Lawyer Avenatti charged with embezzlement, fraud, cheating on taxes

LOS ANGELES — Attorney Michael Avenatti has been charged in a 36-count federal indictment alleging he stole millions of dollars from clients, did not pay his taxes, committed bank fraud and lied in bankruptcy proceedings, federal prosecutors in California said Thursday.

Avenatti, 48, was indicted late Wednesday by a Southern California grand jury on a raft of additional charges following his arrest last month in New York on two related counts and for allegedly trying to shake down Nike for up to $25 million.

“These four areas of criminal conduct alleged in the indictment are all linked to one another because money generated from one set of crimes appears in other sets — typically in the form of payments to lull victims and to prevent Mr. Avenatti’s financial house of cards from collapsing,” U.S. Attorney Nick Hanna told reporters.

A jet co-owned by Avenatti was seized Wednesday as part of the ongoing investigation, officials said.

The attorney best known for representing porn actress Stormy Daniels in lawsuits against President Trump said Thursday on Twitter that he will plead not guilty to the California charges, which carry a potential prison sentence of 335 years in prison.

“I look forward to the entire truth being known as opposed to a one-sided version meant to sideline me,” he wrote.

The new charges do not include the New York extortion case alleging Avenatti demanded millions to stay quiet about claims he planned to reveal about Nike paying high school players. Avenatti has said he expects to be cleared in that case.

The 61-page Southern California indictment alleges Avenatti embezzled from a paraplegic man and four other clients and deceived them by shuffling money between accounts to pay off small portions of what they were due to lull them...