Original subtitles

In this episode of American Greed, high -flying attorney Michael Avenatti. He

literally just exploded on the theme.

Joining us now is Michael Avenatti, the lawyer representing Stormy Daniels.

Avenatti gains fame waging a lurid legal battle against Donald Trump on behalf

of an adult film star.

The agreement was illegal from the get -go. It was all a ruse designed to shut

my client up. He was a fighter. He commanded the screen. He was fantastic

Your friend is a thug. Thank you.

Avenatti even considers a run for the White House himself. To replace the

president, he calls a fraud.

With our country under an unprecedented assault by a con man.

He became this overnight sensation, a liberal folk hero.

But the feds say this hero is no stranger to shady behavior.

Prosecutors allege he stole millions from a paraplegic client.

I am appalled.

by the conduct of Mr. Avenatti. They accuse him of fleecing Stormy Daniels.

needs fame. He needs money. One begets the other. One of the president's most

vocal critics faces new troubles tonight.

And as Avenatti runs toward the camera, the feds plant one of their own and

captured a criminal shakedown of the world's biggest shoe company.

American Greed has that tape.

A few million dollars doesn't move the needle for me.

Where does zealous advocacy stop and where does criminality begin?

It stops and it begins when you try to force someone to hire you. I'm not going

to go out with this. What man would risk the profession that put shoes on the

feet of his children?

And I'm not continuing to play games.

Well, his name is Michael Avenatti.

Michael Avenatti has sparred in a courtroom countless times, most famously

the lawyer for Stormy Daniels in her quest to speak freely about her alleged

affair with Donald Trump.

But on March 25th, 2019, the tables are turned and Michael Avenatti prepares for

the biggest battle of his life.

I'm going to make a brief statement, but I will not be accepting any questions.

Prosecutors allege Avenatti tried to parlay damaging information about shoe

giant Nike, allegations of corruption in their youth basketball programs, into

an enormous payday for himself.

This is a case about a shakedown, the prosecutor tells the jury in opening

arguments.

Michael Avenatti went to Nike and said, essentially, I'm going to hold a press

conference and reveal information about you unless you pay me money.

Avenatti's demands are laid out in undercover FBI tapes in which he speaks

attorneys for Nike.

A few million dollars doesn't move the needle for me.

I'm not around with this thing anymore.

Avenatti's defense attorneys in their opening arguments tell the jury Mr.

Avenatti is brash, he is aggressive, and sometimes he might even be offensive.

But they say it's not a crime to use the F word. It's not extortion because you

use harsh language.

And I'll go take $10 billion off your client's market cap.

But I'm not around.

Avenatti's relentlessness has long stood out, even in college when he works on a

political campaign.

I spent a good deal of time with Mike and got to know him pretty well and was

very impressed with him.

Mike Plant supervises Avenatti's opposition research for a congressional

candidate. In those free Internet days, Avenatti overnights his notes to

campaign headquarters.

One night...

Avenatti rushes to FedEx right before closing time when he encounters a

obstacle.

There are some train tracks that run adjacent to the airport there that the

FedEx office is just on the other side of those tracks.

And so when they got up to the railroad crossing, there was a train moving

across those tracks.

Mike apparently was getting very frustrated and worried that he was going

miss the deadline. So he grabbed all the stuff, jumped out of the car.

and proceeded to crawl between two train cars to get to the other side of the

tracks and get to the FedEx office.

Yeah, I just kind of shook my head in disbelief. I remember calling Mike and

saying, hey, buddy, this stuff's important, but it's not that important.

Avenatti transfers to the University of Pennsylvania, graduates, and then moves

on to George Washington University Law School, where he finishes number one in

his class.

The newly minted lawyer heads west to make his fortune.

He was an impressive young man, a standout, one of those people that you

that you kind of immediately know that this person's going someplace.

In Los Angeles, Avenatti joins O'Melveny & Myers, one of the city's most

prestigious law firms.

He worked with Daniel Petruccelli there, a well -known top -notch trial

attorney. Daniel Petruccelli became famous.

trying the civil case against O .J. Simpson and winning it. O .J. Simpson

responsible for the murders of his... Just like his boss, Michael Avenatti is

not afraid to sue celebrities, including an early scuffle with the man who'd one

day become his main adversary.

