Michael Avenatti charged with embezzlement, fraud, cheating on taxes

LOS ANGELES (WGN) -- 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.

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.

The attorney best known for representing porn actress Stormy Daniels in lawsuits against President Donald Trump said Thursday on Twitter that he will plead not guilty to the California charges.

“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 into thinking they were getting paid.

Avenatti, 48, is also charged with not paying personal income taxes, not paying taxes for his various businesses, including two law firms, and pocketing payroll taxes from the Tully's Coffee chain that he owned, the indictment said.