According to Fox News, “Avenatti allegedly drained a $4 million settlement he negotiated in 2015 on behalf of Geoffrey Johnson, who was paralyzed after trying to kill himself in the Los Angeles County jail, the indictment said.”
Out of the reported $4 million settlement Johnson was awarded, the former inmate collected only $124,000. Sources say that he funneled $2.5 million of that money to the purchase of a private jet plane.
"Avenatti faces 10 counts of wire fraud for stealing from a paraplegic man and four other clients he allegedly deceived by taking their money and using it to fund a lifestyle that included living in multimillion-dollar homes, flying in a private jet and sponsoring an auto racing team, authorities said."
Breaking news: feds have seized that plane.
“Federal authorities have seized a jet co-owned by Mr. Avenatti pursuant to a seizure warrant issued by a federal judge. This seizure is related to the pending criminal case in Los Angeles,” a federal official told Fox News.
Avenatti also faces 19 tax counts, including lying to the IRS, filing phony tax returns, keeping employee contributed tax money, and not paying his personal taxes for nearly a decade.
Avenatti responded to the charges by denying them all.
"I intend to fully fight all charges and plead NOT GUILTY. I look forward to the entire truth being known as opposed to a one-sided version meant to sideline me."
According to the indictments, “Avenatti embezzled settlement funds and proceeds from other matters he handled from five clients and doled out small portions of what they were due to ‘lull’ them into thinking they were getting what they were owed, prosecutors said.”
"Avenatti made a name for himself after representing porn star ‘Stormy’ Daniels when she sued Trump in March 2018, claiming that Trump paid her hush money ahead of the 2016 election over an alleged 2006 tryst.”
The president has repeatedly denied the charges.