Santa Ana, California – Michael Avenatti pleaded guilty on today to five felony offenses and admitted to engaging in a scheme to defraud four of his legal clients.
Avenatti, who has been suspended by the State Bar of California, specifically pleaded guilty to four counts of wire fraud – each related to one of four matters in which he embezzled money that should have been paid to clients – and one count of endeavoring to obstruct the administration of the Internal Revenue Code.
United States District Judge James V. Selna scheduled a sentencing hearing for September 19. As a result of today’s guilty pleas, Avenatti faces a statutory maximum sentence of 83 years in federal prison.
Avenatti admitted guilt in each of the four legal matters discussed in a federal grand jury indictment that charged him with embezzling money from clients. Avenatti admitted that he engaged in the conduct charged in the four counts of the indictment, which includes receiving money on behalf of clients into client trust accounts, misappropriating the money, and lying to the clients about receiving the money or, in one case, claiming that the money had already been sent to the client.
The charge of endeavoring to obstruct the administration of the Internal Revenue Code is one of 19 tax-related offenses in the indictment. In relation to the tax count he pleaded guilty to today, Avenatti admitted that he corruptly obstructed and impeded the IRS’s efforts to collect unpaid payroll taxes, which the government estimates amount to approximately $5 million and include payroll taxes that he been withheld from the paychecks of employees of the Avenatti-owned company that operated Tully’s Coffee.
After pleading guilty today, Avenatti still faces a total of 31 counts – six wire fraud charges, 18 tax-related charges, two counts of bank fraud related to alleged false statements he made in an attempt to obtain loans from a federally insured financial institution, one count of aggravated identity theft for misusing the name of a tax preparer in relation to the bank fraud scheme, and four counts of bankruptcy fraud related to alleged false statements he made after his law firm was forced into bankruptcy.
The government is reviewing the case to determine how it will move forward after today’s guilty pleas. In the event that the government elects to proceed on the remaining counts, Judge Selna will vacate the September 19 sentencing date.
Avenatti, a former prominent attorney, specifically pleaded guilty to the following charges:
Four counts of wire fraud (18 U.S.C. § 1343)
One count of endeavoring to obstruct the administration of the Internal Revenue Code (26 U.S.C. § 7212(a))
Avenatti’s plea agreement stipulates that he will face a sentence of up to 83 years in federal prison, with a recommended sentence of 7-10 years for the four counts of wire fraud and the single count of attempting to obstruct the internal revenue code.
Michael Avenatti, born on February 16, 1968, is a former prominent attorney and television personality. He is currently facing charges of embezzling millions of dollars from his clients.
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- Amadou Kane Diallo, Wire Fraud, California 2023 · New Jersey
- Mark Roy Anderson, Wire Fraud, California 2023 · Connecticut
- Jeffrey Harrington, Wire Fraud Conspiracy, California 2024 · North Carolina
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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