He did a case claiming theft of intellectual property against Donald

the context of Celebrity Apprentice.

He did a defamation case against Paris Hilton that was settled.

So he had had potentially high -profile cases before and had some successes.

Eventually, Avenatti forms his own firm, Eden Avenatti. He states his claim as

an aggressive plaintiff's attorney fighting for the little guy.

Some of his cases make headlines.

It's the first lawsuit of its kind related to the Ebola crisis.

Representing frontline medical workers and patients, Avenatti takes on Kimberly

Clark for allegedly selling defective hospital gowns and other personal

protective equipment.

Well, if you look through the report, you'll see that 77 % of the gowns that

were tested failed.

77 %?

77%. In 2017, Avenatti wins a stunning $454 million

jury award against Kimberly Clark.

I remember specifically my wife looking at me and saying, why wasn't that you?

Why didn't you get that verdict? Because that's the kind of case I handle.

Despite his success, Avenatti is still not a household name in 2017 when fellow

lawyer Brian Kabatek sees him at an annual plaintiff's attorney convention

Las Vegas.

The hostess of a dinner party there sees Avenatti and asks Kabatek, who's that

guy? The next year, same convention, different story.

The next year, he's representing Stormy Daniels. He comes into the room and

people are swarming him, having their picture taken with them. It's literally

like a rock star had walked into the room, like the second coming of Jesus

Christ. He was a super celebrity that day.

Over the next year, Michael Avenatti will appear on cable TV news more than

times.

He became this ubiquitous presence. You couldn't escape him. Anytime you turn on

TV, Michael Avenatti was on.

He literally just exploded on the scene.

Kate Brickley is a reporter for the Daily Beast.

And so because of that, my editor and I were becoming a little bit skeptical. I

mean, there were glowing profiles of him in the Washington Post and in the New

York Times that...

alluded to some of his business dealings. We wanted to see what was

on with him behind closed doors.

Up next, Bricolet follows the trail to Seattle and asks, why would a high

-flying lawyer take an interest in a bankrupt coffee company?

Michael likes his money, and Michael knows where his money is.

Michael Avenatti has a need for speed.

His ride is a Ferrari Spyder.

He has even driven in the legendary Le Mans race.

On his website, he didn't have a business suit. He was clothed in a

Here's this lawyer that wins these multi -million dollar verdicts. Women find

him attractive.

Reporter Kate Brigolet says she's never seen a lawyer like Michael Avenatti.

I didn't really know what to make of him.

And she has a gut feeling that perhaps things aren't what they appear to be.

Take his purchase in 2013 of the struggling coffee chain Tully's.

Avenatti teams up with TV star Patrick Dempsey of Grey's Anatomy fame to buy

Tully's out of bankruptcy.

In Seattle, it's a feel -good story.

Hey, good morning.

Robert Sapuentes is a former store manager.

When we heard that Patrick Dempsey was descending from the heavens to help us

out, we heard that he and this lawyer from L .A.

were going to swoop in and buy Tully's. I feel a tremendous responsibility to

this company and to my employees.

So we were very optimistic.

But seven months later... We start with breaking news. Actor Patrick Dempsey has

pulled out of the ownership group at Tully's Coffee. Dempsey says Avenatti

didn't live up to his promise of having enough cash to run Tully's and instead

secretly saddled the company with high -interest debt.

The two partners eventually settled their disagreement with terms

Dempsey declined to speak with American Greed.

It was very abrupt that Patrick Dempsey left.

right out of the gate, had us raising eyebrows about Michael Avenatti. He flat

out did not know what he was doing.

David Nold is a lawyer who represents one of Tully's landlords, Kemper

Development.

After a bitter dispute involving unpaid rent and contractors' liens, Nold's

client eventually wins several judgments against Tully's holding companies,

totaling $1 .1 million.

Collecting on those judgments against Avenatti's companies proves to be

difficult, Nold says.

And he soon finds himself in a cat -and -mouse game of where's Michael's money?

We would send people down to buy a cup of coffee and write a check for $3 .52,

because that's what a tall vanilla latte at Tully's costs, and they would write

a check. Why?

I wanted to see where that check was going to be deposited, because then we'd

on bank at night, and the very next day...

