FOLLOW US

California News April 11, 2019 3 mins read

Michael Avenatti charged with 36 counts of fraud and tax offenses

California News ı By Marivic Cabural Summers

0 Comments

Michael Avenatti

A California federal grand jury indicted Michael Avenatti, a celebrity lawyer, with 36 counts of fraud and tax offenses on Wednesday.

The indictment comes after federal prosecutors New York arrested and charged him last month for allegedly attempting to extort Nike. Federal prosecutors in Los Angeles also arrested and charged him with separate criminal complaints.

Allegations against Avenatti

Based on the indictment, Avenatti allegedly stole millions of dollars from clients including a paraplegic. He is facing 10 counts of wire fraud involving more than $12 million he received as settlement payments for his clients in four cases. He allegedly lied to the clients about receiving the money and misappropriated the money. In one of the cases, he falsely claimed that the money was already sent to the client.

Additionally, Avenatti is facing 19 counts of tax-related offenses. He allegedly stole millions of dollars of employment taxes that his coffee company, Global Baristas LLC (GBUS) should have paid to the Internal Revenue Service (IRS).

Starting 2015 until 2017, GBUS failed to pay around $3.2 million in federal payroll taxes including at least $2.3 million in trust fund taxes. GBUS collected the trust fund taxes from its employees’ paychecks. IRS initiated a collection action by filing a federal tax lien against GBUS. Avenatti allegedly tried to block the agency’s efforts to collect the taxes.

Furthermore, Avenatti is facing two counts of bank fraud. He allegedly submitted fraudulent loan applications that included tax returns not with the IRS.

Moreover, he is facing four counts of bankruptcy fraud charges for allegedly concealing his law firm’s assets from the Bankruptcy Court.

Avenatti says he is “not guilty”

In a statement, Acting U.S. Attorney Nick Hanna said the celebrity lawyers’ criminal conducts are linked together. He noted that the “money generated from one set if crimes appear in other sets—typically in the form of payments to lull victims and to prevent Mr. Avenatti’s financial house of cards from collapsing.”

On the other hand, Acting Special Agent in Charge Ryan L. Korner with IRS Criminal Investigation in Los Angeles, commented, “Individuals who intentionally thwart the IRS and fail to meet their tax obligations will be caught and they will be held accountable.”

In a tweet, Avenatti said he will “fight all charges” against him and will “plead not guilty.”  He added that he is “entitled to a full presumption of innocence.”

Previous Article

New York State Senate Approves Tenant Protection Act

Read More
2032 Posts

Marivic Cabural Summers

Marivic has been a freelance writer/journalist for nearly 20 years. She strictly adheres to the ethical standards in journalism. For her, integrity is everything. Readers deserve to know that real story. She previously worked as research analyst and editor at Lombardi Financial and has written for various websites including The Motley Fool, ValueWalk, IcannWiki and was a news writer/radio program producer at Nation Broadcasting Corporation. Marivic holds a BA in Mass Communications.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America October 1, 2026
Zurich Beazley Takeover Officially Closes, Creating…

Months of regulatory hurdles, court hearings and shareholder maneuvering have…

By – Rachel Moore
America October 1, 2026
Sailors Rescued After Whale Collision Sinks…

One moment, four sailors were cruising through the remote South…

By – Rachel Moore
America October 1, 2026
JPMorgan Executive Renews Countersuit After Ex-Banker’s…

The “sex slave” allegations involving JPMorgan Chase executive Lorna Hajdini…

By – Jackie Allen
America October 1, 2026
Diesel Crisis: Louisiana Relief Meets New…

Louisiana’s diesel crisis has entered October with emergency relief still…

By – Michallie Harrison
America October 1, 2026
Newsom Signs AI Laws Barring California…

What California Workers and Lawyers Need to Know AI cannot…

By – Samuel Lopez
America September 30, 2026
Senate Sponsor Says Mercedes-Benz Won’t Be…

The Fight Over Who Gets Shut Out Sponsor Bernie Moreno…

By – Samuel Lopez
America September 30, 2026
Senate Sponsor Says Mercedes-Benz Won’t Be…

The Fight Over Who Gets Shut Out Sponsor Bernie Moreno…

By – Samuel Lopez
America September 30, 2026
“NHI vs. NHI” David Grusch Tells…

Key Takeaways Former U.S. intelligence officer David Grusch told Joe…

By – Samuel Lopez
America September 30, 2026
Two-Time NBA Champion J.R. Smith Arrested…

