>>> MICHAEL AVENATTI, THE LAWYER WHO SHOT TO FAME AS STORMY
DANIELS’ LAWYER IN HER CASE
AGAINST THE PRESIDENT THIS
MORNING IS FACING CHARGES
HIMSELF.
HIMSELF. CHARGES THAT COULD CARRY
PENALTIES TOTALING DECADES IN
PRISON IF CONVICTED.
AS "THE NEW YORK TIMES" DETAILS,
YESTERDAY AVENATTI WALKED INTO A
MEETING WITH NIKE, A MEETING HE
BELIEVED COULD RESULT IN A
MULTIMILLION DOLLAR PAYOUT.
BUT INSTEAD, HE LEFT THE MEETING
IN FBI CUSTODY.
HE’S CHARGED WITH TRYING TO
EXTORT MORE THAN $20 MILLION
FROM NIKE, A MOVE THE U.S.
ATTORNEY FOR THE SOUTHERN
DISTRICT OF NEW YORK CALLED AN
OLD-FASHIONED SHAKEDOWN.
OLD-FASHIONED SHAKEDOWN. >> WHEN LAWYERS USE THEIR LAW
LICENSES AS WEAPONS, AS A GUISE
TO EXTORT PAYMENTS FOR
THEMSELVES, THEY ARE NO LONGER
ACTING AS ATTORNEYS, THEY ARE
ACTING AS CRIMINALS.
>> THAT’S NOT ALL.
THERE’S A SEPARATE CASE IN
CALIFORNIA.
CALIFORNIA. AVENATTI CHARGED WITH BANK AND
WIRE FRAUD THERE.
LAST NIGHT FOLLOWING HIS COURT
HEARING IN NEW YORK, AVENATTI
WEIGHED IN ON THE CHARGES SAYING
THAT DUE PROCESS WILL EXONERATE
HIM.
HIM. NBC INVESTIGATIONS REPORTER TOM
WINTER JOINS US WITH THE LATEST.
TOM, WHAT EXACTLY HAPPENED HERE?
>> YEAH, THIS WAS REALLY A --
JUST A TOTAL STUNNING CHANGE FOR
MICHAEL AVENATTI.
MICHAEL AVENATTI. HE WAS IN COURT -- I WAS IN
COURT WITH HIM LAST NIGHT.
IT WAS A LATE INITIAL APPEARANCE
FOR AVENATTI.
FOR AVENATTI. YOU SEE HIM COMING OUT THERE.
BUT, YOU KNOW, HE USED TO BE THE
LIFE OF THE COURT, CHRIS.
AND NOW HE WAS SITTING BY
HIMSELF AT HIS TABLE WITH THE
MARSHALS SITTING BEHIND HIM.
IT WAS JUST A VERY WEIRD SCENE.
WHAT HAPPENED WAS MICHAEL
AVENATTI WAS UNDER INVESTIGATION
FOR A LONG TIME OUT IN
CALIFORNIA.
CALIFORNIA. AS YOU SUGGESTED, HE FACES
CHARGES THERE.
CHARGES THERE. AND THEY WERE READY TO ARREST
HIM ON FRIDAY NIGHT.
AS A MATTER OF FACT, MY
COLLEAGUE, JULIA AINSLEY, WE
WERE GETTING WHISPERS THERE WAS
SOMETHING THAT WAS GOING TO
HAPPEN IN CALIFORNIA BUT WE
WEREN’T QUITE SURE.
THEN ALL OF A SUDDEN THAT SEEMED
TO HAVE GONE AWAY.
WE DIDN’T HEAR MUCH MORE ABOUT
IT.
IT. THIS KIND OF CAME OUT OF NOWHERE
YESTERDAY AFTERNOON.
YESTERDAY AFTERNOON. AVENATTI WAS, LIKE I SAID,
ALREADY IN TROUBLE AND THEN HE
STARTED TO BEGIN THIS EXTORTION
SCHEME WITH NIKE.
AND THEY HAVE HIM ON TAPE, THAT
MEETING THAT YOU REFERENCED
EARLIER, THEY SET UP CAMERAS AND
AUDIO EQUIPMENT IN THE ROOM
WHERE THE MEETING OCCURRED.
