NEW: Lawyer Michael Avenatti Dealt Massive Blow In Court

In a significant legal setback, attorney Michael Avenatti’s appeal was rejected by the United States Court of Appeals for the Second Circuit on August 30, 2023. The court upheld Avenatti’s convictions for transmitting extortionate communications in interstate commerce, attempted Hobbs Act extortion, and honest-services wire fraud.

Additionally, the court affirmed a $259,800.50 restitution award to sportswear giant Nike.

Avenatti had been representing Los Angeles youth sports coach Gary Franklin in negotiations with Nike. The case revolved around Avenatti’s threats to cause Nike reputational and financial damage if they did not pay him millions of dollars. He was also accused of scheming to deprive Franklin of honest legal services by conditioning a settlement with Franklin on his own receipt of a solicited multi-million-dollar bribe.

During the appeal, Avenatti challenged the sufficiency of the evidence supporting each count of his conviction. He also questioned the trial court’s failure to provide his requested jury instruction on honest-services fraud and the legality of the restitution order. However, the appellate court found none of these challenges to have merit and affirmed the judgment of conviction.

Key moments in the case included Avenatti’s demand that Nike pay a civil settlement to his client and hire him for an internal investigation into corruption in basketball. Avenatti also threatened to hold a press conference and have a story appear in the New York Times if his demands were not met. Nike’s representatives, alarmed by Avenatti’s aggressive approach, contacted federal prosecutors after their meeting with him, which led to his arrest.

Court documents revealed that Avenatti was in a precarious financial situation at the time of the crimes. He had outstanding judgments against him totaling approximately $11 million.

The court’s decision to uphold the convictions and the restitution award marks a significant blow to Avenatti, who once gained national attention for representing adult film actress Stormy Daniels in her legal battles with former President Donald Trump.