We'd have somebody garnish that bank account.

Down at the store level, Cifuentes notices a sudden change in Tully's

We were abruptly instructed to stop taking daily cash deposits to our normal

.S. bank accounts and instead take them to a different bank, the Bank of

America. That added to the speculation.

He was having us take cash to other bank accounts to avoid garnishment.

The government agrees.

Federal indictments accuse Avenatti of owing the IRS $5 .2 million.

Prosecutors allege Avenatti is skimming state and federal tax withholdings taken

from every employee's paycheck.

That employer has an obligation to immediately turn that over to the

There's no gray area. You have to turn it over.

In a criminal indictment, prosecutors say Avenatti has multiple bank accounts,

and he tweaks the names of the shell companies that own Tully's and changes

EINs, the employer identification numbers.

These tricks, the feds say, make his money harder to track, allowing Avenatti

stay one step ahead of the tax man.

Michael likes his money, and Michael knows where his money is.

And where's his money going?

According to federal indictments, of the $5 .2 million that should have gone to

the government, $2 .5 million went to his law firm.

$200 ,000 went to pay rent at Avenatti's Newport Beach home.

And every time we saw a race car, we'd see Tully branded all over this race

So we knew that a lot of the money was supporting his racing.

Meanwhile, Tully's isn't paying its bills, and vendors stop supplying coffee

beans.

We served coffee for as long as we could.

We served every last bean, and then once we were done, then we didn't know what

else to do other than close the store because no one could get a hold of

Avenatti. So we were just like, okay, I guess we'll go home now.

It's around this time in March 2018 that Avenatti hitches his wagon to a porn

star named Stormy.

And once that story broke, nationally, I mean, Avenatti all but

disappeared from the company. He just ghosted everybody.

And he just let the stores shutter and let hundreds of people lose their jobs.

As the stores close, Sepuentes sends internal e -mails from Tully's to a

reporter at the Seattle Times.

They result in this expose.

Sepuentes is fired from Tully's for publicizing internal documents.

Avenatti ultimately declined American Greed's request for an interview, but in

-mails to us, he called the government's allegations baseless and ridiculous.

He also says that Cifuentes knows nothing about me or the facts.

American Greed might as well have interviewed the Easter Bunny and Santa

Avenatti also says that Cifuentes was fired for theft.

He told people that I was fired for stealing money, which is easily

American Greed asked Avenatti to provide evidence to back up his claim, but he

did not do so.

So Fuentes denies the allegation and shared with American Greed documents

relating to his termination.

There is mention of the leaked emails, but nothing relating to theft.

The dude projected so hard.

It's like if he projected any harder, he could open a movie theater, like

accusing other people of being thieves and frauds, that kind of stuff. It's

like, dude, no, no, no, no, no.

It's you. That's the problem.

Up next, Michael Avenatti is taking the media world by storm. But what is he up

to when the cameras stop rolling?

I believe Mr. Avenatti's conduct on a 1 to 10 scale for despicability ranks 1

,000.

Michael Labanati's career rockets into the stratosphere in 2018 when he takes

the case of Stephanie Clifford, better known as Stormy Daniels.

My attorney and I are committed to making sure that everyone finds out the

truth. Stormy Daniels had alleged that she had an affair with Donald Trump.

Trump denies the affair. But through his personal attorney, Michael Cohen.

Trump strikes a non -disclosure agreement with Daniels for $130 ,000.

But she wanted to go to the press in 2018. Things had changed.

Donald Trump and whether or not he had done wrong things were very much in the

news. But she was limited by this hush money agreement.

Acting on Daniels' behalf, Avenatti attacks the legitimacy of the non

-disclosure agreement because, among other things, it was unsigned by Trump,

allegedly used the alias.

David Dennison. Because evidently the president did not sign the agreement

because he wanted to be in a position where he would have deniability.

White, who co -hosts the podcast All the President's Lawyers, says Avenatti is a

virtuoso at working the media.

Joining us now is Michael Avenatti, the lawyer representing Stormy Daniel.

This is about the extent that Mr. Cohen and the president have gone.

to intimidate this woman, to silence her. So the benefit of his approach was

that it really no longer mattered what ultimately happened in the case.