SO MICHAEL AVENATTI IS ON TAPE
ESSENTIALLY SAYING, LOOK, JUST
GIVE ME $22.5 MILLION AND I’LL
JUST RIDE OFF INTO THE SUNSET.
THAT’S WHAT HE ACTUALLY SAID.
SO IT NO LONGER BECOMES
ADVOCATING FOR YOUR CLIENT, IT
BECOMES JUST TRYING TO ENRICH
YOURSELF.
YOURSELF. WE KNOW AVENATTI HAS HAD
FINANCIAL ISSUES AND NOW HE’S
GOT VERY SERIOUS LEGAL ISSUES.
>> HE GOT SO FAMOUS SO FAST.
HE ACTUALLY TOYED WITH RUNNING
FOR PRESIDENT.
FOR PRESIDENT. EDWARD ISAAC DOVERE TWEETED
THIS.
THIS. LAST BRING MICHAEL AVENATTI SAT
IN A STARBUCKS ON 16th STREET
WITH ME, LOOKING FORWARD THE
WHITE HOUSE, AND TOLD ME HE HAD
ALREADY STARTED TO ENVISION
HIMSELF SITTING BEHIND THE DESK
IN THE OVAL OFFICE AS PRESIDENT.
I MEAN HE HAD SAID THAT HE
WASN’T GOING TO RUN.
SO WHAT’S NEXT FOR HIM?
WHERE DOES THIS CASE GO, THE NEW
YORK ONE?
YORK ONE? >> WHAT’S NEXT FOR HIM IS A LOT
OF TIME BEING SPENT IN A
COURTROOM AND CERTAINLY NOT IN
THE OVAL OFFICE.
HE’S GOT A TRIAL HERE IN NEW
YORK, HE’LL HAVE A TRIAL IN LOS
ANGELES.
ANGELES. AND, CHRIS, HE FACES REAL JAIL
TIME HERE.
TIME HERE. THE MAXIMUM ON THE EXTORTION
CHARGE IN NEW YORK IS 20 YEARS
ALONE.
ALONE. HE FACES SIGNIFICANT JAIL TIME
OF EQUAL OR EVEN GREATER AMOUNTS
IN CALIFORNIA.
IN CALIFORNIA. SO AS FAR AS MICHAEL AVENATTI IS
CONCERNED, HIS ONLY FOCUS IS
PROBABLY GOING TO BE ON HIS OWN
LEGAL TROUBLES.
LEGAL TROUBLES. HE NEEDS TO GET REPRESENTATION
HERE IN NEW YORK.
HE WAS REPRESENTED BY PUBLIC
DEFENDERS LAST NIGHT.
THAT’S PRIMARILY JUST BECAUSE OF
HOW QUICKLY THIS ALL CAME
TOGETHER.
TOGETHER. SO HE’LL HAVE TO HAVE ATTORNEYS
IN LOS ANGELES.
HE HAS HIS TRAVEL RESTRICTED,
HIS PASSPORTS, HIS ITALIAN AND
U.S. PASSPORT, THEY’LL HAVE TO
BE TURNED OVER.
HE HAS TO REPORT ANY FINANCIAL
TRANSACTIONS OVER $5,000
INCOMING OR OUTGOING TO ACCOUNTS
THAT HE CONTROLS.
CHRIS, HE’S GOT A LONG WAY FROM
THE WHITE HOUSE NOW.
HE’S MUCH CLOSER TO PRISON.
>> TOM, THANKS SO MUCH.
WE WANT TO TALK MORE ABOUT THIS.
FORMER U.S. ATTORNEY PAUL
CHARLESTON IS HERE ALONG WITH
CRIMINAL DEFENSE ATTORNEY ROBERT
BIANCHI.
BIANCHI. BOB, I THINK THE QUESTION FOR A
LOT OF PEOPLE IS WHEN DOES
THREATENING A LAWSUIT CROSS OVER
INTO EXTORTION.
INTO EXTORTION. >> GREAT QUESTION.
AVENATTI IS GOING TO SAY I WAS
TRYING TO ZEALOUSLY ADVOCATE FOR
A CLIENT.
