Court Reconsiders Avenatti’s Sentence: What’s Next in Fraud Case?

Empty courtroom jury seats with wood paneling.

The federal appeals court has revisited the sentencing of former lawyer Michael Avenatti, opening new questions about the future of his legal punishment.

At a Glance

  • A federal appeals court ordered a new sentencing for Avenatti, questioning the previous 14-year term.
  • Avenatti’s appeals highlighted the imbalance in assessing his perjury enhancement.
  • The trial court will reconsider if sentences for identity theft and extortion should run concurrently.
  • Michael Avenatti gained fame representing Stormy Daniels against Donald Trump.

Federal Appeals Court Orders New Sentencing

A federal appeals court has issued a directive for a trial court to re-sentence Michael Avenatti, who originally received a 14-year sentence for defrauding clients and tax violations. His conviction included stealing settlement payments meant for his clients, which authorities claim funded his opulent lifestyle.

The appeals court questioned the trial court’s focus on a perjury enhancement. In response, Avenatti expressed gratitude, describing his original sentence as unjust. The case, sent back to United States District Judge James V. Selna, highlights the need for a comprehensive re-evaluation of Avenatti’s misconduct and subsequent penalties.

Avenatti’s Legal Journey

In 2022, Michael Avenatti pleaded guilty to multiple charges, including four counts of wire fraud and one tax-related offense. His fame initially spiked when he represented Stormy Daniels in her lawsuit against former President Donald Trump. Despite his legal battles, Avenatti insists that due process must take precedence over personal biases against him.

“I am thankful that a UNANIMOUS three judge panel of the 9th Circuit threw out my draconian prison sentence today…” – Michael Avenatti

Avenatti’s past convictions for aggravated identity theft and attempting to extort Nike will also be considered in the new sentencing process. His lawyer, H. Dean Steward, remains optimistic about a complete hearing, anticipating a legal setting that acknowledges constitutional rights and a fair evaluation of Avenatti’s past actions.

Appeal Court’s Assessment

The appellate judges found inconsistencies in the original sentencing approach. Federal prosecutors had initially sought a 17.5-year sentence, while Avenatti argued for concurrent six-year sentences. The panel highlighted that Judge Selna did not properly weigh the value of Avenatti’s legal services to victims. The reassessment acknowledges potential credit for fees, expenses, and payments made to clients.

“Avenatti contends that (Selna) should have accounted for the value of his legal services…” – Appellate judges

The recalibration also includes an evaluation of whether his sentences related to fraud, identity theft, and the Nike extortion should run concurrently. Judge Selna’s original calculations and loss assessments from Avenatti’s fraudulent activities that allegedly amounted to $12.3 million have also been scrutinized.

Sources

1. Avenatti’s sentence for client fraud, tax violations vacated

2. Federal appeals court orders a new sentence for former Stormy Daniels’ attorney Michael Avenatti