Everything she could possibly want to say about the relationship, about the

president of the United States' willingness to pay $130 ,000 in hush

an adult actress, all that was out.

Were you physically attracted to him? No.

Not at all? No.

Did you want to have sex with him?

No. But I didn't I didn't say no. I'm not a victim. I'm not.

It was entirely consensual. Oh, yes.

So you could not force the horse back into the barn. The guy doesn't even know

the law. He's a thug. Your friend is a thug. Thank you. That's a million

dollars. In a lot of respects, he was the perfect foil for Donald Trump

he was a lot like him.

He would say pithy comments.

It makes the Nixon tapes look like a church picnic.

He got right in the middle of it. We were never going to participate in any

cover -up. He was a fighter. Yes, it was an absolute disaster for the president.

So he became this overnight sensation, a liberal folk hero. I mean, people

really loved Michael Avenatti for taking on the president.

Tonight, I want to speak with you about the fight for the soul of our republic.

Pete Avenatti comes in August 2018 when he barnstorms Iowa, and in a high

-profile speech, flirts with the idea of replacing his archenemy.

When they go low, I say, we hit harder.

Do you plan to run for president?

We're going to see how people in New Hampshire respond, and then ultimately

going to make a decision.

Though Avenatti seems to be flying high, one person who worked for his company

says his wings are made of wax.

It's like, how could you possibly expect to be taken seriously as a presidential

candidate?

This dude couldn't even run a small coffee chain in a city that loves

coffee.

Avenatti's lawyers in a two -page summary of coverage of his presidential

ambitions, comparing his visit to Iowa with Barack Obama's in 2006, and quoting

a supporter saying, I haven't been this excited since JFK.

Despite the public chest -thumping, privately, Avenatti's finances are a

according to his longtime office manager.

She will later testify that his firm is hemorrhaging money.

Unfortunately, what a lot of people do is they get out in front of their skis a

lot. They have a good month or a good year, and they make an awful lot of

and suddenly they have an Italian sports car in their garage.

Avenatti needs cash.

And federal indictments accuse him of stealing it from clients, including

$300 ,000 from Stormy Daniels.

The Southern District is alleging that Michael Avenatti helped Stormy Daniels

negotiate a book deal. And then when the payments came due for that book deal,

instead of giving them to Stormy Daniels, Michael Avenatti took them, put

into his client trust account and paid himself, all the while lulling Stormy

thinking the money's on its way, the money's on its way, when allegedly it

already been paid and spent.

And it's not just his most famous client that Avenatti is accused of fleecing.

Indictments say he victimizes the most helpless two.

In 2012, a man named Jeffrey Johnson is locked up in L .A. County Jail for a

crime he didn't commit.

During that period of time, he was depressed and attempted suicide on two

occasions. In both suicide attempts, Johnson jumps off a balcony to the

floor below.

The first time, he avoids major injury, but the second time, he breaks his back

and severs his spinal cord.

So he's paralyzed from the waist down. He'll be in a wheelchair for the rest of

his life.

During the period of time he's in jail, he's abused by the deputies.

So he has had a very, very difficult life, and we're doing our very best

now to help him.

Like Mr. Callahan told you, my name is Jeffrey Johnson.

Dan Callahan is the lawyer who now represents Johnson.

But back in 2012, Johnson had hired Michael Avenatti.

Avenatti sues L .A. County for negligence in allowing Johnson to

in full view of the guards.

Well, actually, he did a fine job. He recovered his settlement, and that's

things broke down.

This is a copy of the check that the county of Los Angeles issued in the

of $4 million.

After getting a settlement in January of 2015,

He told the client several lies.

He told the client that the money would come in over 10 years and be paid

quarterly. That was a lie.

Ms. Robinotti had the payment within five days.

He told Mr. Johnson the settlement would be confidential.

He couldn't tell anybody.

That was a lie.

In fact, the $4 million settlement was approved by the L .A. Board of

Supervisors and posted on its website.

So what happened?

was he withheld the money from Mr. Johnson for a period of four years,

leading him on, saying it's coming, it's coming. But meanwhile, he made periodic

payments to Mr. Johnson between $900 and $1 ,900, basically monthly, for a total

of $124 ,000.

And Mr. Johnson knew no better. He believed and trusted Mr. Avenatti.

