortion involving the sports clothing brand Nike and defrauding his former client — Daniels. While the first indictment was expected because it mirrors allegations in a criminal complaint executed against the lawyer earlier in March, the charges related to Daniels are brand new.

These are the latest charges filed against the lawyer, who previously faced other charges in California and New York federal courts, according to The Hill.

The lawyer himself denies all allegations saying he did not misappropriate funds from Stormy Daniels, saying in his Twitter account that he expects to be totally exonerated once all evidence is present at the court.

"No monies relating to Ms Daniels were ever misappropriated or mishandled. She received millions of dollars in legal services and we spent huge sums in expenses. She directly paid only $100.00 for all that she received," Avenatti tweeted Wednesday.

The documents say he "repeatedly lied… including by stating that he was working on getting the fees from [their] publisher, when, in truth and in fact, Avenatti had already received the fees and spent them on his own personal and professional expenses."

The expenses in question included "payments to individuals with whom Avenatti had personal relationships, a luxury car payment, hotel stays, airfare, meals, car services, and dry cleaning." He also used part of the money to make a "monthly lease payment of approximately $3,900 for a Ferrari automobile," the papers say.

In total, Avenatti allegedly stole some $300,000 of Daniels' publishing money and still hasn't paid it all back. Upon contacting her publisher, to ask about payments, Daniels discovered that the money had already been paid.

Daniels — who is not named in person in the documents — is said to have "never authorized nor signed the False Wire Instructions and, in fact, was not even aware of any False Wire Instructions."

Earlier this year, Avenatti said he might run in 2020 as a Democratic Presidential candidate. However, the end to his cooperation with Daniels and charges in multiple courts have damaged the lawyer's public image in recent months, a report by The Hill says.

Earlier last year, Stormy Daniels used Avenatti's legal services when she sued President Trump, challenging a non-disclosure agreement regarding their affair back in 2006. </s> Federal prosecutors in New York and California announced charges against Michael Avenatti on Monday in separate cases targeting the former personal attorney for adult film actress Stormy Daniels.

Avenatti, who was arrested in New York City on Monday morning, stands accused of attempting to extort Nike for $20 million and faces additional charges of bank- and tax-fraud.

Charges in the separate cases were announced almost simultaneously. In a press conference on Monday, U.S. Attorney for the Central District of California Nick Hanna said investigators in California and New York coordinated the release of charges and Avenatti’s arrest, though the cases were pursued separately.

Prosecutors in New York wrote in a criminal complaint filed Sunday that Avenatti and an unnamed co-conspirator threatened to release damaging information about Nike if the sportswear giant refused to make multi-million dollar payments to them and an additional $1.5 million payment to an individual Avenatti claimed to represent.

In a phone call with lawyers for Nike last week, Avenatti and the unnamed co-conspirator allegedly said if those demands were not met, "I'll go take $10 billion dollars off your client's market cap. I'm not f***ing around," according to the criminal complaint.

ABC News has learned that the alleged unnamed co-conspirator referenced in the New York case against Avenatti is celebrity attorney Mark Geragos. He has not been charged or arrested, and he did not reply to a request for comment. The U.S. Attorney's Office, citing its policy of not naming people who are not charged, declined to comment.

Avenatti was not immediately available for a comment.

"At its core, this was an old-fashioned shake-down," U.S. Attorney for the Southern District of New York Geoffrey Berman said at a press conference on Monday.

Nike said in a statement that the company “will not be extorted or hide information that is relevant to a government investigation," adding that "when Mr. Avenatti attempted to extort Nike over this matter, Nike with the assistance of outside counsel at Boies Schiller Flexner, aided the investigation."

Earlier Monday, Avenatti tweeted plans to hold a press conference "to disclose a major high school/college basketball scandal perpetrated by @Nike."

Federal investigators told ABC News that Avenatti was taken into custody approximately 15 minutes later.

