MANHATTAN (CN) — Michael Avenatti needs to face a hefty punishment for trying to extort millions of dollars from Nike, prosecutors urged a federal judge Wednesday night.
“The defendant, a prominent attorney and media personality with a large public following, betrayed his client and sought to enrich himself by weaponizing his public profile in an attempt to extort a publicly-traded company out of tens of millions of dollars,” the sentencing memo states. “This was an egregious abuse of trust, and it warrants real and serious punishment.”
Though it is calling for "a very substantial sentence," the government notes agreement with the probation office that a below-guidelines sentence would be sufficient. Probation officials are recommending an eight-year sentence, while the guidelines could put him away for 11 years minimum.
Avenatti was found guilty in February 2020 after Nike reported that he had threatened to go public with damaging information about the company unless Nike gave him over $1.5 million and hired him and co-counsel Mark Geragos to conduct an internal investigation with a retainer fee between $15 million and $25 million.
“It’s worth more in exposure for me to just blow the lid on this thing,” Avenatti told attorneys for Nike on tape. “A few million dollars doesn’t move the needle with me.”
Avenatti at the time had become a recognizable face through his representation of porn star Stormy Daniels in her suit against then-President Donald Trump.
The lawyer got in touch with Nike while representing another client, amateur basketball coach Gary Franklin, who testified that he thought Avenatti’s talent with getting media attention would be asset in his case against Nike.
Franklin, who runs a youth basketball club that Nike sponsored, went to Avenatti and told him that Nike executives asked him to falsify invoices, make sketchy wire payments and pay $10,000 in cash to the mother of Deandre Ayton, a former Supreme player who became the top pick in the 2018 NBA draft.
Franklin said he had no idea Avenatti would take that information and try to extort Nike. He was a witness for the government at trial and notes in a victim impact statement that his life is upside down today thanks to Avenatti.
“Because of Mr. Avenatti’s actions, this ‘scandal’ is the first result when you Google my name,” the letter states. “Not the hundreds of kids I’ve helped mentor and get into college. Not the families whose lives I’ve helped change, or the great relationships or the great work of our non-profit. All of my other achievement, all of the students I’ve helped, are overshadowed by Mr. Avenatti’s greed.”
Earlier this month Avenatti requested a sentence of six months along with a yearlong house arrest, arguing this is his first offense and that no one lost any money.
“Thus, while we recognize that the offenses require punishment, the length of incarceration should be dictated by reason and fairness, and by reference to similar sentences in non-violent ‘economic extortion’ cases that caused no identifiable financial loss,” defense attorneys Scott Srebnick and E. Danya Perry wrote for Avenatti.
Prosecutors vehemently disagree with this request Wednesday, arguing that Avenatti “knowingly and deliberately” hurt Franklin and that Nike is owed restitution for its attorney fees.
Additionally, prosecutors argue that such a short sentence would send the wrong message to the public and would not recognize the seriousness of the situation.
In a victim statement filed Wednesday night, Nike says the damage this has caused will never be fully fixed.
“Although the government’s successful prosecution of Mr. Avenatti will lessen his credibility to past and future audiences, it is impossible to restore completely the reputational harm he has caused,” attorneys Peter Skinner and David Simon with Boies Schiller wrote for the sporting goods giant.
Nike echoed the call by prosecutors for Avenatti to face a serious sentence.
“Nike respectfully submits that a significant sentence is warranted to reflect the substantial harm Mr. Avenatti caused Nike and its shareholders by criminally weaponizing his law degree,” its statement says.
Avenatti is set to be sentenced on June 30.
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