While presenting himself as a champion of the downtrodden...

With our country under an unprecedented assault by a con man who fights only for

himself. Avenatti was allegedly doing the very thing he railed against.

And degrades the vulnerable and the powerless.

Avenatti has been charged with 10 counts of wire fraud in the case of Jeffrey

Johnson and three other clients.

He has pleaded not guilty and awaits trial.

Avenatti's lawyer says in part the government's allegations are

false. The government fails to account for all of the monies that were spent

years by Mr. Abinadi, supporting Mr.

Johnson's most basic needs.

They also fail to account for the enormous out -of -pocket costs of

case.

Stormy Daniels declined an on -camera interview citing the upcoming trial, at

which she will be a witness.

She wrote us that she is fully cooperative with federal prosecutors.

Avenatti's attorney says, in part, that Avenatti's agreement with Stormy Daniels

specifically states that he is to receive a portion of any book deal.

This is only fair, he writes.

A deal is a deal.

He adds, we are anxious for Ms. Daniels' credibility to be tested at trial.

In the fall of 2018, these allegations are not yet public.

But privately, the walls are closing in on Michael Avenatti.

In December, he drops out of the race for president.

His law firm is evicted from lavish offices in Newport Beach for failure to

rent. He vacates the Waterfront Mansion.

And then there's the divorce from his second wife, Lisa Story.

A judge orders Avenatti to pay $1 .9 million in spousal and child support.

Michael Avenatti is in dire straits.

Prosecutors will later argue at trial.

But he sees a way out.

Up next, Avenatti is caught on tape with an outrageous plan to hit Nike where it

hurts.

In Los Angeles, California Supreme is a youth basketball program run by Gary

Franklin, seen here with Shaquille O 'Neal and his son, Sharif.

Coach Franklin has an impressive track record. Dozens of his players have gone

on to play in college and even the NBA.

The pros include DeAndre Ayton, the number one draft pick in 2018. As Gary

Franklin tells an independent documentary filmmaker, He built Cal

financial help from a corporate sponsor, Nike.

They liked what we were doing, and they actually got involved with us in terms

of sponsorship.

So I thought that that was huge, kind of took us over the top.

But Franklin has a problem.

As he will later testify in court, Nike executives direct him to give payments,

sometimes in envelopes stuffed with $10 ,000 in cash.

to the families of his top players.

The idea is for Nike to buy loyalty and to hitch its wagon to a rising star in

the hope that if one of the players goes pro, he might sign a sponsorship deal.

Gary felt uneasy about this from the get -go.

With help from his friend Jeffrey Auerbach, an entertainment consultant in

Beverly Hills, Franklin decides he wants to blow the whistle.

We spent time pulling together all the evidence.

Bank statements, the texts, the emails, wire payments, everything.

But just as we were about ready to figure this out, the Adidas case came

Today, we announce charges of fraud and corruption in the world of college

basketball. In September 2017, executives at Nike's rival Adidas are

for fraud and bribery.

Managers, advisors, and those affiliated with the sportswear company work

together to funnel money to families of some of the country's top high school

recruits. To Franklin and Auerbach, it looks all too familiar. And then when

those convictions came out, it was clear we had to move.

Thinking the best defense is a good offense, Auerbach eventually gets in

with Michael Avenatti.

And of course, I at the time had seen him on TV and watched him go toe -to

with Donald Trump, and I was very impressed with his drive and his

So I thought he would be a good choice.

Avenatti calls right back. They set up a meeting, and Franklin and Auerbach

share the evidence they've assembled.

Franklin tells Avenatti he's just a small player who felt forced by a

corporation into doing their dirty work.

And he wants three things.

Compensation, the Nike executives to be fired, and he wants his team back.

And he looked at it and I could tell he was blown away by all the evidence and

by the case.

And the whole meeting, the first meeting, was about justice. That's all

He was incredible in that first meeting.

The next week, they meet again.

Hi, it's Michael. Hope you're doing well, my friend.

Call me if you get a chance. I was wondering if you and Gary and I could

briefly. Gary and I are excited about this meeting because we've been waiting

have this strategy session.

According to Auerbach, Avenatti says he's aiming for a $1 million settlement

Gary Franklin.

A bit less than they expected, Auerbach says, but in the ballpark.

