Alan Dershowitz reacts to Michael Avenatti’s arrest (3/13)

Michael Avenatti, lawyer who challenged President Trump, charged with extorting Nike, embezzlement and fraudBart Jansen, Kevin Johnson and Kevin McCoy, USA TODAYPublished 1:29 p.m. ET March 25, 2019 | Updated 5:25 p.m. ET March 25, 2019

A U.S. Attorney in Los Angeles says lawyer Michael Avenatti, a critic of President Donald Trump, could face up to 50 years in prison if convicted on wire and bank fraud charges. (March 25) AP, AP

NEW YORK – Federal prosecutors in two states revealed criminal charges Monday against Michael Avenatti, the high-profile lawyer who battled President Donald Trump, accusing him of scheming to extort shoemaker Nike, embezzling money and defrauding a bank.

Avenatti was arrested Monday afternoon in New York outside the office of one of Nike’s lawyers.

In the Nike case, federal prosecutors in New York charged Avenatti with four counts of extortion and conspiracy for allegedly threatening to reveal what he claimed was evidence that Nike made improper payments to high school basketball players unless the company paid $1.5 million to one of his clients and $15 million to $25 million for him and an associate to conduct an investigation of Nike.

“Avenatti’s conduct had nothing to do with valid advocacy on behalf of a client or any other kind of legitimate legal work. Instead, Avenatti used illegal and extortionate threats for the purpose of obtaining payments for himself,” said Geoffrey Berman, U.S. attorney for the Southern District of New York. “A suit and a tie doesn’t mask what at its core was an old-fashioned shakedown.”

Prosecutors described the effort, which played out largely over the past week, as a “multimillion-dollar extortion scheme.” The investigation is continuing, and prosecutors said they have not decided whether to charge Avenatti’s associate, who two people familiar with the matter said is Mark Geragos, a celebrity lawyer who represented “Empire” star Jussie Smollett. The people were not authorized to speak publicly.

Minutes before he was arrested, Avenatti posted on Twitter that he was about to disclose a “major high school/college basketball scandal.”

Berman said the tweet “was designed for an audience of one. It was Michael Avenatti’s shot across Nike’s bow.”

Nike issued a statement Monday that said the company has cooperated with the government’s NCAA investigation for more than a year and immediately reported Avenatti to prosecutors. The FBI investigation into a corruption scheme involving men’s college basketball led to charges against Adidas representatives and others in the fall of 2017.

“Nike will not be extorted or hide information that is relevant to a government investigation,” the company said.

Federal prosecutors in Los Angeles separately revealed Monday that they charged Avenatti with embezzling a client’s money and defrauding a bank by using a fake tax return to obtain loans, a scheme they said had been going on for considerably longer.

Avenatti is charged with embezzling more than $1 million from an unnamed client that he used to pay his own expenses and debts, as well as those of his coffee business and law firm, according  to the 197-page complaint. He is accused of defrauding a bank by using phony tax returns to obtain millions of dollars in loans.

Prosecutors outlined an elaborate scheme in which Avenatti sought three loans from a Mississippi bank in 2014 by allegedly inflating his income by $5.2 million and falsely reporting that he paid $2.8 million in federal taxes to the IRS during the two preceding years. At the time he declared the tax payments to the bank, prosecutors asserted, Avenatti had made no tax payments for those years and owed the IRS about $850,000.

Avenatti is the Los Angeles lawyer who represented pornographic actress Stormy Daniels in a lawsuit over what she said was a bid by Trump during his presidential campaign to prevent her from speaking about having sex with him. Federal prosecutors in New York determined that the payment had been an illegal contribution from Trump’s lawyer, Michael Cohen, to the president’s campaign, creating one of a handful of criminal investigations centered around Trump and his associates.

As his profile rose, Avenatti publicly flirted with the idea of running for president.

Daniels, whose real name is Stephanie Clifford, said she terminated Avenatti’s services more than a month ago after he dealt with her “extremely dishonestly.”


Stormy [email protected]

My statement regarding my former attorney Mr. Avenatti..

