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Michael Avenatti Pleads Guilty To Fraud, Tax Charges

Michael Avenatti is seen outside the Daniel Patrick Moynihan Federal Courthouse on Oct. 8, 2019 in New York City. (Alec Tabak/New York Daily News/Tribune News Service via Getty Images)

Michael Avenatti, the former lawyer for Stormy Daniels, has pleaded guilty to four counts of wire fraud and a tax-related charge in federal court.

Avenatti made the plea during a court hearing in Santa Ana on Thursday. He faces up to 83 years in prison.

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The lawyer, who is representing himself, said he did not reach a deal with federal prosecutors earlier in the week but decided to change his plea to hold himself accountable and spare his family of further embarrassment.

Avenatti was accused of cheating clients out of millions by negotiating and collecting settlement payments on their behalf and putting the money in accounts that he controlled.

He admitted to obstructing and impeding efforts by the Internal Revenue Service to collect unpaid payroll taxes, totaling $5 million

Avenatti could also face an additional 31 counts depending on whether the government wants to pursue those. 

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A sentencing hearing was scheduled for Sept. 19, but, if the government decides to try him on any of the remaining counts, that date will likely be changed.

Fox News reported that Avenatti “will be forced to pay fines in excess of $1 million and restitution which the government says is $14 million”.

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He is currently serving five years in a federal prison in California for convictions in two cases in New York after stealing book proceeds from Stormy Daniels.

Avenatti was also previously convicted of trying to extort Nike if the company didn’t pay him up to $25 million.

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