Infamous Lawyer Michael Avenatti Gets Devastating Legal News

In a rebuke of notorious celebrity lawyer Michael Avenatti, the 2nd U.S. Circuit Court of Appeals in Manhattan has upheld his conviction for defrauding Stormy Daniels, the adult film actress who alleged a sexual encounter with Donald Trump.

The court’s unanimous decision on Wednesday marked a significant fall from grace for Avenatti, who once positioned himself as a vocal critic of the Trump administration and even flirted with a presidential run.

The appeals court, in a decisive 3-0 ruling, found “overwhelming evidence” of Avenatti’s guilt, dismissing his claims that his conviction was marred by errors from the trial judge. Avenatti’s defense, riddled with appeals for leniency and claims of judicial missteps, was unequivocally rejected by the court.

In its ruling, the court highlighted the damning evidence against Avenatti, stating, “The evidence showed that Avenatti diverted funds that were owed to his client to his own bank account…and then sought to prevent his client from learning of the diversion so that he could conceal his fraud.”

“After he obtained his client’s funds, Avenatti spent those funds on his own expenses.”

The ruling continued, “He then repeatedly lied to his client to conceal his fraud by, for example, falsely stating that the funds had not yet been disbursed, and falsely stating that he had threatened to sue the publisher for not making payments. Avenatti’s conduct also demonstrated that he was aware that he was stealing client funds. He purchased a cashier’s check, for example, to make it appear to his client that money he had borrowed from a friend had been paid by his client’s publisher.”

Avenatti, who once basked in the media spotlight defending high-profile cases and making regular television appearances, now faces the harsh reality of his actions.

The appeals court also addressed Avenatti’s challenges to the jury instructions, particularly his objection to the district court’s decision to give a modified Allen charge, which he claimed was “impermissibly coercive.” The court found these arguments to be without merit, explaining that the instruction was a “modified Allen charge” that “carries with it a lesser threat of coercing jurors to abandon their conscientious beliefs” than a traditional Allen charge.

Avenatti represented Daniels in her lawsuit against former President Donald Trump, aiming to dissolve a nondisclosure agreement related to an alleged affair. However, the situation took a dramatic turn when Avenatti was accused of embezzling nearly $300,000 from Daniels.

He was charged with wire fraud and aggravated identity theft for allegedly using a fraudulent document to divert two payments from Daniels’ book publisher into an account he controlled, without her knowledge. Avenatti denied the allegations, but after a trial, he was convicted of wire fraud and identity theft in connection with stealing book advance fees from Stormy Daniels.

This case was part of a series of legal challenges for Avenatti, who faced multiple criminal charges on both coasts of the United States, including attempts to extort millions from Nike and other charges of fraud and embezzlement.