In addition to the extortion charges in New York, prosecutors in California filed an affidavit over the weekend accusing Avenatti of stealing funds from a client to pay off his own expenses and "defrauded a bank in Mississippi by submitting to the lender false tax returns in order to obtain three loans totaling $4.1 million."

"[Avenatti] violated the principals of honesty and fairness," Hanna said Monday.

Avenatti, 48, gained prominence for representing Daniels in a defamation lawsuit against President Donald Trump. In December, a federal judge in California ordered Daniels to pay Trump just under $300,000 in legal fees throwing out her defamation suit in October.

Earlier this year, Daniels announced that Avenatti no longer represented her. In a statement from Daniels and her current attorney, Clark Brewster, on Monday, the adult film star said she was "saddened but not shocked by news reports that he has been criminally charged today."

"I made the decision more than a month ago to terminate Michael's services after discovering that he had dealt with me extremely dishonestly and there will be more announcements to come," Daniels said. "I ask that the media respect my decision to withhold further public comment regarding Mr. Avenatti at this time." </s> NEW YORK (Reuters) - Michael Avenatti's legal troubles escalated on Wednesday as federal prosecutors announced new indictments accusing the lawyer and prominent critic of U.S. President Donald Trump of ripping off porn star Stormy Daniels and extorting Nike Inc.

Prosecutors in Manhattan accused Avenatti, 48, of stealing about $300,000 from Daniels, the client who made him famous, to fund an extravagant lifestyle including a Ferrari automobile, after helping her secure a book contract.

The Nike indictment concerns charges announced in March that Avenatti tried to extort more than $20 million from the athletic wear company by threatening to expose what he called its improper payments to recruits for college basketball teams it sponsored.

Avenatti also faces dozens of charges in southern California, where prosecutors on April 11 accused him of stealing millions of dollars from clients to pay for personal and business expenses, and lying to the Internal Revenue Service and a Mississippi bank about his finances.

If convicted on all charges, Avenatti could face more than 400 years in prison, but would likely face a lesser punishment.

Nike has denied wrongdoing, and assisted prosecutors prior to Avenatti's arrest.

Avenatti has maintained his innocence and said the earlier prosecutions were to punish him for representing Daniels and criticizing Trump.

Daniels, whose real name is Stephanie Clifford, received hush money to keep quiet about an affair she claimed to have had with Trump in 2006. The president has denied having had sex with Daniels.

"I look forward to a jury hearing all of the evidence and passing judgment on my conduct," Avenatti wrote on Twitter after the indictments were announced.

"At no time was any money misappropriated or mishandled. I will be fully exonerated once the relevant emails, contracts, text messages, and documents are presented."

He later said in an email that Daniels had received "millions of dollars worth of legal services."

Lawyers for Avenatti did not immediately respond to requests for comment. Daniels could not immediately be reached.

Avenatti represented Daniels in lawsuits arising from a $130,000 hush money payment from former Trump lawyer Michael Cohen shortly before the 2016 presidential election.

Prosecutors said Avenatti diverted two $148,750 installment payments from Daniels' $800,000 book advance, after sending her literary agent a letter that forged her signature, and directed that money be sent to his bank account.

Daniels is identified in court papers as "Victim-1." A person familiar with the matter who was not authorized to speak publicly confirmed her identity.

According to the papers, Avenatti spent some of the diverted funds on lease payments for the Ferrari, hotels, airfare, restaurant meals, car service and business expenses.

Prosecutors said Avenatti eventually paid $148,750 to Daniels after obtaining the money from another source, but lied when she asked where the second payment was by telling her the publisher "owes me a payment" and that he was "on it."

Daniels has not received that payment, prosecutors said. She dropped Avenatti as her lawyer earlier this year.

"Michael Avenatti abused and violated the core duty of an attorney--the duty to his client," U.S. Attorney Geoffrey Berman, who announced Wednesday's indictments, said in a statement.

"Far from zealously representing his client, Avenatti, as alleged, instead engaged in outright deception and theft, victimizing rather than advocating for his client," Berman added.

