AP

Avenatti charged with trying to extort millions from Nike

Mar 25, 2019, 4:42 PM

FILE - In this July 27, 2018 file photo, attorney Michael Avenatti replies to questions by reporter...

FILE - In this July 27, 2018 file photo, attorney Michael Avenatti replies to questions by reporters during a news conference in front of the U.S. Federal Courthouse in Los Angeles. U.S. prosecutors announced Monday, March 25, 2019, they have charged Avenatti with extortion and bank and wire fraud. A spokesman for the U.S. attorney in Los Angeles said Avenatti was arrested Monday in New York. (AP Photo/Richard Vogel, File)

(AP Photo/Richard Vogel, File)

NEW YORK (AP) — Michael Avenatti, the pugnacious attorney best known for representing porn actress Stormy Daniels in lawsuits against President Donald Trump, was arrested Monday on charges that included trying to shake down Nike for as much as $25 million by threatening the company with bad publicity.

Avenatti, who was also accused of embezzling a client’s money to pay his own expenses, was charged with extortion and bank and wire fraud in separate cases in New York and California. He was arrested in New York just minutes after tweeting that he planned to hold a news conference Tuesday to “disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered.”

“When lawyers use their law licenses as weapons, as a guise to extort payments for themselves, they are no longer acting as attorneys. They are acting as criminals,” said Geoffrey S. Berman, the U.S. attorney in New York, accusing Avenatti of engaging in “a shakedown.”

The allegations “paint an ugly picture of lawless conduct and greed,” said Nick Hanna, the U.S. attorney in Los Angeles. Avenatti describes himself on Twitter as an attorney and advocate, but the accusations describe “a corrupt lawyer who instead fights for his own selfish interests.”

Prosecutors in New York said their investigation began only last week and was complete in days.

In the California case, Avenatti allegedly misused a client’s money to pay his debts and those of his coffee business and law firm. Federal prosecutors said he also defrauded a bank by using phony tax returns to obtain millions of dollars in loans.

Avenatti allegedly threatened to hold a news conference last week on the eve of Nike’s quarterly earnings call and the start of the NCAA tournament to announce allegations of misconduct by Nike employees. The attorney and a co-conspirator demanded to be paid $15 million to $25 million and an additional $1.5 million for an Avenatti client to remain silent, the complaint said.

A person familiar with details of the investigation confirmed that the unidentified co-conspirator was Mark Geragos, a Los Angeles criminal defense lawyer known for his work with celebrities. The person spoke on condition of anonymity because the information was not made public by prosecutors.

Geragos, a CNN contributor, has a client list that has included Michael Jackson, Winona Ryder, Scott Peterson and most recently Jussie Smollett, the actor accused of fabricating a racist, anti-gay attack in Chicago. Geragos did not respond to messages seeking comment.

The Avenatti client is a coach of an amateur athletic union men’s basketball program in California, according to the papers. The AAU program coached by the client was sponsored by Nike for $72,000 annually, the complaint said.

Shortly before the charges came to light, Avenatti tweeted that he planned to hold another news conference regarding Nike on Tuesday. Less than 45 minutes later, prosecutors announced the extortion case.

Geoffrey S. Berman, the United States attorney for the Southern District of New York, points to a chart during a press conference, outlining details that lead to extortion charges for attorney Michael Avenatti, on Monday March 25, 2019, in New York. (AP Photo/Bebeto Matthews)

Nike officials told investigators that Avenatti claimed to know of rules violations by an amateur basketball team sponsored by Nike. Executives immediately reported the threats to federal authorities.

The company “firmly believes in ethical and fair play, both in business and sports, and will continue to assist the prosecutors,” Nike said in a statement.

Avenatti was in custody and did not respond to an email requesting comment or phone calls and text messages from The Associated Press.

He rose to national prominence by representing Daniels, whose real name is Stephanie Clifford, in a lawsuit to break a confidentiality agreement to speak about her alleged affair with Trump. He also made headlines in recent weeks for representing two women who accused R&B star R. Kelly of sexual abuse, and he briefly explored the idea of a presidential bid last year.

Daniels said she was “saddened but not shocked” by the arrest. She issued a statement Monday on Twitter saying she fired Avenatti a month ago after “discovering that he had dealt with me extremely dishonestly.” She said she would not elaborate.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

AP

close up of a peleton bike pictured, a recall has been issued for some...

Associated Press

Peloton recalling more than 2M exercise bikes because the seat post assembly can break during use

The recall includes approximately 2.2 million of the Peloton Bikes Model PL01. The bikes were sold from January 2018 through May 2023 for about $1,400.

11 months ago

Immigration Asylum Family Reunification Explainer....

JULIE WATSON Associated Press

US will let in at least 100,000 Latin Americans to reunite with families

President Joe Biden's administration has promised to offer more legal options for Latin American migrants to come to the United States to be reunited with their families.

11 months ago

two border patrol agents pictured, agents are dealing with a surge as title 42 reaches its expirati...

Associated Press

Title 42 has ended. Here’s what it did, and how US immigration policy is changing

The end of Title 42's use has raised questions about what will happen with migration preparing for an increase in migrants.

11 months ago

Rumman Chowdhury is pictured, she is the coordinator for the mass AI hacking exercise...

Associated Press

Hackers aim to find flaws in AI – with White House help

No sooner did ChatGPT get unleashed than hackers started “jailbreaking” the artificial intelligence chatbot – trying to override its safeguards so it could blurt out something unhinged or obscene. But now its maker, OpenAI, and other major AI providers such as Google and Microsoft, are coordinating with the Biden administration to let thousands of hackers […]

11 months ago

Parents of Ema Kobiljski, 13, mourn during the funeral procession at the central cemetery in Belgra...

JOVANA GEC Associated Press

Burials held in Serbia for some victims of mass shootings

Funerals are taking place in Serbia for some of the victims of two mass shootings that happened in just two days, leaving 17 people dead and 21 wounded, many of them children.

11 months ago

interest rate...

DAVID McHUGH AP Business Writer

Europe’s inflation inches up ahead of interest rate decision

Europe's painful inflation has inched higher, extending the squeeze on households and keeping pressure on the European Central Bank to unleash what could be another large interest rate increase.

11 months ago

Sponsored Articles

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Group of cheerful team members high fiving each other...

Visit Bear Lake

How To Plan a Business Retreat in Bear Lake This Spring

Are you wondering how to plan a business retreat this spring? Read our sample itinerary to plan a team getaway to Bear Lake.

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...

BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.

Skier being towed by a rider on a horse. Skijoring....

Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.

Banner with Cervical Cancer Awareness Realistic Ribbon...

Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.

Kid holding a cisco fish at winterfest...

Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.

Avenatti charged with trying to extort millions from Nike