Avenatti's COVID-19 Prison Release Extended 2 Months

By J. Edward Moreno
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Law360 (November 13, 2020, 4:59 PM EST) -- Embattled celebrity attorney Michael Avenatti has been granted a two-month extension to his home confinement by a California federal judge, making it his fourth coronavirus-related extension.

Avenatti, who is accused of embezzling his clients' money, will be confined to his Los Angeles home until at least Jan. 16. He has been in home confinement since April and was most recently set to return to prison on Nov. 17.

In his application for an extension filed Tuesday, Avenatti made arguments similar to those he has made in the past, citing the worsening COVID-19 pandemic and his personal health conditions, which could make him more vulnerable to the disease. The application also cited an American Medical Association article that said case rates are "substantially higher and escalating much more rapidly" in prisons than in the average population.

"With each passing day, the nation is setting new records relating to the COVID-19 pandemic and the risk to public health is exploding," said the application.

Judge James V. Selna granted the application Tuesday, though the order was not entered in the case docket until Thursday.

In September prosecutors asked Judge Selna to send Avenatti back to prison over "clear and convincing" evidence that he used a computer to draft court documents, in violation of his release conditions.

Prosecutors claim in the April 2019 indictment that Avenatti defrauded five of his former clients by lying to them about the details of settlements in their favor while using the money for his own ends.

Avenatti also signaled he is seeking sanctions against the government for allegedly accessing thousands of privileged documents, which prosecutors on Monday called an "insincere attempt [to] further delay" his embezzlement case.

According to prosecutors, Avenatti used millions of dollars in ill-gotten funds to pay bankruptcy creditors and other clients from whom he had taken money. Meanwhile, he was stiffing the government on $3.2 million in payroll taxes from his Tully's Coffee business between 2015 and 2017.

He is also charged with failing to file personal tax returns between 2014 and 2017 and failing to file returns for his law firms Eagan Avenatti LLP and Avenatti & Associates between 2015 and 2017.

In a separate case in New York federal court, Avenatti has also been found guilty of extorting Nike. He also faces another federal prosecution in New York over his alleged theft of hundreds of thousands of dollars owed to high-profile client Stormy Daniels from her book deal.

Counsel for Avenatti and government prosecutors declined to comment on the latest extension.

Avenatti is represented by H. Dean Steward.

The government is represented by U.S. Attorneys Julian L. Andre, Brett A. Sagel and Patrick R. Fitzgerald.

The case is U.S. v. Michael Avenatti, case number 8:19-cr-00061, in the U.S. District Court for the Central District of California.

--Additional reporting by Hailey Konnathand and Reenat Sinay. Editing by Andrew Cohen

For a reprint of this article, please contact reprints@law360.com.

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Case Information

Case Title

USA v. Avenatti


Case Number

8:19-cr-00061

Court

California Central

Nature of Suit

Judge

James V. Selna

Date Filed

April 10, 2019

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