Michael Avenatti, the disgraced attorney who once represented Stormy Daniels against Donald Trump, may see his 14-year prison sentence reduced after an appeals court ruling.
At a Glance
- Federal appeals court orders resentencing for Michael Avenatti’s fraud and tax crimes
- Original 14-year sentence deemed flawed due to errors in calculation
- Avenatti’s sentence could potentially be reduced by half
- Case highlights ongoing debate about white-collar crime sentencing standards
Appeals Court Finds Flaws in Original Sentence
A federal appeals court has ordered a new sentencing hearing for Michael Avenatti, the former celebrity attorney who gained notoriety for his attacks on President Trump before being exposed for defrauding his own clients. The court found significant errors in the calculation of Avenatti’s original 14-year sentence for stealing millions from vulnerable clients and committing tax crimes.
The three-judge panel unanimously ruled that U.S. District Judge James V. Selna erred by not considering the value of Avenatti’s legal services to his victims and improperly increased the punishment based on obstruction of justice and perjury claims. This decision has reignited the debate surrounding white-collar crime sentencing standards and accountability within the legal system.
Federal appeals court orders a new sentence for former Stormy Daniels' attorney Michael Avenatti https://t.co/INlT0kM6vw
— Just the News (@JustTheNews) October 24, 2024
Scope of Avenatti’s Crimes and Impact on Sentencing
Avenatti’s fall from grace was swift and dramatic. He pleaded guilty to four counts of wire fraud and one tax charge in 2022 without a plea deal. The disgraced lawyer was accused of stealing millions from four clients, including a paraplegic man, and using the funds to support his luxurious lifestyle.
“Selna erred. Forfeiture is a sanction that does not approximate the pecuniary harm caused by an attorney’s misconduct. It has no place in calculating ‘actual loss’ for the purposes of enhancing a criminal defendant’s sentence. Further, Avenatti’s clients were never entitled to receive the full settlement values — they hired Avenatti on a contingency fee basis and agreed, by contract, to pay him a portion of any settlement as his fees and to reimburse him for his costs.” – Appellate judges
The appeals court’s decision highlights the complexities involved in sentencing white-collar criminals. The judges disagreed with Judge Selna’s calculation of $12.3 million in losses due to fraud, ruling that Avenatti should receive credit for legal fees, expenses, and payments made to clients. This recalculation could potentially lead to a significant reduction in Avenatti’s sentence.
Appeals court tosses sentence for anti-Trump lawyer Michael Avenatti https://t.co/gbSkl8ZqdK
— The Washington Times (@WashTimes) October 23, 2024
Legal Implications and Future Proceedings
The case has now been sent back to Judge Selna for reconsideration. The appeals court has directed Selna to reassess the value of Avenatti’s legal services and to make explicit findings on obstruction of justice elements related to perjury and tax violations. This resentencing process could potentially reduce Avenatti’s prison term by half.
“Mr. Avenatti is encouraged by the decision today by the 9th Circuit. He looks forward to full due process and a complete hearing on the issues, as ordered by the Circuit Court.” – Avenatti’s attorney, H. Dean Steward
The resentencing will also consider whether Avenatti’s sentences for identity theft and his attempted extortion of Nike should run concurrently with the new sentence. This decision could have far-reaching implications for how future white-collar crime cases are sentenced, potentially setting new precedents for calculating losses and considering the value of services provided by defendants.
As the legal community awaits the outcome of Avenatti’s resentencing, this case serves as a reminder of the complexities involved in prosecuting and punishing white-collar crimes. It also raises important questions about accountability in our justice system and the appropriate balance between punishment and consideration of mitigating factors in complex financial cases.
Sources:
- Appeals court orders re-sentencing for suspended attorney Michael Avenatti, Stormy Daniels’ former lawyer
- Avenatti’s sentence for client fraud, tax violations vacated
- Federal appeals court orders a new sentence for former Stormy Daniels’ attorney Michael Avenatti
- Appeals court orders re-sentencing for suspended attorney Michael Avenatti, Stormy Daniels’ former lawyer
