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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.
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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
From the Daily Caller News Foundation
As the Trump administration and Republican-controlled Congress move aggressively to roll back the climate alarm-driven energy policies of the Biden presidency, proponents of climate change theory have ramped up their scare tactics in hopes of shifting public opinion in their favor.
But CNN’s energetic polling analyst, the irrepressible Harry Enten, says those tactics aren’t working. Indeed, Enten points out the climate alarm messaging which has permeated every nook and cranny of American society for at least 25 years now has failed to move the public opinion needle even a smidgen since 2000.
Appearing on the cable channel’s “CNN News Central” program with host John Berman Thursday, Enten cited polling data showing that just 40% of U.S. citizens are “afraid” of climate change. That is the same percentage who gave a similar answer in 2000.
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Enten’s own report is an example of this fealty. Saying the findings “kind of boggles the mind,” Enten emphasized the fact that, despite all the media hysteria that takes place in the wake of any weather disaster or wildfire, an even lower percentage of Americans are concerned such events might impact them personally.
“In 2006, it was 38%,” Enten says of the percentage who are even “sometimes worried” about being hit by a natural disaster, and adds, “Look at where we are now in 2025. It’s 32%, 38% to 32%. The number’s actually gone down.”
In terms of all adults who worry that a major disaster might hit their own hometown, Enten notes that just 17% admit to such a concern. Even among Democrats, whose party has been the major proponent of climate alarm theory in the U.S., the percentage is a paltry 27%.
While Enten and Berman both appear to be shocked by these findings, they really aren’t surprising. Enten himself notes that climate concerns have never been a driving issue in electoral politics in his conclusion, when Berman points out, “People might think it’s an issue, but clearly not a driving issue when people go to the polls.”
“That’s exactly right,” Enten says, adding, “They may worry about in the abstract, but when it comes to their own lives, they don’t worry.”
This reality of public opinion is a major reason why President Donald Trump and his key cabinet officials have felt free to mount their aggressive push to end any remaining notion that a government-subsidized ‘energy transition’ from oil, gas, and coal to renewables and electric vehicles is happening in the U.S. It is also a big reason why congressional Republicans included language in the One Big Beautiful Bill Act to phase out subsidies for those alternative energy technologies.
It is key to understand that the administration’s reprioritization of energy and climate policies goes well beyond just rolling back the Biden policies. EPA Administrator Lee Zeldin is working on plans to revoke the 2010 endangerment finding related to greenhouse gases which served as the foundation for most of the Obama climate agenda as well.
If that plan can survive the inevitable court challenges, then Trump’s ambitions will only accelerate. Last year’s elimination of the Chevron Deference by the Supreme Court increases the chances of that happening. Ultimately, by the end of 2028, it will be almost as if the Obama and Biden presidencies never happened.
The reality here is that, with such a low percentage of voters expressing concerns about any of this, Trump and congressional Republicans will pay little or no political price for moving in this direction. Thus, unless the polls change radically, the policy direction will remain the same.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Energy security, resilience and affordability have long been protected by a continentally integrated energy sector.
The G7 summit in Kananaskis, Alberta, offers a key platform to reassert how North American energy cooperation has made the U.S. and Canada stronger, according to a joint statement from The Heritage Foundation, the foremost American conservative think tank, and MEI, a pan-Canadian research and educational policy organization.
“Energy cooperation between Canada, Mexico and the United States is vital for the Western World’s energy security,” says Diana Furchtgott-Roth, director of the Center for Energy, Climate and Environment and the Herbert and Joyce Morgan Fellow at the Heritage Foundation, and one of America’s most prominent energy experts. “Both President Trump and Prime Minister Carney share energy as a key priority for their respective administrations.
She added, “The G7 should embrace energy abundance by cooperating and committing to a rapid expansion of energy infrastructure. Members should commit to streamlined permitting, including a one-stop shop permitting and environmental review process, to unleash the capital investment necessary to make energy abundance a reality.”
North America’s energy industry is continentally integrated, benefitting from a blend of U.S. light crude oil and Mexican and Canadian heavy crude oil that keeps the continent’s refineries running smoothly.
Each day, Canada exports 2.8 million barrels of oil to the United States.
These get refined into gasoline, diesel and other higher value-added products that furnish the U.S. market with reliable and affordable energy, as well as exported to other countries, including some 780,000 barrels per day of finished products that get exported to Canada and 1.08 million barrels per day to Mexico.
A similar situation occurs with natural gas, where Canada ships 8.7 billion cubic feet of natural gas per day to the United States through a continental network of pipelines.
This gets consumed by U.S. households, as well as transformed into liquefied natural gas products, of which the United States exports 11.5 billion cubic feet per day, mostly from ports in Louisiana, Texas and Maryland.
“The abundance and complementarity of Canada and the United States’ energy resources have made both nations more prosperous and more secure in their supply,” says Daniel Dufort, president and CEO of the MEI. “Both countries stand to reduce dependence on Chinese and Russian energy by expanding their pipeline networks – the United States to the East and Canada to the West – to supply their European and Asian allies in an increasingly turbulent world.”
Under this scenario, Europe would buy more high-value light oil from the U.S., whose domestic needs would be back-stopped by lower-priced heavy oil imports from Canada, whereas Asia would consume more LNG from Canada, diminishing China and Russia’s economic and strategic leverage over it.
* * *
The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
As the nation’s largest, most broadly supported conservative research and educational institution, The Heritage Foundation has been leading the American conservative movement since our founding in 1973. The Heritage Foundation reaches more than 10 million members, advocates, and concerned Americans every day with information on critical issues facing America.
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