A CLIENT. HE PUT HIMSELF IN A BOX WHEN HE
SAID MY CLIENT’S DAMAGES ARE
$1.6 MILLION AND I WANT TO BE
PAID FOR THAT.
BUT WHEN HE WENT TO PERSONALLY
ADVANTAGE HIMSELF BY SAYING I
NEED $15 TO $20 MILLION EITHER
TO INVESTIGATE AND WRITE A
REPORT FOR YOU OR JUST GIVE ME
$22.5 MILLION AND I’LL WALK
AWAY.
AWAY. HE HAS BROKEN THE LAW, ACCORDING
TO THE U.S. ATTORNEY, BECAUSE
HE’S NO LONGER ADVOCATING FOR A
LEGITIMATE CLAIM OF A CLIENT AS
OPPOSED TO ENRICHMENT FOR
HIMSELF.
HIMSELF. AND THESE FACTS ARE LOCKED AND
LOADED.
LOADED. THESE ARE NOT A GOOD THING FOR
HIM TO DO.
IT’S IMPROPER TO DO AS AN
ATTORNEY.
ATTORNEY. I DON’T THINK THAT YOU’RE GOING
TO FIND AN ATTORNEY IN THE WORLD
THAT’S GOING TO GET UP ON THE
WITNESS STAND FOR HIM AS AN
EXPERT TO SAY THIS IS A
LEGITIMATE EXERCISE IN PURSUING
A CLIENT’S CASE.
LAST POINT, WHAT YOU DO IS YOU
PURSUE THE CLIENT’S CASE FOR
THEIR DAMAGES AND YOU TAKE YOUR
FEE FROM THE CLIENT.
YOU DON’T EXTORT IT FROM THE
COMPANY.
COMPANY. >> SO, PAUL, THE LINE THAT
ROBERT MENTIONED AS A NONLAWYER
IS ONE, THOUGH, THAT STRUCK ME
BECAUSE HE ASKED, APPARENTLY,
REPORTEDLY, FOR THAT $22.5
MILLION HE SAID, AND THEN FULL
CONFIDENTIALITY.
CONFIDENTIALITY. WE RIDE OFF INTO THE SUNSET.
AGAINST THAT BACKDROP, IS IT AT
ALL COMMON TO SEE LAWYERS
MISTAKLY CROSS THIS LINE?
IS IT UNCLEAR WHERE THE LINE IS?
>> THE U.S. ATTORNEY’S POSITION
AND IF THESE CHARGES ARE PROVEN
TRUE, CHRIS, IS THAT THAT LINE
WAS A RED LINE AND A VERY CLEAR
LINE.
LINE. REMEMBER, THE CONTEXT HERE IN
WHICH MICHAEL AVENATTI DID THESE
ACTS AND TOOK THESE ACTIONS IS
ONE IN WHICH THE SOUTHERN
DISTRICT OF NEW YORK HAS AN
ONGOING CRIMINAL PROSECUTION
THAT RELATES TO THE SUBJECT AREA
THAT MICHAEL AVENATTI WAS
TALKING ABOUT.
TALKING ABOUT. ANOTHER CLOTHING MANUFACTURER,
OTHER SPORTS INDIVIDUALS, OTHER
NCAA INDIVIDUALS TRIED AND
CONVICTED OF CRIMES.
YOU CANNOT THREATEN A CRIMINAL
PROSECUTION TO GAIN A CIVIL
BENEFIT.
BENEFIT. THAT IS THE VERY DEFINITION OF
EXTORTION.
EXTORTION. CHRIS, YOU DON’T HAVE TO LOOK
TOO FAR IN OUR RECENT HISTORY TO
LEARN ABOUT THE SENTENCING GUIDE
LINES AND WHAT, IF AGAIN THESE
CHARGES ARE PROVEN TO BE TRUE, A
POSSIBLE CONVICTION IN THE
CENTRAL DISTRICT OF CALIFORNIA
AND A POSSIBLE CONVICTION IN THE
SOUTHERN DISTRICT OF NEW YORK
MEANS.
MEANS. THAT MEANS, AS HAPPENED WITH
PAUL MANAFORT, THAT IF MR.
