National Entertainment
Avenatti hit with Nike extortion claims, other charges
LOS ANGELES — A year ago, Michael Avenatti’s star was rising as the combative, media-savvy lawyer representing porn actress Stormy Daniels in her legal battles against President Donald Trump.
He hammered the president as a regular fixture on cable news and baited and bashed critics on Twitter while flirting with his own run for the White House.
Those days seemed like a distant memory as Avenatti was arrested Monday and federal prosecutors on both coasts announced charges that could send him to prison for the rest of his life.
Avenatti tried to shake down Nike for as much as $25 million by using his prominent position to threaten the company with bad publicity, federal prosecutors said. He was also accused of stealing a client’s settlement money to pay his own expenses and filing fake tax returns to get $4 million in loans from a Mississippi bank to fund a lavish lifestyle.
He was arrested at a New York law firm where he had gone to meet with Nike executives. It was just minutes after he tweeted that he planned to hold a news conference Tuesday to “disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered.”
“When lawyers use their law licenses as weapons, as a guise to extort payments for themselves, they are no longer acting as attorneys. They are acting as criminals,” said Geoffrey S. Berman, the U.S. attorney in New York.
Prosecutors in New York said their investigation began only last week while California investigators had been building a tax case against Avenatti for more than a year.
The allegations “paint an ugly picture of lawless conduct and greed,” said U.S. Attorney Nick Hanna in Los Angeles. Avenatti describes himself on Twitter as “fighter for good,” but the accusations describe “a corrupt lawyer who instead fights for his own selfish interests.”
Avenatti, 48, was ordered released on $300,000 bond after a brief court appearance Monday evening in New York. He did not enter a plea. Emerging from the courthouse, he said he expected to be cleared of the charges.
“For the entirety of my career, I have fought against the powerful. Powerful people and powerful corporations. I will never stop fighting that good fight,” he said. “I am highly confident that when all the evidence is laid bare in connection with these cases, when it is all known, when due process occurs, that I will be fully exonerated and justice will be done.”
Avenatti’s fame from the Daniels case made him a leading figure in the anti-Trump movement, with relentless cable news appearances, a hard-punching style and a knack for obtaining information about others’ wrongdoing.
His sharp reversal of fortune led critics to hit back on Twitter. Donald Trump Jr., whom Avenatti inaccurately predicted would be charged in the investigation into ties between his father’s 2016 presidential campaign and Russia, gloated.
“Good news for my friend @MichaelAvenatti, if you plead fast enough, you might just get to share a cell with Michael Cohen!” he wrote, referring to the former Trump lawyer set to go to prison next month for crimes that include orchestrating hush-money payments to Daniels. Trump Jr. mocked Avenatti by ending with the lawyer’s trademark hashtag #basta, an Italian word meaning “enough.”
Prosecutors said Avenatti and a co-conspirator initially approached Nike on behalf of a client who coached an Amateur Athletic Union basketball program sponsored by the company in California.
They claimed to have evidence of misconduct by Nike employees and threatened to hold a news conference last week on the eve of a company’s quarterly earnings call and the start of the NCAA tournament. Avenatti told Nike the company could either pay them $15 million to $25 million to investigate the allegations, or pay him more than $22 million for his silence, the criminal complaint said.
Two people familiar with the investigation confirmed the unidentified co-conspirator was Mark Geragos , a Los Angeles criminal
Geragos, a CNN contributor, has a client list that has included Michael Jackson, Winona Ryder, Scott Peterson, Colin Kaepernick and most recently Jussie Smollett, the actor accused of fabricating a racist, anti-gay attack in Chicago. Geragos did not respond to messages seeking comment. Within hours, CNN cut ties with him.
While lawyers sometimes make demands to seek out-of-court settlements, it crosses the line to extortion if they threaten to go public with damaging information to get something of value or gain leverage in a civil dispute, attorney Neama Rahmani said.
“The Department of Justice historically has been very cautious when charging attorneys, so they likely have evidence that Avenatti seriously crossed this line,” said Rahmani, a former federal prosecutor.
Nike officials told investigators Avenatti claimed to know of rules violations by an amateur basketball team sponsored by Nike. Executives immediately reported the threats to federal authorities.
The company “firmly believes in ethical and fair play, both in business and sports, and will continue to assist the prosecutors,” Nike said in a statement.