The charges related to Daniels include one count of wire fraud and one count of aggravated identity theft, and carry a maximum combined penalty of 22 years in prison.

Cohen is two weeks into his three-year prison term after pleading guilty to campaign finance violations, including the hush money payment.

Avenatti became a familiar face on cable news channels as his stature grew, and flirted last year with a 2020 White House run. He has had a lower profile since being charged. </s> On Wednesday, a high profile lawyer was accused of stealing from his client. The AP reports that federal charges against Michael Avenatti now include allegations that he defrauded his former client, porn star Stormy Daniels.

In a press release, the Department of Justice said that Avenatti was indicted "on fraud and aggravated identity theft charges." Prosecutors say that Avenatti took money that one of his clients was supposed to receive has part of a book deal. The AP reports that the client in question was Daniels. He was also indicted on extortion charges related to allegations that he tried "to extract more than $20 million in payments from Nike, Inc," per the Justice Department. Avenatti has denied the allegations against him.

"I look forward to a jury hearing all of the evidence and passing judgment on my conduct," Avenatti says in a statement to Bustle. "At no time was any money misappropriated or mishandled. I will be fully exonerated once the relevant emails, contracts, text messages, and documents are presented. I was entitled to any monies retained relating to a book per my agreement with the client. It was part of my agreement for representation and compensation."

U.S. Attorney Geoffrey S. Berman said in a statement that Avenatti "abused and violated the core duty of an attorney — the duty to his client."

Prosecutors say that, in total, Avenatti diverted about $300,000 of Daniels' book advance to himself. In doing say, Berman said, " he blatantly lied to and stole from his client to maintain his extravagant lifestyle, including to pay for, among other things, a monthly car payment on a Ferrari."

More to come... </s> Michael Avenatti, the flamboyant lawyer who represented porn star Stormy Daniels in her legal battle with US President Donald Trump, has been indicted on charges of theft, fraud and tax evasion, authorities said Thursday.

Prosecutors say Avenatti stole millions of dollars from his own clients and kept millions of dollars in employment taxes that his coffee company should have paid to the Internal Revenue Service.

The 36-count indictment by a federal grand jury exposes Avenatti to up to 333 years behind bars if convicted, Nick Hanna, US Attorney for the Central District of California, said.

"In the event of his conviction, we seek to have proceeds of Mr. Avenatti's fraudulent conduct forfeited to the government. Authorities seized a $5 million jet that Mr. Avenatti co-owned, a purchase he made from money allegedly stolen from a client," Hanna told a news briefing.

The charges he faces include tax fraud, bank fraud and bankruptcy fraud.

"The financial investigation conducted by the IRS details a man who allegedly failed to meet his obligations to the government, stole from his clients, and used his ill-gotten gains to support his racing team, the ownership of Tully´s coffee shops, and a private jet," said IRS Acting Special Agent in Charge Ryan Korner.

The wire fraud charges are related to the more than $12 million he received for his clients from lawsuit settlements and other negotiations. The indictment alleges that Avenatti stole millions of dollars from clients he represented in four matters.

"In each of the four cases of embezzlement alleged in the indictment, Avenatti received money on behalf of clients into client trust accounts, misappropriated the money, and lied to the clients about receiving the money or, in one case, claimed that the money had already been sent to the client," a Justice Department statement explained.

Avenatti, who has been released on a $300,000 bond, is to be arraigned April 29 in United States District Court in Santa Ana, California.

"I intend to fully fight all charges and plead NOT GUILTY," the attorney said on Twitter. "I look forward to the entire truth being known as opposed to a one-sided version meant to sideline me."

Avenatti faces charges in a separate case in New York involving the sports apparel giant Nike.

According to that complaint, the celebrity attorney devised a scheme to extort millions of dollars from Nike by threatening to damage the company's reputation right before its quarterly earnings report and the start of the NCAA men's basketball tournament.

