A California judge declared a mistrial Tuesday in the embezzlement trial of disgraced attorney Michael Avenatti after he was accused of stealing millions in settlement money from his clients.
US District Judge James V. Selna ruled on technical grounds that federal prosecutors committed a 'Brady Violation' in failing to turn over relevant financial evidence to Avenatti.
The disgraced lawyer was already sentenced in July to 2 1/2 years in prison in a $25 million extortion case against Nike in New York.
Another hearing in the case was set for September 2, and Selna scheduled a tentative new trial date for October 12.
Avenatti, who shot to fame representing pornographic actress Stormy Daniels in her lawsuit against ex-President Donald Trump, became a media darling and appeared on CNN numerous times criticizing the former president.
Federal prosecutors in Southern California have accused Avenatti of cheating five of his clients out of nearly $10 million by negotiating and collecting settlements on their behalf and funneling the payments to accounts he controlled while lying to them about what happened to the money.
Avenatti's case was declared a mistrial on technical grounds by a Southern California judge
It's the second trial in recent months for the disgraced lawyer, who was sentenced to more than two years in prison by a New York court
Avenatti, is suspended from practicing law in California but was representing himself at the trial.
He pleaded not guilty to 10 counts of wire fraud in connection with the allegations spanning from 2015 to 2019.
He denied embezzling money and said his law firm was entitled to recoup expenses if settlements were reached.
US District Judge James V. Selna cited Brady v. Maryland in making his decision
The mistrial was first reported by Law360.
Selna said he found 'no misconduct, intentional or otherwise' on federal investigators' part, according to journalist Meghann Cuniff, and seemed to chalk up their failure to produce the necessary evidence to an oversight.
But he said Avenatti 'was denied an opportunity to craft an overall theory of the case' by not having possession of material obtained by the investigation team, who work separately from prosecutors.
The justice official said the government was 'not required' to prove the exact amount they accuse Avenatti of extorting, but as the defendant he was allowed to 'challenge that number.'
The US attorney who headed the investigative team spoke with Law360 and compared the amount of data in the server they were tasked to search to searching a 'small town.'
Selna cited Supreme Court case Brady v. Maryland, which established that prosecutors must turn over all evidence that could exonerate a defendant, in making his decision.
Avenatti reportedly made a statement to reporters gathered in the court hallways and said it was 'a great day for the rule of law in the United States of America.'
Avenatti reportedly spoke with reporters briefly after his motion for a mistrial was granted
'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," reports claim Avenatti said.
It was the second trial in recent months for the 50-year-old lawyer.
He was sentenced in a Manhattan federal court after issuing a tearful and groveling apology to the judge as he decried his fame, saying 'TV and Twitter mean nothing'.
He is due to serve the 2 1/2 year sentence before three years of supervised release. Avenatti, who has been under house arrest, was not remanded in custody and will start his prison sentence at a later date.
He was convicted by a jury a year ago of trying to extort Nike by threatening to use his media access to hurt the brand's reputation and stock price when he represented a Los Angeles youth basketball league organizer upset the company had ended its league sponsorship.
Avenatti was accused of threatening to expose allegations Nike was funneling payments to college basketball players unless the company paid him millions of dollars to conduct an internal investigation.
Daniels, who Avenatti is charged in a separate case with cheating her out of $300,000, said she 'can't wait' for him to face trial again.
Can't wait! Especially since his idiot attorney tried to use my job on a paranormal show and "witchcraft" as reason to dismiss my evidence. Can you say discrimination? I'm so excited about finally getting my chance at him,' Daniels said after the July hearing.
Avenatti previously represented Stormy Daniels in a lawsuit against Donald Trump
Prior to his sentencing, Avenatti told the court he had 'betrayed' his profession and was 'deeply sorry' for the pain he had caused.
'I betrayed my profession. I became driven by the things that don't matter in life. Over the last two years I have often to myself, why did this need to happen?' he said.
'I've learned all the fame, notoriety and money in world is meaningless. TV and Twitter mean nothing. Everyone wants to ride in a limo with you but very few are willing to sit next to you on the bus... even fewer are willing to take your calls from prison.
'Despite the deep shame and remorse, I still feel positive because I can do better.'
Avenatti teared up as he said: 'I look forward to working hard to become the person I once was. I will, if given a chance. But I know I will never have the privilege of practicing law again.
'I, and I alone, have destroyed my career, my relationships, my life. There is no doubt I deserve to pay, have paid and will further pay for what I have done.
'Someone asked me what I want my three kids to think of me. I want mine to be ashamed because if they're ashamed it means their moral compass is exactly where it should be.'
Post a Comment