Avenatti Faces Re-Sentencing: Appeals Court Alters Fraud Case Outcome

Avenatti Faces Re-Sentencing: Appeals Court Alters Fraud Case Outcome

Michael Avenatti, once-celebrated attorney turned convicted felon, gets a second chance at sentencing for fraud and tax evasion.

At a Glance

  • Federal appeals court orders re-sentencing for Michael Avenatti’s 14-year prison term
  • Original sentence deemed flawed, focusing too heavily on perjury enhancement
  • Court directs consideration of Avenatti’s legal services and restitution efforts
  • Potential for significant reduction in sentence, possibly by half
  • Case returns to trial court for reassessment of multiple factors

Avenatti’s Fall from Grace: A Legal Saga Continues

Michael Avenatti, the attorney who shot to fame representing Stormy Daniels against Donald Trump, now faces a pivotal moment in his own legal battles. A federal appeals court has ordered a re-sentencing for Avenatti, who was originally slapped with a 14-year prison term for defrauding clients and evading taxes. This decision marks a significant turn in the ongoing saga of a lawyer who went from media darling to convicted felon.

The three-judge panel’s ruling highlighted serious flaws in the original sentencing, particularly an overemphasis on a perjury enhancement that skewed the punishment. They also found that the court failed to adequately consider Avenatti’s legal services to his clients or his efforts at restitution. This oversight could potentially lead to a substantial reduction in Avenatti’s sentence, with some speculating it could be cut by as much as half.

The Charges and the Appeal

Avenatti’s legal troubles stem from his 2022 guilty plea to four counts of wire fraud and one tax charge, entered without a plea deal. These convictions came on top of previous sentences for aggravated identity theft and an attempted extortion of Nike. The appeals court’s decision now forces a reassessment of how these separate convictions and sentences should align with the newly decided sentence.

“Avenatti contends that (Selna) should have accounted for the value of his legal services and costs, as well as the value of certain payments he made to victims. We agree,” appellate judges said.

The panel’s ruling exposed multiple errors in the original sentencing. They found that the district court improperly increased punishment based on obstruction of justice and perjury, without making explicit findings on these elements. Furthermore, the judges disagreed with the calculation of $12.3 million in losses due to fraud, arguing that Avenatti should receive credit for legal fees, expenses, and payments made to clients.

Implications and Reactions

This decision has been met with mixed reactions. Avenatti, unsurprisingly, expressed gratitude for what he sees as a correction of an unjust sentence. His attorney, H. Dean Steward, voiced optimism about the ruling and looks forward to a complete hearing on the issues. Meanwhile, the U.S. attorney’s office in Los Angeles, which prosecuted the case, has remained silent on the decision.

“I am thankful that a UNANIMOUS three judge panel of the 9th Circuit threw out my draconian prison sentence today. The sentence was always grossly unjust and violative of my most basic constitutional rights, but the government sought it anyway solely because of who I am. We ALL deserve due process,” Avenatti said.

As the case returns to United States District Judge James V. Selna for reconsideration, it’s clear that the re-sentencing process will demand a careful weighing of multiple factors. These include the value of Avenatti’s legal services to his victims, his restitution efforts, and how his sentences for identity theft and the Nike case should align with the new sentence.

He knows this isn’t a win, right? He’s still guilty…