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

France Reinstates Age Verification Rule for EU Sites

France’s highest court, the Council of State, on Tuesday reinstated age verification rules for EU-based sites under the country’s Security and Regulation of the Digital Space (SREN) law, ruling in favor of the French government and against Hammy Media.

European Commission Approves AV Guidelines, Unveils Prototype App

The European Commission on Monday released its final, approved guidelines for protecting minors online under the EU’s Digital Services Act (DSA) and made public a “white label” age verification app intended to help sites and platforms comply with age verification rules under the DSA.

Federal Appeals Court Vacates FTC 'Click to Cancel' Rule Pending Review

The U.S. Court of Appeals for the 8th Circuit on Tuesday vacated the Federal Trade Commission’s “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions, pending further review.

NYC Adult Stores Lose Challenge to Zoning Law, May Face Relocation

The U.S. Court of Appeals for the 2nd Circuit on Tuesday upheld a lower court’s decision to allow enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

FSC Drops Florida AV Lawsuit in Wake of SCOTUS Decision

A U.S. district court judge granted on Tuesday a motion by Free Speech Coalition to dismiss the trade association’s lawsuit over Florida’s age verification law, a case that had been on hold pending the Supreme Court’s recent ruling on the constitutionality of state AV laws.

Ukrainian President Responds to Porn Legalization Petition

President Volodymyr Zelensky responded Tuesday to an OnlyFans model’s petition to decriminalize pornography in Ukraine, stating that he would wait for the legislative process to play out “in accordance with established procedure.”

NC Governor Vetoes Bill Targeting Adult Industry, Override Possible

North Carolina Governor Josh Stein today vetoed a bill imposing new regulations that adult industry observers have warned could push adult websites and platforms to ban most adult creators and content.

25,000 Sign Petition to Legalize Pornography in Ukraine

An OnlyFans model’s petition to decriminalize pornography in Ukraine has amassed the 25,000 signatures required for official consideration by President Volodymyr Zelensky.

FSC Unpacks SCOTUS Age Verification Ruling in Webinar

The Free Speech Coalition conducted a public webinar Tuesday to help adult industry stakeholders understand the Supreme Court’s recent decision in FSC v. Paxton, and its potential implications.

Show More