Avenatti rose to national prominence by representing Daniels, whose real name is Stephanie Clifford, in a lawsuit to break a confidentiality agreement to speak about her alleged affair with Trump. He also made headlines in recent weeks representing two women who accused R&B star R. Kelly of sexual abuse.
Daniels said she was “saddened but not shocked” by the arrest. She issued a statement Monday on Twitter saying she fired Avenatti a month ago after “discovering that he had dealt with me extremely dishonestly.” She said she would not elaborate.
While Avenatti’s lawsuit effectively tore up the gag order that threatened financial penalties if Daniels spoke about the case, a defamation lawsuit filed on her behalf against Trump backfired, and a court ordered her to pay the president’s $293,000 in legal fees.
Avenatti himself has been dogged with tax and financial troubles in recent years.
A U.S. bankruptcy court ordered his former firm to pay $10 million to a lawyer who claimed it had misstated its profits.
The bank fraud case involved $4 million in loans he got from The Peoples Bank in Biloxi, which prosecutors said he obtained by filing fraudulent tax returns claiming $14 million in income over three years. However, he never filed tax returns those years, nor paid the $2.8 million he reported on the forms. In fact, he still owed more than $850,000 to the IRS at the time for previous income.
Mark Pearson, the assistant agent in charge of IRS criminal investigations in Los Angeles, said Avenatti’s crimes supported a $200,000-a-month lifestyle, a car racing venture and pricey homes in the wealthy Orange County communities of Newport Beach and Laguna Beach.
Convictions on all charges carry up to 47 years in the New York case and 50 years in the California case, prosecutors said.
___
Melley reported from Los Angeles. Associated Press writers Jim Mustian in New York, Michael Balsamo in Washington and John Antczak in Los Angeles also contributed to this report.
Brian Melley And Larry Neumeister, The Associated Press
Alberta
Province adds $335 million over three years to attract more investment from Hollywood
Action! for Alberta’s film and television industry
Alberta’s screen-based sector has momentum, and Alberta’s government is helping to make the province a magnet for the job-creating film and television industry.
In 2020, Alberta’s government launched the Film and Television Tax Credit, causing the province’s film and television industry to grow in size and reputation. Since then, Alberta has attracted 129 productions with a total production value of $1.7 billion. This growth has resulted in approximately 9,000 direct and indirect jobs for Albertans.
To keep this momentum going, Alberta’s government continues to make changes to the program and increase investment in it. One year after the tax credit was launched, the cap was raised, resulting in a doubling of the province’s film and television sector. Now, Alberta’s government is increasing its investment to a total of $335 million over three years to continue attracting the attention and investment dollars of Hollywood.
“Alberta is experiencing exponential growth in our film and television sector, and we are well on our way to becoming a top Canadian jurisdiction for producers from around the world. Since the introduction of the Film and Television Tax Credit, the film and television sector in Alberta has doubled. Productions reach every part of Alberta – big cities, small towns and rural locations – and use local resources, businesses, accommodations and contractors, supporting thousands of jobs.”
As the province’s film and television industry grows, so does the quality and number of Alberta-made productions. To help grow and promote local talent and productions, Alberta’s government is also doubling the funding to the Alberta Made Screen Industries Program. This funding will support local producers and attract productions from around the world to set up shop in Alberta.
“Alberta-made film and television productions showcase Alberta’s unique culture, breathtaking landscapes and stories to audiences across the globe. We are increasing our support to smaller productions because they provide a unique Alberta-made training ground for emerging talent and create local, highly skilled workers in the sector.”
The Film and Television Tax Credit and Alberta Made Screen Industries Program work together to showcase the beauty and diversity of Alberta, create jobs, diversify the economy and support hospitality, service and tourism in the province. These targeted incentives to the film and television industries are helping to ensure Alberta remains the economic engine of Canada for years to come and the next film and television hub.
“The tax credit is central to the success of the industry. This is a competitive industry globally, and here in Alberta we’re fortunate we had the cap removed. Now we can see productions with budgets from $100,000 to well over $100 million. Now that we have a robust production environment, there are more opportunities for people to have well-paying creative jobs.”
“The Alberta government has provided supports for the film and television industry that provide certainty. It gives us more flexibility in how we’re moving forward in our film and television work and the way that we’re running our businesses.”