California-born Avenatti, 48, at one point entertained the possibility of running for president. He rose to fame after representing Daniels in her legal battles with Trump over hush money she received for an affair she allegedly had with Trump in 2006.

In addition to Daniels, Avenatti's clients have included singer R Kelly, and Julie Swetnick, who said she witnessed sexually abusive behavior by Brett Kavanaugh, the US Supreme Court justice whose volatile confirmation process was marked by multiple accusations of sexual assault when he was in high school and college. </s> Stormy Daniel's former attorney Michael Avenatti admitted he's feeling 'nervous and scared' in his first interview since being charged with federal counts of fraud and extortion.

Avenatti was formerly accused of trying to extort $25 million from Nike on Monday, after the sportswear brand claim the New York-based lawyer repeatedly threatened to release unfavorable information about the company unless they paid for his silence.

In a separate lawsuit, prosecutors in California charged Avenatti with wire and bank fraud for allegedly lying to one of his clients about the amount of a settlement claim, and for using falsified tax returns to obtain bank loans.

If convicted of all charges, Avenatti potentially faces the rest of his life behind bars.

'Of course I'm nervous,' Avenatti told CBS News on Tuesday regarding the seriousness of the allegations. 'I'm nervous, I'm concerned, I'm scared.'

'I feel terrible for my family, I feel bad by my friends,' he continued. 'Most are sticking by me because they know what I'm about. I feel very fortunate in that regard,'

Avenatti was released on a $300,000 bond on Monday and is set to re-appear in court in April, in both New York and California.

'Sure, I'm nervous, I'm scared. I'm all of those things. And if I wasn't, it wouldn't make a lot of sense,' he concluded in a short snippet of the interview set to air on CBS Evening News tonight.

Avenatti's tone marked a stark contrast to the confident one displayed in a press conference in New York on Monday evening, where he told reporters he would be 'fully exonerated'.

'As all of you know for the entirety of my career I have fought against the powerful. Powerful people and powerful corporations,' he told the press. 'I will never stop fighting that good fight.

'I am highly confident that when all of the evidence is laid bare in connection with these cases, when it is all known, when due process occurs that I will be fully exonerated and justice will be done.'

Avenatti reaffirmed his innocence in a tweet, saying he 'never attempted to extort Nike', and the public would soon learn the truth of their 'crime and cover-up'.

His social media expose continued on Tuesday morning, where, in a series of posts, Avenatti named both DeAndre Ayton and Bol Bol as examples of NCAA players who've received improper funding from Nike.

Ayton played a single season at the University of Arizona before becoming the first pick in the 2018 draft while Bol Bol is the son of 7ft 7in NBA great Manute Bol, who passed away back in 2010.

Avenatti claimed Bol Bol 'and his handlers' took 'large sums' to play for The University of Oregon, a Nike sponsored school. He also implicated Ayton, writing: 'Ask DeAndre Ayton and Nike about the cash payments to his mother and others.'

Avenatti claims he has proof that Nike was paying players illegally to sign with certain schools when they were in high school, and says he planned to expose the scheme in a press conference.

But Prosecutors say that rather than try to make the alleged scheme public knowledge, he has been threatening Nike and demanding up to cash to stay quiet.

The charges against Avenatti were announced shortly after he tweeted: 'Tmrw at 11 am ET, we will be holding a press conference to disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered. This criminal conduct reaches the highest levels of Nike and involves some of the biggest names in college basketball.'

According to his indictment, Avenatti's interest in the case began with the coach of an amateur youth travel basketball team who he represents.

The team had recently lost its $72,000 sponsorship deal from Nike.

Last week, Avenatti contacted Nike claiming to not only know about the 'scam' but insisting the company should pay his client $1.5 million to stay quiet and give him an additional $15 million to $25 million to 'investigate' it.

'I'll go take ten billion dollars off your client's market cap,' Avenatti allegedly said during the call.

He later noted: 'I'm not f***ing around.'

