Feds: Michael Avenatti 'Diverted' Money Owed to Former Client Stormy Daniels

Feds: Michael Avenatti 'Diverted' Money Owed to Former Client Stormy Daniels

NEW YORK — Federal prosecutors in New York City have filed charges against attorney Michael Avenatti for diverting money from a book deal negotiated for an unnamed former client, whom several reports have identified as adult performer Stormy Daniels.

Avenatti quickly rose to prominence as Daniels’ attorney in a number of suits and countersuits concerning her sexual relationship with businessman and TV personality Donald Trump several years before he became U.S. President, and what she and the lawyer alleged were attempts at silencing her.

Avenatti also acted until recently as a spokesperson of sorts for the award-winning adult star and director.

According to the Washington Post, “Federal prosecutors in New York City say Avenatti used a doctored document to divert about $300,000 that Daniels was supposed to get from a book deal, then used the money for personal and business expenses. Only half of that money was paid back, prosecutors said.”

“Daniels isn’t named in the court filing,” the Post added, “but the details of the case, including the date her book was released, make it clear that she is the client involved.”

“No monies relating to Ms. Daniels were ever misappropriated or mishandled,” Avenatti responded via Twitter today. “She received millions of dollars worth of legal services and we spent huge sums in expenses. She directly paid only $100.00 for all that she received. I look forward to a jury hearing the evidence.”

Last November, Daniels released a statement distancing herself from her attorney. “For months I’ve asked Michael Avenatti to give me accounting information about the fund my supporters so generously donated to for my safety and legal defense,” she wrote. “He has repeatedly ignored those requests. Days ago I demanded again, repeatedly, that he tell me how the money was being spent and how much was left. Instead of answering me, without my permission or even my knowledge Michael launched another crowdfunding campaign to raise money on my behalf. I learned about it on Twitter.”

On March 12, Daniels parted ways with Avenatti, announcing via Twitter that she had "retained Clark Brewster as my personal lawyer and have asked him and his firm to review all legal matters involving me. Upon completion of Mr. Brewster's review and further consultation with me, I anticipate Mr. Brewster will serve as my primary counsel on all legal issues.”

Today’s charges are the latest in a series of allegations against the media-hungry New York lawyer, who had once become an improbable word-of-mouth 2020 presidential candidate choice for some in the anti-Trump movement.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Ofcom: Age Assurance Going Live Across 'Thousands' of Porn Sites

U.K. communications regulator Ofcom said in a statement Thursday that providers of online pornography are implementing age assurance across “thousands of sites” accessible in the U.K., in response to Ofcom’s Online Safety Act (OSA) enforcement program.

Age Verification Watch: Patching the Holes

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Ofcom Fines OnlyFans Parent Company Over Inaccurate Age Verification Reporting

U.K. communications regulator Ofcom has fined OnlyFans parent company Fenix International Ltd. $1.36 million for inaccurate reporting of its age verification measures.

Irish Government Releases Report on Sex Work Decriminalization Legislation

The Irish government has released a report reviewing a 2017 law that decriminalized sex work across the country.

Texas Bill Would Require Age Verification for Online Sex Toy Sales

A new bill in the Texas state legislature would require online retailers to implement age verification of purchasers before selling “obscene devices” to anyone in that state.

Age Verification Watch: Michigan Joins the AV Club, Some Laws Just Make No Sense

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Free Speech Groups Back SCOTUS Appeal of Georgia Strip Club Tax

Two civil liberties organizations filed an amicus brief Tuesday supporting a petition asking the U.S. Supreme Court to hear an appeal in a case involving whether a tax specifically aimed at adult entertainment establishments violates the First Amendment.

Swedish Court Rules LELO Products Do Not Infringe 'Invalid' Satisfyer Patent

A Swedish district court has ruled that a patent filed by Satisfyer parent company EIS GmbH is not valid, and therefore three products from pleasure brand LELO are not in violation.

North Dakota House Committee Questions Anti-Porn 'Public Health Hazard' Claim

The North Dakota House of Representatives Education Committee on Monday amended a resolution that would have recognized pornography as a “public health hazard,” instead replacing that language with a call for further study into whether such a designation is appropriate.

Wyoming Governor Signs Age Verification Law

Wyoming Governor Mark Gordon signed the state's new age verification bill into law yesterday.

Show More