Michael's a little...

more anxious and he's just wanting to get right to it. And he just opens up

says, okay, guys, I'm taking a red -eyed in New York tonight.

I'm leaving in three hours.

Gary and I looked at each other and we were a little like, wow, really?

Avenatti says he's meeting with Nike's law firm, Boy Schiller, and he's already

had a phone call with them.

And he said, I told him he got a big problem.

And you guys need to meet with me tomorrow in New York.

There is just one red flag.

Avenatti hasn't even drawn up a written agreement to represent Franklin,

typically called an engagement letter.

Part of me is a little suspect of it.

But part of me is like, wow, he's a get it done guy.

And how many times we've all had an attorney that we had to push.

and kind of sometimes complain that things aren't moving fast enough. Well,

was like a speeding bullet train.

But there was an ulterior plan, which, of course, I wasn't aware of.

On March 19, 2019, Michael Avenatti arrives in New York and meets with

at Boy Schiller, the counsel for Nike.

I will cut straight to the chase, Avenatti says, according to notes taken

of the firm's associates.

I represent a whistleblower who has information that Nike directed him to

payments to the number one pick in last year's draft.

Avenatti demands $1 .5 million for his client and an unspecified amount for

himself to perform an internal investigation of alleged corruption at

It's not going to be cheap.

he warns.

The next day, Avenatti calls.

Meeting went great. Fantastic.

What he didn't know was Boy Schiller had called the Department of Justice.

You have to understand that Boy Schiller has lawyers who can pick up the phone

and talk to the Attorney General or the Director of the FBI.

The next day, when the parties talk on the phone, FBI agents are listening and

recording.

I'm not around with this and I'm not continuing to play games.

It's clear from Michael Avenatti's demeanor, the way he's talking to these

lawyers, that he thinks he's holding all the cards.

You guys know enough now to know you've got a serious problem.

And it's worth more in exposure to me to just blow the lid on this thing.

A few million dollars doesn't move the needle for me.

Avenatti's lawyer writes, Settlement discussions are highly contentious and

involve posturing, outrageous demands, and tough, foul language at times.

Goliath corporations do not react favorably to weakness, reciting poetry,

talking about puppies and daisies.

They agree to meet again, two days later.

This time, the lawyers for Nike have a hidden camera rigged up by the FBI.

At the table are Michael Avenatti, Mark Geragos, a well -known defense attorney

consulting with him on this matter, and Scott Wilson, outside counsel for Nike.

So here's the ask on the internal investigation.

Now, Avenatti has a specific number, up to $25 million for himself and Geragos,

seen here once the camera moves to run the investigation.

$25 million, $1 .5 million.

You can hear the attorney for Nike making it very clear that, okay, we

have a settlement on the $1 .5 million.

What's your demand again for the $20 -plus million?

I don't think that the settlement of Mr.

Franklin's civil claims for $1 .5 million is something we want here. Is

way to avoid your press conference without?

Hiring you and Mark to do an attorney investigation?

I'm not going to answer that.

Okay. It's kind of a strange question.

Can we settle this under, could we do this all under the civil settlement

agreement? That's what I'm asking. Wilson says he's struggling to explain

client, Nike, why Avenatti wants two separate payments.

Why can't they just come to terms with Coach Franklin and Avenatti can take his

cut from the settlement?

If the money went higher, could we do it all under the... Why

would we do that?

I don't think that it makes any sense for Nike to be paying an exorbitant

of money to Mr. Franklin in light of his role in it all.

It seems to me that they're just sitting there dunking on him. Their goal...

was to get him to say, whatever you pay my client, I get extra

money, tens of millions of it. And it doesn't matter what you pay my client,

have to pay me.

Because that's the crime.

In an email to American Greed, Avenatti's lawyer writes, Mr. Avenatti

an internal investigation because that was the only way Nike's rampant

corruption was going to get cleaned up, which is what Mr. Franklin and Mr.

Auerbach wanted.

Whatever his motive, Avenatti appears to think he's in the driver's seat.

I don't want to fall to the client at your hand where you could pay five, six

billion dollars in market capital.

This is going to be a major scandal.

I'm going to bring the power of my platform to bear to expose what is going

there appropriately.

If we can't reach a selling point.