In a statement on Monday, Nike said it 'has been cooperating with the government's investigation into NCAA basketball for over a year...[and] firmly believes in ethical and fair play, both in business and sports, and will continue to assist the prosecutors.'

Avenatti gained public notoriety when he represented former adult film star Stormy Daniels in a lawsuit against President Trump last year.

'Knowing what I know about Michael Avenatti, I am saddened but not shocked by news reports that he has been criminally charged today,' ex-client Daniels tweeted on Monday.

'I made the decision more than a month ago to terminate Michael's services after discovering that he had dealt with me extremely dishonestly and there will be more announcements to come.'

Avenatti faces almost 100 years in prison if convicted in both cases, as well as possible disbarment as a lawyer. </s> Federal prosecutors in California leveled fresh charges against Michael Avenatti on Thursday, marking yet another legal blow for the controversial celebrity attorney known for representing adult film actress Stormy Daniels.

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In a 61-page federal indictment detailing 36 counts, prosecutors with the U.S. attorney’s office in the Central District of California described Avenatti's alleged decade-long scheme to embezzle and hide millions of dollars from clients. If found guilty, the charges could land him more than 300 years in federal prison.

“The money was used to fuel a lavish lifestyle that had no limits including making mortgage payments on a multi-million dollar home in Laguna Beach," Acting Special Agent in Charge of IRS Criminal Investigation Ryan Korner said during a press conference Thursday.

Korner said federal agents seized Avenatti’s $5 million private jet this week.

A vocal critic of President Donald Trump whose presence on cable television last year made him a national figure, Avenatti now finds himself buried in legal travails on both coasts.

ABC News

Prosecutors in the Central District targeted Avenatti with wire and bank fraud charges last month in a scheme that included allegations he stole funds from a client to pay off his own expenses. In New York, Avenatti faces two counts of extortion for his alleged role in what prosecutors called “an old-fashioned shakedown” of Nike.

Charges in the separate cases were announced almost simultaneously and authorities took Avenatti into custody in New York City later that day. He was ordered released on $300,000 bond later that day.

In the new indictment filed Thursday, Avenatti is accused of stealing millions of dollars from clients who had been paid settlements. The money, which was supposed to flow through Avenatti to his clients when the settlements were paid, stayed with Avenatti, according to prosecutors.

“Mr. Avenatti received money on behalf of clients into client trust accounts, misappropriated the money and lied to the clients about receiving the money,” U.S. Attorney Nick Hanna explained .

One of the clients who was allegedly never paid was Geoffrey Johnson, a paraplegic man on disability. Johnson won a $4 million dollar settlement against Los Angeles County in 2015. Prosecutors say that money was paid to Avenatti but was never given to Johnson.

Avenatti allegedly told Johnson that the money was not yet available and that he was “advancing” Johnson money to pay rent. Yet the entire time, prosecutors say, Avenatti had the $4 million and was using it for personal and business expenses.

“Mr. Johnson is the victim of an appalling fraud perpetrated by the one person who owned him loyalty and honest most of all: his own lawyer,” Johnson’s attorney Josh Robbins writes to ABC News. “His actions have left Mr. Johnson destitute.”

After prosecutors announced plans for Thursday's press conference, Avenatti tweeted that he remains "confident that justice will be done once ALL of the facts are known."

For 20 years, I have represented Davids vs. Goliaths and relied on due process and our system of justice. Along the way, I have made many powerful enemies. I am entitled to a FULL presumption of innocence and am confident that justice will be done once ALL of the facts are known. — Michael Avenatti (@MichaelAvenatti) April 11, 2019

Avenatti gained prominence last year when he began representing Daniels in a defamation lawsuit against Trump. A federal judge in California later threw out the suit and ordered Daniels to reimburse Trump for legal fees.

A court appearance is scheduled for April 25 in New York.
Lawyer Michael Avenatti is indicted in separate cases charging him with allegedly stealing about $300,000 from Stormy Daniels and blackmailing Nike.