“Seeing the increase to the Alberta Made Production Grant in the last budget has been fantastic. It will help grow the local industry, which means so much to local performers because that’s where they build their resumés. It allows them to be a working performer, and not take side jobs or a day job somewhere else, and really focus on their craft.”
Quick facts
- According to Statistics Canada data:
- Every $1 million of production activity in the screen-based production sector creates about 13 Alberta jobs.
- Every $1 million of government investment under the Film and Television Tax Credit program is expected to support about 85 Alberta jobs.
- The film and television industry is experiencing significant growth nationally and globally.
- Every year, Alberta graduates more than 3,000 creative industry professionals from its post-secondary institutions.
- The production workforce has grown 71 per cent from 2017, or by about 4,000 workers across all positions.
- Alberta’s Film and Television Tax Credit supports medium- and large-scale productions with costs over $499,999 through a refundable tax credit on eligible Alberta production and labour costs to corporations that produce films, television series and other eligible screen-based productions.
- The Alberta Made Production Grant supports productions with a budget of up to $499,999.
- The Alberta Made Screen Industries Program, through the Alberta Made Production Grant, supports smaller productions that do not qualify for the tax credit, covering 25 per cent of eligible Alberta production costs to a maximum of $125,000.
- Every $1 investment in the Alberta Made Production Grant program generates an additional $4 in economic return.
Alberta
Edmonton to host “Road to the JUNOS Concert Series” leading up to Juno Awards week
From Explore Edmonton
Road to The JUNOS Concert Series Builds Excitement to JUNO Week.
Access and Diversity Key for Fans and Artists.
The JUNOS 2023 Host Committee is excited to announce an Edmonton-based concert series, titled Road to The JUNOS, as a lead-up to The 52nd Annual JUNO Awards Broadcast and JUNO Week from March 9-13.
The concert series will be set in small, intimate venues around Edmonton and feature local and regional artists who one day may end up on the JUNOS stage. Road to The JUNOS is a collaboration between the JUNOS 2023 Edmonton Host Committee, CBC Music and Explore Edmonton. It aims to provide excitement and create momentum leading into Canada’s biggest celebration of music.
The 10-show concert series will run from Monday, February 6 through Tuesday, February 28 at local venues in Edmonton. Of note, the artists playing these events come from a wide variety of backgrounds and genres and offer an opportunity to see some of Canada’s newest and most exciting talent. Fans can be a part of an intimate JUNOS concert with an affordable advance ticket price of only $10.
Road to The JUNOS is possible thanks in part to federal funding through PrairiesCan’s Tourism Relief Fund. This Fund is positioning Canada as a destination of choice for domestic and international travel. PrairiesCan administers the Fund in Alberta.
“Edmonton is a vibrant and dynamic cultural hub and our government’s support for Road to The JUNOS will bring that experience to visitors from across Canada and around the globe. Through the Tourism Relief Fund and our partnership with organizations such as Explore Edmonton, communities across Canada will capitalize on the jobs and economic activity generated through Edmonton’s growing tourism industry.”
– The Honourable Dan Vandal, Minister for PrairiesCan
“Road to The JUNOS is an important step in positioning Edmonton as an all-season destination and celebrating our community’s business and arts districts. I’m proud to see our government supporting Edmonton to build on its leadership in arts and culture while strengthening local tourism activity that benefits businesses in our city.”
– The Honourable Randy Boissonnault, Minister of Tourism and Associate Minister of Finance
“Road to The JUNOS is an exciting opportunity to grow Alberta’s music industry, showcasing local talent to visitors from all parts of Canada. The Alberta government is proud to support this series of concerts that features Alberta’s talent on stage as well as the venues, promoters and other music professionals.”
– The Honourable Jason Luan, Alberta Minister of Culture
“Canada has a long history of producing exceptionally talented musicians. The Road to The JUNOS concert series hopes to help give a platform to some of our up-and-coming artists and audiences a chance to say ‘we saw them when’.”
– Aimée Hill, co-chair, 2023 Host Committee
“Explore Edmonton is proud to support The JUNO Awards in March and we are delighted to be a part of this grassroots concert series. Promoting our local music venues, supporting talented Canadian musicians, and giving Edmontonians quality music experiences at an affordable price is such an important piece to the whole JUNOS experience. And we get to show off a little for the rest of Canada!”
– Traci Bednard, CEO of Explore Edmonton
The JUNOS Experience starts here. For more information and to buy tickets, visit: https://edmonton.junoawards.
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