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Mistrial Declared on Charges That Lawyer Michael Avenatti Embezzled Settlement Intended for SNT
A federal judge in California has declared a mistrial more than a month into a case in which prosecutors charged that Michael Avenatti, the attorney who represented porn star Stormy Daniels in her lawsuit against then-president Donald Trump, stole millions from clients, including pocketing most of a $4 million settlement rather than setting up a special needs trust for a disabled client.
Federal prosecutors in California have accused Avenatti of negotiating and collecting settlements totaling $10 million on behalf of five clients and keeping the money.
“They trusted Michael Avenatti completely, and he violated their trust and stole their money,” Assistant U.S. Attorney Brett Sagel told jurors in his opening statement at the trial in Santa Ana.
One of those clients was Geoffrey Ernest Johnson, a man suffering from mental illness who won a $4 million settlement from Los Angeles County after the second of two suicide attempts in jail left him a paraplegic. Johnson, Sagel told the jury, intended to use the settlement money to buy a handicapped-accessible home and van to “make living life in a wheelchair easier.” Prosecutors charged that Avenatti never told Johnson about the payment and instead spent most of the money on himself and his business interests, including a now-defunct Seattle coffee chain.
Johnson testified that he’d repeatedly asked Avenatti to set up a special needs trust so that his future settlement would not jeopardize his Social Security benefits. Johnson clams that Avenatti lied to him, saying that the county had failed to approve the special needs trust.
Avenatti, who is suspended from practicing law in California, was representing himself. He had accused prosecutors of failing to take into account his firm’s legitimate expenses that are deductible from settlements. He made six requests for a mistrial, the last of which worked.
U.S. District Judge James Selna of the Central District of California, ruled that a government team should have shared with Avenatti evidence it had gleaned from Avenatti's firm servers on the law firm expenses. Although the judge found no willful misconduct, he said the failure to turn the data over to Avenatti hindered his ability to challenge the government’s allegations on the misappropriated amount.
A new trial for Avenatti in the case has been scheduled for October 12.
In a separate case, Avenatti was recently sentenced to two-and-a-half years in prison in New York for attempting to extort up to $25 million from Nike by threatening it with bad publicity. He is appealing that decision.
The lawyer who once considered running for president against Trump in 2020 faces several other future trials as well. The California district court split a 36-count indictment into two trials, and in the second trial Avenatti will face charges of bankruptcy, bank and tax fraud. In another criminal case in New York, is accused of cheating Daniels out of hundreds of thousands of dollars.
For more on the judge's decision from ABAJournal, click here.
For more on the trial before the mistrial declaration, click here and here.
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Mistrial Declared on Charges That Lawyer Michael Avenatti Embezzled Settlement Intended for SNT
A federal judge in California has declared a mistrial more than a month into a case in which prosecutors charged that Michael Avenatti, the attorney who represented porn star Stormy Daniels in her lawsuit against then-president Donald Trump, stole millions from clients, including pocketing most of a $4 million settlement rather than setting up a special needs trust for a disabled client.
Federal prosecutors in California have accused Avenatti of negotiating and collecting settlements totaling $10 million on behalf of five clients and keeping the money.
“They trusted Michael Avenatti completely, and he violated their trust and stole their money,” Assistant U.S. Attorney Brett Sagel told jurors in his opening statement at the trial in Santa Ana.
One of those clients was Geoffrey Ernest Johnson, a man suffering from mental illness who won a $4 million settlement from Los Angeles County after the second of two suicide attempts in jail left him a paraplegic. Johnson, Sagel told the jury, intended to use the settlement money to buy a handicapped-accessible home and van to “make living life in a wheelchair easier.” Prosecutors charged that Avenatti never told Johnson about the payment and instead spent most of the money on himself and his business interests, including a now-defunct Seattle coffee chain.
Johnson testified that he’d repeatedly asked Avenatti to set up a special needs trust so that his future settlement would not jeopardize his Social Security benefits. Johnson clams that Avenatti lied to him, saying that the county had failed to approve the special needs trust.
Avenatti, who is suspended from practicing law in California, was representing himself. He had accused prosecutors of failing to take into account his firm’s legitimate expenses that are deductible from settlements. He made six requests for a mistrial, the last of which worked.
U.S. District Judge James Selna of the Central District of California, ruled that a government team should have shared with Avenatti evidence it had gleaned from Avenatti's firm servers on the law firm expenses. Although the judge found no willful misconduct, he said the failure to turn the data over to Avenatti hindered his ability to challenge the government’s allegations on the misappropriated amount.
A new trial for Avenatti in the case has been scheduled for October 12.
In a separate case, Avenatti was recently sentenced to two-and-a-half years in prison in New York for attempting to extort up to $25 million from Nike by threatening it with bad publicity. He is appealing that decision.