10.5K2:00 PM – Mar 25, 2019

Prosecutors echoed that contention in the charges they filed in Los Angeles. They alleged that Avenatti negotiated a $1.6 million settlement for an unnamed client, then provided the client a fake settlement agreement that said the money would not come until later, then used it to pay expenses  for his coffee business, Global Baristas US, which operated Tully’s Coffee stores in California and Washington state, as well as for his own expenses.

Avenatti allegedly defrauded a bank in Mississippi by supplying it false tax returns to obtain three loans totaling $4.1 million for his law firm and coffee business in 2014.

“A lawyer has a basic duty not to steal from his client,” Los Angeles U.S. Attorney Nick Hanna said. “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.”

IRS special agent Ryan Korner characterized Avenatti’s alleged actions as “elaborate schemes that have no purpose other than to mislead others and defraud both their clients and federally insured financial institutions.”

“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,” Korner said.

If convicted on the charges in Los Angeles, Avenatti could face up to 50 years in federal prison, though few defendants receive the maximum punishment. He faces the threat of an additional 47 years in the New York case.

Avenatti did not immediately respond to a request for comment.

After Avenetti’s court appearance on the New York charges, he will be brought to a federal court in Santa Ana to face the California charges.

In the Nike case, prosecutors charged that Avenatti said he represented an unnamed Amateur Athletic Union basketball coach who had evidence the shoemaker made payments to families of several high-school basketball players, according to the court documents. Prosecutors declined to say whether the coach  cooperated with investigators.

Avenatti allegedly threatened to reveal that information publicly, which he said would hurt Nike’s market value. The threat came before a Nike quarterly earnings call March 21, according to the documents.

“You guys know enough know now to know you’ve got a serious problem. And it’s worth more in exposure to me to just blow the lid on this thing,” Avenatti told Nike, according to a transcript in the court records of the profanity-laced call March 20. “A few million dollars doesn’t move the needle for me.”

Avenatti had scheduled a meeting with Nike’s lawyers Monday to give them a final opportunity to meet his demands, prosecutors said. He was arrested outside the lawyer’s office.

Jansen and Johnson reported from Washington. Contributing: A.J. Perez and Aamer Madhani


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Written by top40

Hello Again and Thanks for reading it is I David "IT40" Ellenberger with an update on the status of my lawsuit against Alphabet inc case # 4:20-CV-04877-SBA  and the website and life in general. By now if you regularly visit you may have read this section "author info" or Bio. So I am adding to it with more bio and more info. I originally liked the idea of voting on the internet 20-25 years ago when I first got online with WebTV (does anyone remember that?).

The technology at that time was not advanced enough to easily be able to vote online or watch videos or much else for that matter but I was hooked and look at what we can do now with videos, IOT, and everything else, but I digress. I started about 5 years ago and the user base has been going up steadily ever since. I wanted to be another Facebook, with music and voting and that is all coming together slowly but surely. BTW if you want to help or have any interest please feel free to email me anytime.

Now in my previous Author Info or bio page I made it clear or at least I thought I made it clear, I am personally suing Alphabet inc. in Federal Court for Fraud. I have evidence to prove they are not counting all the pageviews, among other things and defrauding myself and probably millions of other website owners and content creators out of Billions of dollars. So if I wasn't clear or you didn't know it's true I am suing Alphabet inc. in Federal Court for Fraud the case was recently moved from my state of Kentucky to N. California to make it easier for Alphabet inc. to steam roll me or so they think. Needless to say if you are interested and I hope you are you can look the case up online under my name "David Russell Ellenberger" or the case # which is 4:20-CV-04877-SBA.

Now, I want to make it clear to you and everyone that I am not suing Alphabet inc. aka Google for fraud just because I want a million dollars for nothing. I am suing Google for fraud because I think they are committing  a serious crime with worldwide and societal ramifications, it is a  very serious problem.  I am suing Google for fraud because to put it simply the analytics numbers don't add up at least not in my favor or yours, there is something very fishy going on with the Google analytics numbers. Of course Google has an excuse for every one of them but I have reasons and the actual numbers and they don't add up, more about the numbers later.

