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 Sets Enforcement Timeline for New AV Rules

Brazil’s National Data Protection Authority (ANPD) on Friday published a timeline outlining planned steps for monitoring and enforcing age verification under the country’s Digital Statute for Children and Adolescents (Digital ECA), which took effect Tuesday.

Utah Governor Signs 'Porn Tax' and VPN Rule Into Law

Governor Spencer Cox on Friday signed into law a bill to tax adult websites and make them liable if minors circumvent geolocation.

German Court: Regulator Can't Block Creator's IG Account, Only Posts

A German court has ruled that while a regional media regulatory agency may block specific Instagram posts that include material deemed harmful to minors, it cannot ban an entire Instagram account due to such a post.

Brazil Lays Out Preliminary Guidelines for New AV Requirements

President Luiz Inácio Lula da Silva on Wednesday signed a decree establishing guidelines for new regulations requiring adult websites to age-verify users located in Brazil.

Senate Committee Debates Section 230 Reform

The U.S. Senate Committee on Commerce, Science, and Transportation held a hearing Wednesday on potential changes to Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

FTC Invites Public Comment on 'Click to Cancel' Rulemaking

The Federal Trade Commission (FTC) announced this week that it is seeking public comment on whether it should amend its Negative Option Rule to better address deceptive or unfair practices.

Aylo Rebuts Indiana AV Suit Claims Over VPN Access

Aylo this week asked a Marion Superior Court judge to dismiss Indiana’s lawsuit alleging that the company violated the state’s age verification law by failing to prevent access by users who employ VPNs and similar means to avoid geolocation.

Kansas Plaintiff Drops Chaturbate AV Suit, Revamps SuperPorn Complaint

The plaintiff in a lawsuit alleging that cam platform Chaturbate violated Kansas’ age verification law has voluntarily dismissed that action, while retooling a similar complaint against adult site SuperPorn.

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Show More