Michael Avenatti is accused of embezzling $2.5 million from an NBA player, report says
AP Photo/Jae C. Hong
- Attorney Michael Avenatti is accused of embezzling $1.5 million from Miami Heat player Hassan Whiteside in 2017, the Los Angeles Times reported on Sunday.
- Whiteside had wired Avenatti $2.75 million in January 2017 to cover the majority of a $3 million settlement with his ex-girlfriend, Alexis Gardner, who Avenatti was repping at the time.
- Prosecutors alleged that Avenatti told Gardner the payment only covered his share of the legal fees and that her settlement would come in 96 smaller monthly installments.
- Avenatti was entitled to $1 million in legal fees, but instead took $2.5 million and put it toward a private jet, prosecutors alleged.
- Visit Businessinsider.com for more stories.
Attorney Michael Avenatti is accused of embezzling $1.5 million from NBA player Hassan Whiteside in 2017, the Los Angeles Times reported on Sunday.Whiteside, who plays for the Miami Heat, had wired Avenatti $2.75 million in January 2017 to cover the majority of a $3 million settlement with his ex-girlfriend, Alexis Gardner, who Avenatti was repping at the time, court documents seen by the LA Times said.Advertisement
Avenatti was entitled to $1 million in legal fees, but instead took $2.5 million and put it toward a private jet, prosecutors alleged in an April 10 indictment by a California-based grand jury. The LA Times report does not make it clear where the remaining $250,000 went.
Prosecutors alleged that Avenatti told Gardner that Whiteside's payment only covered his share of the legal fees and that her settlement would come in 96 smaller monthly installments.Avenatti made several transfers to Gardner, totaling $194,000, but ceased payments in June 2018, prosecutors said.
Prosecutors alleged that Avenatti stopped the payments after claiming Whiteside had skipped installments.Read more: Michael Avenatti is accused of embezzling more than $3 million from a client with paraplegia and using the money to fund his coffee business and race-car teamAvenatti said in a statement to the LA Times that "No monies were ever embezzled from anyone."Advertisement
"I look forward to all of the relevant documents and facts being presented at trial," he told the LA Times.
Gardner and Whiteside confirmed the settlement to the LA Times, saying it "reflected Alexis' investment of time and support over a number of years as Hassan pursued a career in the NBA."It is unfortunate that something that was meant to be kept private between us is now being publicly reported," they said in a joint statement. "We have both moved on amicably and wish nothing but the best for each other."Advertisement
The Avenatti's alleged mishandling of the case is part of a 36-count federal indictment, in which the high-profile lawyer is accused from stealing from four other clients, including a mentally ill paraplegic man and makeup artist Michelle Phan.
Avenatti is separately facing charges over accusations that he tried to extort $20 million from Nike.
- Read more:
- Unpaid taxes, abruptly closed locations, and employee rebellions: Inside the 6-year downfall of Michael Avenatti's coffee chain
- Michael Avenatti's coffee chain reportedly failed to pay $3 million in taxes, as the lawyer used the company's funds to pay his rent, shop at Neiman Marcus, and more
- Justice Department slaps Michael Avenatti with new 36-count indictment that could carry a 335-year sentence
- Michael Avenatti says he's 'nervous' about potential prison time but proclaims innocence
- 63 new COVID-19 cases take overall tally in Puducherry past 800 mark
- Weak evidence for accuracy of COVID-19 antibody tests: Study
- Samsung Galaxy Z Flip gets Rs 7K price drop in India
- Five more COVID-19 deaths, 115 fresh cases in Rajasthan
- Here’s how Britannia is eating into ParleG’s market share for five years now— and now wants more of it
- Oxford Covid 19 Vaccine
- Bank Holiday in July
- Vodafone Idea News
- Types of Chinese App
- Chinese Apps
- Indian Covid 19 Vaccine
- Sharechat App
- Assam Floods Pictures
- H1-B Visa Impact
- Camscanner App Alternative
- Chinese Mobile Company
- Top Chinese App
- List of Banned Chinese Apps
- UC Browser App Alternative
- Foreign Investment
- India China Army Difference