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Avenatti Indictment(s) YES TWO SEPARATE INDICTMENTS

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Posted on March 25 2019

 

I offer no opinion, link to the 11 page Federal Indictment regarding the SDNY Nike $20M (alledged) Extortion found here here.

From the 11 page SDNY indictment:

 

“devised a scheme to extort a company by means of an interstate communication by threatening to damage the company's reputation if the company did not agree to make multi-million dollar payments to Avenatti and [co-conspirator], and further agree to pay an additional $1.5 million to a client of Avenatti's”

 

In a separate  case out of Los Angeles, Avenatti is accused of embezzlement of his client's money "in order to pay his own expense and debts."

See DOJ-OPA CDCA AUSA press release found here.

 

Federal law enforcement officials will provide details concerning today’s arrest of lawyer Michael Avenatti, who faces federal charges of wire fraud and bank fraud in the Central District of California.

 

Again I offer NO opinion this is informational. See the CDCA AUSA’s 197 Complaint found here. Which reads in part:

criminal complaint in this case, Avenatti negotiated a settlement which called for $1.6 million in settlement money to be paid on January 10, 2018, but then gave the client a bogus settlement agreement with a false payment date of March 10, 2018. The affidavit states that Avenatti misappropriated his client’s settlement money and used it to pay expenses for his coffee business, Global Baristas US LLC, which operated Tully’s Coffee stores in California and Washington state, as well as for his own expenses. When the fake March 2018 deadline passed and the client asked where the money was, Avenatti continued to conceal that the payment had already been received, court documents said.

The DOJ OPA release goes on to say:

Avenatti also allegedly defrauded a bank in Mississippi by submitting to the lender false tax returns in order to obtain three loans totaling $4.1 million for his law firm and coffee business in 2014. According to the affidavit, Avenatti obtained the loans by submitting fabricated individual income tax returns (Forms 1040) for 2011, 2012, and 2013, reporting substantial income even though he had never filed any such returns with the Internal Revenue Service. The phony returns stated that he earned $4,562,881 in adjusted gross income in 2011, $5,423,099 in 2012, and $4,082,803 in 2013, according to the affidavit. Avenatti allegedly also claimed he paid $1.6 million in estimated tax payments to the IRS in 2012 and paid $1.25 million in 2013. In reality, Avenatti never filed personal income tax returns for 2011, 2012 and 2013 and did not make any estimated tax payments in 2012 and 2013. Instead of the millions of dollars he claimed to have paid in taxes, Avenatti still owed the IRS $850,438 in unpaid personal income tax plus interest and penalties for the tax years 2009 and 2010, court papers state. The affidavit also alleges that, as part of his loan applications, Avenatti also submitted a fictitious partnership tax return for his law firm.

 To ensue the authenticity of the CDCA AUSA Criminal Indictment Of Avenatti 

 

 

 

Again I offer no opinion this is strictly informational. However DO NOT get it twisted 

 

THERE ARE TWO SEPARATE INDICTMENTS

In my opinion the SDNY Indictment isn’t where the action is, it’s in CDCA AUSA with the assistance of the Internal Revenue Service - Criminal Investigation. Notice the date? Yes March 22, 2019 

 

 

On Count One: 18 USC §1344 (1) Bank Fraud 

There are several elements that the Government needs to prove beyond reasonable doubt:

(1) defendant knowingly carried out a scheme or plan to obtain money or property from the {insert Fiancial Institution) by making false statements or promises; (2) the defendant knew that the statements or promises were false, (3) the statements or promises were material; that is, they had a natural tendency to influence, or were capable of influencing, a financial institution to part with money or property; (4), the defendant acted with the intent to defraud; and (5) the financial institution is both federally chartered and insured

 

Count Two: 18 USC §1343 wire fraud. The disclosure of $1.6 million sent from the Silicon Valley Bank to Avenatti’s City National Bank into his trust account is, interesting.

Similarly wire fraud has multiple elements, according to the Department of Justive United States Attorneys Manual (UAM), CRM941, there are four essential elements, which reads in part:

The elements of wire fraud under Section 1343 directly parallel those of the mail fraud statute, but require the use of an interstate telephone call or electronic communication made in furtherance of the scheme

elements of the crime of wire fraud are: (1) that the defendant voluntarily and intentionally devised or participated in a scheme to defraud another out of money; (2) that the defendant did so with the intent to defraud; (3) that it was reasonably foreseeable that interstate wire communications would be used; and (4) that interstate wire communications were in fact used

 

 

I pulled out one interesting bit from the CDCA Indictment, specifically they IRS-CI’s affidavit...the IRS-CI Special Agent obtained a search warrant to search seven digital devices “that were in the custody of IRS-CI...”

 

🌶SpicyFiles Sidebar🌶 hey does anyone remember WHAT HAPPENED ON FEBRUARY 22, 2019? -cough Fry Indictment, -cough I was permanently banned on Twitter...I’m sure it’s a random coincidence that the very day I dissected the Fry indictment my account was nuked and Avenatti came at me, I am certain there’s zero connection  (see disjointed twitter thread Archive)

 

 

Oh and before I forget yes there are two separate indictments, based on my experience prosecutors most likely ran a “de-confliction” search. Meaning both SDNY and CDCA probably called each other just to ensure there wouldn’t be a cross over of streams. By all appearances the CDCA case was the one that has a ton of investigation and was/is much larger in scope. Whereas the SDNY case appears to have started in late February 2019.

Meaning my educated guess is the SDNY prosecutors probably entered Avenatti’s name and they got a hit (CDCA IRS-CI Case) which means prosecutors probably talked and realized there wasn’t a “conflict”. Notwithstanding  they likely needed to coordinate. As in they would  unseal both indictments within minutes of each other. At least that’s what my personal experience has taught me. Hope that makes sense. I’m running in to a work meeting so I’m pausing this entry until after work (ETA 7PM-ish)...-SpicyFiles Out

 

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2 comments

  • PilatesQueen: March 26, 2019

    This is when I miss the multiple Spicy tweets on this general topic. This should surprise no one based on past behavior as laid out in court records.

  • Karen McGlynn: March 26, 2019

    Are we sure Michael doesn’t work for trump 🤔

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