Disgraced celebrity attorney Michael Avenatti is once again the subject of courtroom proceedings following an appellate decision that requires a recalibration of his previously rendered sentence. In 2022, Avenatti was sentenced to a 14-year term for embezzling settlement funds from his clients. However, according to a recent ruling by the US Court of Appeals for the Ninth Circuit, the Los Angeles trial court that determined his sentence made several legal errors. Notably, these included applying an unwarranted obstruction of justice enhancement and failing to consider the value of legal services and payments made to his clients when quantifying victim losses.
Avenatti, who gained notoriety for his legal battles with former President Donald Trump and his representation of adult film actress Stormy Daniels, pled guilty to wire fraud and embezzling funds from four clients. He has previously been convicted in two New York federal trials for both embezzling advance payments for Daniels’ memoir and attempting to extort $25 million from Nike Inc. The Ninth Circuit court highlighted that the Los Angeles court should have recognized the similarity between Avenatti’s conviction for embezzling Daniels’ advance with other embezzlement cases, impacting the decision on whether sentences should run concurrently.
The panel delivering the opinion consisted of Circuit Judges Michelle T. Friedland, Roopali H. Desai, and District Judge Karen E. Schreier, sitting by designation. Avenatti’s defense is currently being handled by the Federal Public Defender’s Office. The case citation is USA v. Avenatti, 9th Cir., No. 22-50301. Readers can find more details on this matter through Bloomberg Law.