Stormy Daniels lawyer, Michael Avenatti, pleaded guilty on five criminal charges of wire fraud and tax charges on Thursday in court in California. He was accused of cheating his law clients out of millions.
He could be forced to pay fines of over $1 million and restitution of $14 million.
Avenatti admitted he misused his clients’ settlement funds but challenged the amount of money involved, saying it was a lot less than $9 million. He has been representing himself in court.
Avenatti could face up to 83 years in prison. He has been accused of cheating his clients by transferring their money to his own accounts and committing bank fraud.The government may decide to try him on a remaining 36 count indictment.
“Michael Avenatti finally admitted what the IRS criminal investigation and the US attorney’s office has been saying for several years now: that he committed audacious acts to steal money from his clients to line his own pockets,” Assistant US Attorney Brett Sagel told reporters.
The convicted lawyer is already in prison in California on a five year sentence for crimes in New York, where he was convicted of stealing book profits from Stormy Daniels, the porn actress who made him famous when he represented her in her love affair case against Donald Trump.
Along with his association with Stormy Daniels, Avenatti is remembered for his efforts to challenge Donald Trump in the 2020 presidential election.
He was also convicted for attempting to extort the sportswear company Nike.
Avenatti pocketed his clients’ money, cheating them out of their settlements, and committed tax fraud, among other crimes.
For example, prosecutors said that he obtained a $4 million settlement for a paraplegic man in California, but cheated the man out of the settlement.
Sentencing date will be in September unless the government decides to pursue the remaining charges.