Companies like Google are making Billions of dollars a year in profits telling us data is the most valuable thing and misleading us and misdirecting the media and the world every chance they can.  Now data is valuable and they are making billions in profits seemingly like magic but there is no magic to it just corruption and lies. One thing Alphabet inc. aka Google is really making their money from and that is advertising dollars and they are putting all of this advertising on the websites other people have created.

Websites that I have created and  websites you have created and websites millions of others around the world have created websites or content. For example Just writing a text is creating content and that's where Google puts the billions in advertising they receive and keeping most of it for themselves. Yes content others have created and yet somehow they are keeping almost all of these billions for themselves and not distributing it equitably to the real workers the true content creators who actually deserve the advertising monies. Google has made it's billions on the backs of you and me. Think about that for a minute, how can they continue to justify this? They Can't, it has to change.

For example if I were to prevail in the current lawsuit just half of the monies or $20 billion put into a basic account and compounded at 5% annually we could realistically employ over 80,000 people at $24,000 a year, indefinitely.  Sounds unbelievable but its true and if we only employed 40,000 people we could pay them approx. $48,000 a year indefinitely. Its all true. Its simply a matter of having the money and the will to do it. Now is 40,000 people a lot well yes it would be a lot of employees but with more money simply put into a trust account we could employ more people

I David Russell Ellenberger through my website am suing Google to try to help right a wrong. A wrong committed by Google that has simply gotten out of hand. Most people may think they can't do anything about it. Nothing can stop Google, the politicians don't care they use all of Googles data to further their own campaigns and line their own pockets while the rest of us keep on creating the content for Google, nothing can be done, this however is not the case, we can do something.

The politicians and Alphabet inc. aka Google have done nothing to help society at large other than organize it so they can keep more money in secret and pay off all their buddies with their fraudulently obtained money. It's gotten so bad that the politicians and others in control won't even talk about it, they ignore it and hope it goes away, they won't even try to stop google because it is helping them too much and maybe they are scared of Google or who knows what they may be thinking. But it looks like fraud and it's coming to an end.

I'm telling you we can do something and I David Russell Ellenberger an average citizen Content Creator am saying to you, I'm not scared of Google because I have nothing left to loose.  I David Russell Ellenberger am telling you there is something you too can do, if nothing else, tell all your friends to come to aka IT40, believe these words and Create your Content.

Further I promise to you and all who read this if we do prevail in the lawsuit against Alphabet Inc. We will use half of any monies we may receive to pay "content creators" a living wage. I pledge to anyone who is reading this, we will use half of any monies we may receive to help those who really do want to work on the internet and create content and tell us what they think. We will use half of any money so you can Get Paid, we want you to get paid for the content you create and get paid everyday and Get Paid to Vote create data and to be able to do this work online and from your home or anywhere in the world you care to be. Because in the words of an ancient scholar Y-O-U are the business Y-O-U are creating all the data, Y-O-U are the content creators and Y-O-U are all that matters.

Now the main thing I want you to take away form this and to know, Alphabet inc. is and has been committing fraud against you, me and everyone who uses the internet. I don't think Google started out to defraud the world it has just degenerated into this endless morass of corruption and fraud and no one seems to care, Well I care and I know you care too.  Sadly Google has been doing this with impunity for years and it is only getting worse. Please don't let them fool you with their lies and obfuscation. Do some research create some content build a website and research the analytics numbers you will find I am right. Google owes you, me and everyone online thousands if not 10's of thousands of dollars for all the data and advertising dollars they have co-opted from you and the rest of the world. So join with me don't use any Google products or file your own lawsuit in federal court against Alphabet inc. I will be glad to help you any way I can and show you how to do it if need be. It will take a sincere effort on your part but it will definitely help your self esteem, society and the world.

Now that's about all I have to say on this subject for now.  I will tell you this if you want more information or you have questions or comments for me, my email is [email protected] Thank you for reading looking and listening and believing in Please tell all your friends about us and don't forget to vote Thumbs up or down and refresh your page when your done. One last Thing, I need all the help I can get I am only 1 person but together and with todays technology we can move mountains and reframe society and our world the way we want it to be. One final note let me tell you about a new website coming to the world called Thank you ttyl


Top 40 People in the media for 03/25/2019 (2/13)

Top 40 People in the media for 03/25/2019 (4/13)