{"id":50085,"date":"2022-06-16T15:28:42","date_gmt":"2022-06-16T22:28:42","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=50085"},"modified":"2022-06-16T15:29:44","modified_gmt":"2022-06-16T22:29:44","slug":"michael-avenatti-admits-stealing-millions-of-dollars-from-clients-facing-up-to-83-years-in-prison","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=50085","title":{"rendered":"Michael Avenatti Admits Stealing Millions of Dollars from Clients, Facing Up to 83 Years in Prison"},"content":{"rendered":"<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0SANTA ANA, California\u00a0\u2013<\/strong><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1057 size-medium alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/Justice-Depart-300x300.jpg\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/Justice-Depart-300x300.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/Justice-Depart-150x150.jpg 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/Justice-Depart.jpg 320w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Michael Avenatti pleaded guilty Thursday to five felony offenses and admitted that he engaged in a scheme to defraud four of his legal clients, according to officials.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Avenatti, who has been suspended by the State Bar of California, specifically pleaded guilty to four counts of wire fraud \u2013 each related to one of four matters in which he embezzled money that should have been paid to clients \u2013 and one count of endeavoring to obstruct the administration of the Internal Revenue Code.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. District Court Judge James V. Selna scheduled a sentencing hearing for Sept. 9. <\/span><span style=\"font-size: 20px;\">Avenatti faces up to 83 years in federal prison.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Avenatti admitted guilt in each of the four legal matters discussed in a\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/attorney-michael-avenatti-named-federal-grand-jury-indictment-accuses-him-stealing\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">federal grand jury indictment<\/a>\u00a0that charged him with embezzling money from clients.<\/span><\/p>\n<p style=\"text-align: center;\"><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/Rgb-5sZmAMk\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Avenatti admitted that he engaged in the conduct charged in the four counts of the indictment.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">This includes the following:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 20px;\">Receiving money on behalf of clients into client trust account<\/span><\/li>\n<li><span style=\"font-size: 20px;\">Misappropriating the money<\/span><\/li>\n<li><span style=\"font-size: 20px;\">Lying to the clients about receiving the money or, in one case, claiming that the money had already been sent to the client.<\/span><\/li>\n<\/ul>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The charge of endeavoring to obstruct the administration of the Internal Revenue Code is one of 19 tax-related offenses in the indictment. <\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1379 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/IRS-seal-300x276.jpeg\" alt=\"\" width=\"300\" height=\"276\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/IRS-seal-300x276.jpeg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/IRS-seal.jpeg 800w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>In relation to the tax count he pleaded guilty Thursday, Avenatti admitted that he corruptly obstructed and impeded the IRS\u2019s efforts to collect unpaid payroll taxes.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The government estimates amount to approximately $5 million and include payroll taxes that he been withheld from the paychecks of employees of the Avenatti-owned company that operated Tully\u2019s Coffee.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After pleading guilty Thursday, Avenatti still faces a total of 31 counts \u2013 six wire fraud charges, 18 tax-related charges, two counts of bank fraud related to alleged false statements he made in an attempt to obtain loans from a federally insured financial institution, one count of aggravated identity theft for misusing the name of a tax preparer in relation to the bank fraud scheme, and four counts of bankruptcy fraud related to alleged false statements he made after his law firm was forced into bankruptcy, officials stated.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The government is reviewing the case to determine how it will move forward after Thursday&#8217;s guilty pleas. <\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In the event that the government elects to proceed on the remaining counts, Judge Selna will vacate the September 19 sentencing date, according to authorities.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 IRS Criminal Investigation conducted the investigation into Avenatti.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant United States Attorney Brett A. Sagel of the Santa Ana Branch Office and Ranee A. Katzenstein of the Major Frauds Section are prosecuting this case, according to authorities.<\/span><\/p>\n<p class=\"yiv2550311736MsoNormal\" style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0SANTA ANA, California\u00a0\u2013 Michael Avenatti pleaded guilty Thursday to five felony offenses and admitted that he engaged in a scheme to defraud four of his legal clients, according to officials. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Avenatti,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":50086,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3255],"tags":[],"class_list":["post-50085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 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