AVENATTI IS FOUND GUILTY, HE MAY
BE FACING A ACCEPTSENTENCE IN
CALIFORNIA AND THEN A
CONSECUTIVE AND ADDITIONAL
ACCEPT TENSE IN THE SOUTHERN
STRICT OF NEW YORK
DISTRICT OF NEW YORK.
>> I THINK I KNOW THE ANSWER TO
THIS BUT I WANT TO MAKE SURE I’M
CLEAR ON IT, ROBERT.
AVENATTI CLAIMED THAT HE KNEW OF
NIKE EMPLOYEES WHO FUNNELED
MONEY INTO COLLEGE BASKETBALL
RECRUITS.
RECRUITS. WE’VE SEEN THIS CASE BEFORE
ELSEWHERE.
ELSEWHERE. YESTERDAY THE SDNY PROSECUTOR
SAID IF -- WE’RE NOW
INVESTIGATING THAT, RIGHT?
THEY’RE LOOKING AT THAT.
IF IT TURNS OUT THAT THAT’S
TRUE, DOES THAT HAVE ANY IMPACT
AT ALL ON WHAT HAPPENS TO
AVENATTI?
AVENATTI? IF HE CAN GO TO COURT AND SAY I
WAS ACTUALLY RIGHT ABOUT THIS.
>> THIS IS GOING TO BE WHAT HIS
DEFENSE IS.
DEFENSE IS. I’M A ZEALOUS ADVOCATE,
ADVOCATING ON BEHALF OF MY
CLIENT.
CLIENT. AND THE LAW IS CLEAR, JUST THE
FILING OF LAWSUITS IS NOT
EXTORTION.
EXTORTION. HOWEVER, IT HAS TO BE
EXCLUSIVELY DONE FOR PURPOSES OF
ADVANTAGING THE CLIENT.
WHEN YOU ARE SAYING LINE MY
POCKETS WITH MONEY, THAT TO ME
IS WHERE HE WENT OVER THE LINE
AND CLEARLY THEY INDICATE THERE
IF IT’S NOT DONE EXCLUSIVELY FOR
THE BENEFIT OF THE CLIENT, THEN
IT CAN BE CONSIDERED EXTORTIVE.
HE’S BASICALLY SAYING I’M GOING
TO KNOCK YOUR MARKET CAP DOWN BY
BILLIONS OF DOLLARS.
I’M GOING TO DO IT RIGHT BEFORE
THE NCAA TOURNAMENTS, AND THAT’S
MAYBE OKAY.
MAYBE OKAY. BUT WHEN HE SAYS I WILL
BASICALLY WHITEWASH THE WHOLE
THING IF YOU PAY ME MONEY,
THAT’S WHERE THE EXTORTION --
THAT’S WHERE YOU NO LONGER
BECOME A LAWYER AND YOU BECOME A
SHAKEDOWN ARTIST.
SHAKEDOWN ARTIST. >> I’VE ONLY GOT 30 SECONDS LEFT
AND THIS REALLY ISN’T A LEGAL
QUESTION, PAUL, BUT I’LL ASK YOU
ANYWAY.
ANYWAY. WE ALL KNOW THAT JUDGES ARE THE
RANGE OF PERSONALITIES THE WAY
THEY SENTENCE, THE WHOLE THING.
BUT GENERALLY WOULD A JUDGE LOOK
AT A LAWYER DIFFERENTLY AND SAY
YOU KNEW BETTER, YOU’RE A
LAWYER, YOU PASSED THE BAR, ARE
YOU KIDDING ME?
>> AND HERE’S WHERE A JUDGE
WOULD MOST CERTAINLY DO THAT.
AGAIN, CHRIS, IF THESE CHARGES
ARE PROVEN TO BE TRUE, IF YOU
EMBEZZLE YOUR CLIENT’S MONEY,
THAT IS SUCH AN EXTRAORDINARY
ABUSE OF YOUR TRUST RELATIONSHIP
BETWEEN THE LAWYER AND THE
CLIENT.
CLIENT. AND REMEMBER THESE JUDGES ARE
LAWYERS THEMSELVES.