Feds: Michael Avenatti 'Diverted' Money Owed to Former Client Stormy Daniels

Feds: Michael Avenatti 'Diverted' Money Owed to Former Client Stormy Daniels

NEW YORK — Federal prosecutors in New York City have filed charges against attorney Michael Avenatti for diverting money from a book deal negotiated for an unnamed former client, whom several reports have identified as adult performer Stormy Daniels.

Avenatti quickly rose to prominence as Daniels’ attorney in a number of suits and countersuits concerning her sexual relationship with businessman and TV personality Donald Trump several years before he became U.S. President, and what she and the lawyer alleged were attempts at silencing her.

Avenatti also acted until recently as a spokesperson of sorts for the award-winning adult star and director.

According to the Washington Post, “Federal prosecutors in New York City say Avenatti used a doctored document to divert about $300,000 that Daniels was supposed to get from a book deal, then used the money for personal and business expenses. Only half of that money was paid back, prosecutors said.”

“Daniels isn’t named in the court filing,” the Post added, “but the details of the case, including the date her book was released, make it clear that she is the client involved.”

“No monies relating to Ms. Daniels were ever misappropriated or mishandled,” Avenatti responded via Twitter today. “She received millions of dollars worth of legal services and we spent huge sums in expenses. She directly paid only $100.00 for all that she received. I look forward to a jury hearing the evidence.”

Last November, Daniels released a statement distancing herself from her attorney. “For months I’ve asked Michael Avenatti to give me accounting information about the fund my supporters so generously donated to for my safety and legal defense,” she wrote. “He has repeatedly ignored those requests. Days ago I demanded again, repeatedly, that he tell me how the money was being spent and how much was left. Instead of answering me, without my permission or even my knowledge Michael launched another crowdfunding campaign to raise money on my behalf. I learned about it on Twitter.”

On March 12, Daniels parted ways with Avenatti, announcing via Twitter that she had "retained Clark Brewster as my personal lawyer and have asked him and his firm to review all legal matters involving me. Upon completion of Mr. Brewster's review and further consultation with me, I anticipate Mr. Brewster will serve as my primary counsel on all legal issues.”

Today’s charges are the latest in a series of allegations against the media-hungry New York lawyer, who had once become an improbable word-of-mouth 2020 presidential candidate choice for some in the anti-Trump movement.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Brazil Invites Public Input on AV Guidelines

Brazil’s National Data Protection Authority (ANPD) on Friday launched a public consultation on developing guidelines for age verification mechanisms under the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Senator Urges DOJ to Crack Down on 'Obscenity,' Attacks OnlyFans

U.S. Senator Jim Banks of Indiana this week urged Acting Attorney General Todd Blanche to reestablish the Department of Justice’s defunct Obscenity Prosecution Task Force in a letter that targets OnlyFans while repeatedly conflating “obscenity” with legal adult content.

UN Experts Urge US, Canada to Prosecute Aylo, Others for 'Exploitation'

GENEVA – The United Nations Office of the High Commissioner for Human Rights (OHCHR) has issued a press release in which two U.N. special rapporteurs, cited as experts, accuse Aylo and other companies of complicity in sexual exploitation.

Tennessee Governor Signs Bill Requiring Warnings on Adult Stores

Governor Bill Lee on Tuesday signed into law a bill requiring adult stores, theaters and other establishments in Tennessee to post warning signs cautioning patrons that they “may be contributing” to sexual assault and human trafficking.

Kickstarter Revokes New Rules Banning Fundraising for Adult Content, Products

Crowdfunding platform Kickstarter announced Tuesday that it has reversed its recent decision to impose new “Mature Content” rules banning projects that involve adult content and sextech.

Report: Irish Justice Minister Seeks UK-Style Ban on 'Extreme' Content

Ireland’s justice minister plans to introduce legislation criminalizing possession and distribution of “extreme” pornography, according to a report by the Irish Independent.

WebGroup Czech Republic Settles Florida AV Suit, Will Pay $1.2 Million

WebGroup Czech Republic (WGCZ), the parent company of XVideos, XNXX, BangBros and GirlsGoneWild, has settled a lawsuit filed by the state of Florida over those sites’ alleged failure to age-verify Florida users before allowing access to adult content.

Ofcom Investigates Two Sites Over Possible AV Violations

U.K. media regulator Ofcom on Wednesday launched investigations into two adult sites as part of its age assurance enforcement program under the Online Safety Act (OSA).

FTC Promises 'Vigorous' TAKE IT DOWN Act Enforcement

The Federal Trade Commission is warning platforms that the agency will strongly enforce the notice-and-removal requirements of the TAKE IT DOWN Act, which go into effect next week on May 19.

Court of International Trade Rejects Trump 'Replacement' Tariffs

The U.S. Court of International Trade on Thursday ruled that President Trump’s 10% global tariff under the Trade Act of 1974, imposed after the Supreme Court invalidated the administration’s broad “Liberation Day” tariff regime, is illegal — but stopped short of a nationwide injunction against the tariff.

Show More