Mistrial on Avenatti’s Embezzlement Case is Now in The Eyes of Many

Meta Tag: A judge concluded based on technicalities that federal prosecutors failed to turn over relevant evidence against Michael Avenatti over its embezzlement case. 

Lawyer Michael Avenatti’s embezzlement case in which he was accused of stealing almost $10 million in settlement funds from his clients, was declared a mistrial by a federal judge in the state of California. Judge James Selna, a U.S Orange County District judge stated that federal prosecutors failed to disclose information relative to a law firm server that included a database that records costs and expenses in connection with cases. 

After Avenatti raised the issue last week, the judge agreed that the information should have been disclosed and declare a mistrial. And the failure of prosecutors to disclose the information was a blunder, finding no misconduct or malice. The counsel for Avenatti did not quickly comment but sure the lawyer celebrated the news outside the conference room.

As Michael Avenatti states, “This has been an incredibly difficult journey for my family, for my children, for my friends, and lastly, for me. I am extremely thankful to Mr. Steward, Ms. Cummings Cefali, and our entire team for standing by me and advocating tirelessly on my behalf.” He also stated that that day is a great day for the rule of law in the United States of America. 

Accordingly, a hearing is scheduled for September. Prosecutors contend that from the years 2015 to 2019, Avenatti stole approximately $10 million in settlement funds from several clients like Alexis Gardner, Michelle Phan, Geoffrey Johnson, Long Tran, and Gregory Barela.

To add to those allegations, Avenatti is facing charges of tax and bank fraud, and bankruptcy in California. Later this year, it is anticipated that these counts will be tried. That is after the judge split a 36-count indictment into two trials.

Not only that but he is also accused of defrauding a former film actress that goes by the name Stormy Daniels. It was said that Daniels had an extramarital affair with former President Donald Trump several years ago. The complaint alleges that Daniels was expected to obtain two (2) payments of $148,750 but Avenatti instead possesses the money sent to funds he managed. Public prosecutors accused him of spending the said money sparingly, including purchases on luxury cars such as Ferrari. Hence, the lawyer pleaded not guilty.

Further, in July, Avenatti was sentenced to 2 12 in prison in an extortion case involving Nike. It was found out by the federal investigators that the lawyer was representing a youth basketball coach in Los Angeles who claimed to know information that Nike employees came up with illegal discreet payments to top high school basketball players. The lawyer then threatened to destroy the reputation of Nike as well as its stock price unless the latter will pay him millions of dollars. 

Another hearing was set this September and the Judge scheduled a new trial set tentatively on October 12. It was only the second trial in previous months for the lawyer. 

Published by The Apartment Queen

Kaylee McMahon “The Apartment Queen” Founder of The Apartment QueenTM Founder of SheVest APP Founder of Property ManagementAI Founder of ReByKaylee LLC Residential Real Estate Brokerage -General partner/Key Principle of a 47.5 MM Assets Under Management Texas, 17.1 MM Assets Under Management Phoenix Arizona -General Partner and Key Principal Century Tree Apartments -General partner, Lead investor and Key Principal The Aspens Apartments -General partner The Meadows Apartments -General partner and Key principle in Village on University Apartments Denton Texas -General Partner Los Parados Apartments Houston Texas -General Partner The The Flats at 2030 in Phx AZ -Lead investor and Key Principle in Leuda May Apartments Fort Worth Texas Education •Bachelor’s Degree in Molecular and Experimental Nutrition Texas A&M University •Licensed Real Estate Brokerage owner in the State of Texas Kaylee has purchased over 64 million in multifamily real estate as General partner and principle. She sold over 3 million dollars in residential real estate before transitioning into her current full time syndication role. Originally from Portland Oregon, She founded the Women Who Invest Wednesday networking group in Dallas, which is also digital, and a podcast called #1 leading ladies. She interviews kick-ass women who are disrupting their industry and the REAL story of how they got where they are. She is developing technology to help make it easy and convenient for women to learn how to make passive income through apartment investing-the Shevest app. Kaylee has done home flipping, note buying, active / passive investing in apartments, and sometimes is her own lender as she feels that to be truly confident in giving advice, one should NEVER take advice from someone who has never gone through these things themselves. Kaylee has completed hundreds of hours continuing education in real estate. In addition, she is always learning about multifamily business models to get her and her partners the best return on investment. The entire backbone of what gets Kaylee out of bed everyday is her “why”. At a 30,000 foot view it is to create financial independence and space for those experiencing codependency and toxic relationships which hamper their ability to visualize and then manifest what their amazing reality could be. Her company culture models this why and is “Changing the face of multifamily” to bring more women into the light as powerhouse operators, key principles, and limited partners. We will create 1 billion more female SheVestors and “givers” by 2030.

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