The lawyers say they need a few days to get top executives at Nike to authorize

any settlement deal.

Okay. I will come with authority on Monday.

Okay. Avenatti may think it is big payday, but authority has a double

here.

Up next.

Avenatti was arrested today in Midtown Manhattan.

On Monday, March 25th, 2019, Michael Avenatti strides into the offices of

law firm in Midtown Manhattan.

He was there already with the bravado to go close this thing, and then he gets a

call from Gary Franklin. Franklin tells Avenatti that the FBI is at his front

door.

So before going into the meeting, he knew the jig is up.

When he walks into the law office, the FBI is waiting for him.

Avenatti was arrested today in Midtown Manhattan.

And I'm thinking this is a Twilight Zone episode.

The charges are based on Avenatti's scheme to extract more than $20 million

payments from a public company. At its core, this was an old -fashioned

shakedown. As soon as he posts bail, Avenatti does what comes naturally.

Hold a press conference.

I'm going to make a brief statement, but I will not be accepting any questions.

First of all, I want to thank the federal agents for their professionalism

courtesy today.

And it was pretty dramatic to see a guy like that, as a star, all of a sudden

fall like that.

Nearly a year later, in January 2020, Avenatti stands trial.

His lawyers argue that Gary Franklin got exactly who he hired.

This is what you guys wanted. You wanted somebody that was going to really go

after Nike.

Any claim now that Mr. Franklin and Mr. Auerbach do not want Mr. Avenatti to be

aggressive with Nike and use his media platform is ridiculous.

That's like hiring Beyonce to perform in a party and then later claiming that

you didn't want her to sing and dance.

I mean, it was the craziest thing I've ever seen. His attorney got up and it

just, you wanted him to go out, you wanted him to beat up Nike, you wanted

to do that. And I mean, that was their defense.

The government argues that Avenatti crossed the line into extortion by

money for himself when, unlike his client, he had no legitimate claim

Nike. If Michael Avenatti had said, you're going to pay my client $20

$50 million, then he would have a very strong defense to extortion. And then he

would have been able to take his cut.

So Michael Avenatti blundered into the folks saying that pigs get fat, hogs get

slaughtered.

After two days of deliberation, the jury comes back.

Guilty on all three counts.

Extortion, attempted extortion, and wire fraud.

After the verdict was read, he looks pretty crestfallen.

He didn't have that cockiness, the trademark Michael Avenatti cockiness. He

looked like he was in disbelief that he had fallen so hard.

For its part, Nike has not denied making payments to Franklin's player.

The company has not been charged with wrongdoing and issued a statement that

reads in part, the verdict speaks volumes.

Mark Garagos declined to speak on camera and has not been charged with any

wrongdoing.

Garagos told us he never represented Gary Franklin and was consulted by

only because he had worked with Nike in the past.

Garagos said the meeting with Nike's lawyers made him uncomfortable, and he

stayed away from the final meeting at which Avenatti was arrested.

Michael Avenatti initially agreed to an on -camera interview, but later placed

conditions on his participation.

He said he would not be interviewed if Robert Cifuentes and Ken White, who

criticized him on Twitter, were included in the program.

Eventually, he backed out, citing the COVID -19 pandemic.

His lawyer wrote, in part, Mr. Avenatti was targeted by Donald Trump and Trump's

Department of Justice.

Does anyone think that politics didn't play a huge role in all of this?

Currently on house arrest, Avenatti is scheduled to be sentenced in the Nike

case in early 2021.

But even then, his trials won't be over.

In the Southern District of New York, Michael Avenatti faces charges of

embezzling $300 ,000 from Stormy Daniels.

And in the Central District of California, he faces 36 criminal counts,

including tax evasion, bank fraud, and embezzling money from four clients,

including Jeffrey Johnson.

He has pleaded not guilty and is expected to stand trial in 2021.

People who worked with or wrote about Michael Avenatti over the years have

emotions. Mike Plant remembers him as a hard -charging kid.

who would smash through any barrier.

I can't help but feel a certain level of sadness for a life that was so full

with potential to end up where he's ended up now.

Perhaps his heart was in the right place at the beginning. I think he was an

adrenaline junkie. I think he thrived on winning.

He took it way too far.

I think he definitely flew too close to the sun.

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