The lawyer who once considered running for president against Trump in 2020 faces several other future trials as well. The California district court split a 36-count indictment into two trials, and in the second trial Avenatti will face charges of bankruptcy, bank and tax fraud. In another criminal case in New York, is accused of cheating Daniels out of hundreds of thousands of dollars.
For more on the judge's decision from ABAJournal, click here.
For more on the trial before the mistrial declaration, click here and here.
Mistrial Declared on Charges That Lawyer Michael Avenatti Embezzled Settlement Intended for SNT
<p><img alt="Mistrial Declared on Charges That Lawyer Michael Avenatti Embezzled Settlement Intended for SNT" src="https://cdn.elderlawanswers.com/common/uploads/photos/18405-Michael Avenatti.jpg" style="float:right; height:133px; margin-left:10px; margin-right:10px; width:200px" />A federal judge in California has declared a mistrial more than a month into a case in which prosecutors charged that Michael Avenatti, the attorney who represented porn star Stormy Daniels in her lawsuit against then-president Donald Trump, stole millions from clients, including pocketing most of a $4 million settlement rather than setting up a special needs trust for a disabled client.</p>
<p>Federal prosecutors in California <a href="https://attorney.elderlawanswers.com/michael-avenatti-charged-with-embezzling-4-million-intended-for-snt-17133" target="_blank">have accused Avenatti</a> of negotiating and collecting settlements totaling $10 million on behalf of five clients and keeping the money.</p>
<p>“They trusted Michael Avenatti completely, and he violated their trust and stole their money,” Assistant U.S. Attorney Brett Sagel told jurors in his opening statement at the trial in Santa Ana.</p>
<p>One of those clients was Geoffrey Ernest Johnson, a man suffering from mental illness who won a $4 million settlement from Los Angeles County after the second of two suicide attempts in jail left him a paraplegic. Johnson, Sagel told the jury, intended to use the settlement money to buy a handicapped-accessible home and van to “make living life in a wheelchair easier.” Prosecutors charged that Avenatti never told Johnson about the payment and instead spent most of the money on himself and his business interests, including a now-defunct Seattle coffee chain.</p>
<p>Johnson testified that he’d repeatedly asked Avenatti to set up a special needs trust so that his future settlement would not jeopardize his Social Security benefits. Johnson clams that Avenatti lied to him, saying that the county had failed to approve the special needs trust.</p>
<p>Avenatti, who is suspended from practicing law in California, was representing himself. He had accused prosecutors of failing to take into account his firm’s legitimate expenses that are deductible from settlements. He made six requests for a mistrial, the last of which worked.</p>
<p>U.S. District Judge James Selna of the Central District of California, ruled that a government team should have shared with Avenatti evidence it had gleaned from Avenatti's firm servers on the law firm expenses. Although the judge found no willful misconduct, he said the failure to turn the data over to Avenatti hindered his ability to challenge the government’s allegations on the misappropriated amount.</p>
<p>A new trial for Avenatti in the case has been scheduled for October 12.</p>
<p>In a separate case, Avenatti was recently <a href="https://apnews.com/article/michael-avenatti-nba-sentencing-sports-health-30982af5b85ce95fc8baf9704191f5ed" target="_blank">sentenced to two-and-a-half years in prison</a> in New York for attempting to extort up to $25 million from Nike by threatening it with bad publicity. He is appealing that decision.</p>
<p>The lawyer who once considered running for president against Trump in 2020 faces several other future trials as well. The California district court split a 36-count indictment into two trials, and in the second trial Avenatti will face charges of bankruptcy, bank and tax fraud. In another criminal case in New York, is accused of cheating Daniels out of hundreds of thousands of dollars.</p>
<p>For more on the judge's decision from <em>ABAJournal</em>, <a href="https://www.abajournal.com/news/article/lawyer-who-once-represented-stormy-daniels-wins-mistrial-on-charges-he-stole-from-clients" target="_blank">click here</a>. </p>
<p>For more on the trial before the mistrial declaration, click <a href="https://apnews.com/article/trials-california-embezzlement-michael-avenatti-a0f5f2734cc779e562ffe418978a45db" target="_blank">here </a>and <a href="https://www.latimes.com/california/story/2021-07-21/michael-avenatti-embezzlement-trial-opens" target="_blank">here</a>.</p>
<p> </p>
<p> </p>
<p> </p>
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A federal judge in California has declared a mistrial more than a month into a case in which prosecutors charged that Michael Avenatti, the attorney who represented porn star Stormy Daniels in her lawsuit against then-president Donald Trump, stole millions from clients, including pocketing most of a $4 million settlement rather than setting up a special needs trust for a disabled client.
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