High-profile attorney Michael Avenatti was more than $15 million in debt when he allegedly tried to blackmail Nike for $25 million, prosecutors with the U.S. District Court for the Southern District of New York said on Tuesday.
“Specifically, the Government presently estimates that the defendant’s debts at that time were, conservatively, in excess of $15 million,” the prosecutors said in the filing.
Avenatti, who is best known for representing adult film actress Stormy Daniels in lawsuits against President Donald Trump, denied the allegations on Wednesday, calling them “bogus.”
“Any claim that I was $15 million in debt is completely bogus, ludicrous, and absurd. I can’t wait for the trial in this case, at which point the TRUTH and FACTS will come out, and I will be fully exonerated,” Avenatti, 48, said in an emailed statement to Reuters.
Last week, Avenatti pleaded not guilty to attempting to extort $25 million from the shoewear giant by threatening to go public with claims the company made improper payments to athletes.
He also pleaded not guilty of stealing about $300,000 from former client Stormy Daniels after helping her secure a book contract, as well as to other crimes in California including wire fraud and bank fraud.
Avenatti was arrested in Manhattan on March 25, CNN reported. He appeared in court on the same day.
Avenatti met in March with a Nike attorney, threatening to release damaging information about the firm if it didn’t make a payment worth several million to himself and another person, according to a criminal complaint.
“I’ll go take $10 billion off your client’s market cap…I’m not [expletive] around,” Avenatti said, the complaint said.
“And I’m not continuing to play games,” he continued. “You guys know enough now to know you’ve got a serious problem, and it’s worth more in exposure to me to just blow the lid on this thing.”
Avenatti and a co-conspirator demanded to be paid a minimum of $15 million to $25 million and an additional $1.5 million for an Avenatti client to remain silent, the complaint said.
According to Fox News, federal authorities have alleged that he tried to embezzle money from a client to pay for his own expenses and for business ventures.
Epoch Times reporter Jack Phillips and Reuters contributed to this report.
