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Avenatti is alleged to have told Nike that he would cancel a press conference critical of the sports-apparel company only if it paid an unidentified client $1.5 million, and hired him and another California lawyer to conduct an internal investigation for $15 million to $25 million.
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A second set of charges followed in Los Angeles, where authorities accused Avenatti of embezzling client funds to cover his own expenses and debts.
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“A lawyer has a basic duty not to steal from his client,” said U.S. Attorney for Los Angeles Nick Hanna.
“Mr. Avenatti is facing serious criminal charges alleging he misappropriated client trust funds for his personal use and he defrauded a bank by submitting phony tax returns in order to obtain millions of dollars in loans.”
The complaint says that last Wednesday, Avenatti and a cooperating witness spoke by phone with lawyers for Nike “during which Avenatti stated, with respect to his demands for payment of milions of dollars, that if those demands were not met ‘I’ll go take ten billion dollars off your client’s market cap ... I’m not f---ing around.’ ”
Michael Avenatti arrested for alleged $20 million extortion attempt against Nike
Celebrity lawyer Michael Avenattii has been arrested on charges related to an alleged $20 million extortion of the athletic apparel company Nike, federal authorities said Monday.
A press conference is scheduled to discuss the charges against Avenatti in Los Angeles on Monday afternoon.
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Tmrw at 11 am ET, we will be holding a press conference to disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered.
This criminal conduct reaches the highest levels of Nike and involves some of the biggest names in college basketball.
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