What We Know About the Smith Arrest Smith, 41, is…

By – Samuel Lopez
America September 30, 2026
Former NASCAR Driver Jennifer Jo Cobb…

What This Verdict Means A North Carolina jury found former…

By – Samuel Lopez
America September 30, 2026
Chad Lowe’s Daughter Fiona Dies at…

Actor Chad Lowe and his wife, producer Kim Painter, are mourning the…

By – Jackie Allen
America September 30, 2026
Arnold Schwarzenegger Heads to Jury Trial…

What the Jury Will Decide Schwarzenegger has conceded negligence in…

By – Samuel Lopez
America September 29, 2026
Clone Saga could replace Spider-Noir as…

The Clone Saga could be coming to television as Sony…

By – Jackie Allen
America September 29, 2026
Unabomber: Russell Crowe true-crime thriller surges…

“Unabomber,” Netflix’s new true-crime drama starring Russell Crowe and Jacob…

By – Jackie Allen
America September 29, 2026
Cornell University case draws renewed scrutiny…

ITHACA, N.Y. — A key piece of evidence in the…

By – Jackie Allen
America September 28, 2026
New York Times Executive Jonathan McKinsey…

A New York Times technology executive was fatally shot Saturday…

By – Jackie Allen
America September 28, 2026
Cornell 7: University Pushes Back on…

The Cornell 7 case has drawn renewed scrutiny after Cornell…

By – Jackie Allen
America September 28, 2026
‘The Spider’ Extradited to U.S. From…

Geovany Andres Rojas, known by the alias “Araña,” or “the…

By – Jackie Allen
America September 30, 2026
AI Is Creating New Losses Faster…

What Policyholders Need to Know Deepfakes and misinformation dominate reported…

By – Samuel Lopez
America September 30, 2026
Public Interest Group Sues OpenAi Over…

What the Filing Puts on the Table LASST accuses OpenAI…

By – Samuel Lopez
America September 29, 2026
Anthropic IPO Warning Draws Eerie Parallel…

What the AI Warnings Are Really Telling Us Advanced AI…

By – Samuel Lopez
America September 29, 2026
Anthropic Warns Investors Its Own AI…

Inside the Risk Warning Anthropic’s IPO filing puts extinction-level language…

By – Samuel Lopez
America September 29, 2026
Trump Launches America.gov AI Portal That…

What Americans Need to Know gov is now an AI-powered…

By – Samuel Lopez
America September 29, 2026
Could Trump’s Greenland Security Deal Become…

A new Arctic agreement raises a provocative question about whether…

By – Samuel Lopez
America September 28, 2026
Pope Leo XIV Condemns France’s New…

What Readers Should Know Pope Leo XIV used his visit…

By – Samuel Lopez
America September 27, 2026
Strangers Collected $30 Million In ‘Illegal…

What You Need to Know 1. George A. Neukom Jr.’s estate…

By – Samuel Lopez
America September 26, 2026
Princess Diaries Star Heather Matarazzo Says…

WHY THIS MATTERS Heather Matarazzo just admitted something most working…

By – Samuel Lopez
America September 24, 2026
California’s $11 Billion Undocumented Immigrant Benefits…

By Samuel López | USA Herald SACRAMENTO – California is…

By – Samuel Lopez
America September 22, 2026
Hayden Panettiere’s Cause of Death Confirms…

What the Toxicology Findings Tell Us Hayden Panettiere’s death has…

By – Samuel Lopez
America September 22, 2026
Clavicular Charged With Rape In Massachusetts…

What Matters Now Braden Peters, known online as Clavicular, faces…

By – Samuel Lopez
America September 28, 2026
JJ McCarthy Trade Sends Former First-Rounder…

Two years ago, a franchise spent a top-10 pick on…

By – Tyler Brooks
America September 26, 2026
New York Sues Polymarket Claiming Prediction…

What This Fight Is Really About New York says Polymarket…

By – Samuel Lopez
America September 24, 2026
New York Sues Polymarket Over Alleged…

What’s Riding on the Bet New York says Polymarket’s sports…

By – Samuel Lopez
America September 23, 2026
Roblox widow alleges $6 million scam,…

The Roblox widow says a former companion took $6 million…

By – Jackie Allen
America September 22, 2026
Network Traffic Challenges May be Reshaped…

Network traffic has traditionally moved in one dominant direction: from…

By – Jackie Allen
America September 21, 2026
Gilbert Goons Defendant Arrested Again for…

A Gilbert Goons defendant awaiting trial in the 2023 death…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter