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 October 31, 2024

Ninth Circuit Court Overturns Michael Avenatti's 14-Year Embezzlement Sentence

Michael Avenatti's 14-year prison sentence has been overturned by a federal appeals court, marking a significant twist in the former attorney's legal battles.

Courthouse News reported that a Ninth Circuit panel cited sentencing errors and ordered a new sentence assessment for Michael Avenatti.

Michael Avenatti, once a prominent lawyer known for his representation of Stormy Daniels against Donald Trump, faced multiple legal challenges that led to his imprisonment. His legal troubles culminated in a 14-year sentence for embezzling millions from his clients.

This initial ruling was based on the total value of settlements meant for clients, which, according to the Ninth Circuit, mistakenly included fees and costs that should have been deducted.

The appellate panel, consisting of U.S. Circuit Judges Michelle Friedland, Roopali Desai, and U.S. District Judge Karen E. Schreier, found critical errors in the trial's handling by the district court judge in Orange County.

Appeals Court Highlights Sentencing Discrepancies

During the appeal, it was argued that the calculation of stolen amounts did not accurately reflect the actual losses incurred by the victims. This miscalculation led to an "off-the-charts harsh and unfair" sentence, according to Avenatti's defense attorney, Dean Steward.

"By finding that Avenatti’s victims 'lost' the full settlement value without accounting for Avenatti’s fees and costs, the district court enhanced Avenatti’s sentence based on pecuniary harm that did not occur, and did not 'result from [Avenatti’s] offense,'" the judges noted.

These findings prompted the appellate court to vacate the original sentence and call for a thorough reassessment to determine a more accurate sentencing base.

Avenatti's legal battles began with a mistrial in his first embezzlement trial, followed by a guilty plea in subsequent proceedings where he admitted to stealing $7.9 million from clients and obstructing the IRS.

Aside from the embezzlement cases, Avenatti is also serving sentences for other crimes, including four years for defrauding Stormy Daniels and 30 months for attempting to extort Nike.

These sentences add complexity to his legal profile, painting a picture of a fallen high-profile attorney who once held significant media attention.

Reaction to the Court’s Decision

Avenatti's federal public defender, Margaret Farrand, expressed relief at the Ninth Circuit's decision, emphasizing that it recognized the sentencing inaccuracies that led to the increased penalty.

"I am glad that the Ninth Circuit recognized the errors that wrongly increased Mr. Avenatti’s sentence," said Farrand.

The U.S. Department of Justice has not commented on the ruling, reflecting the case's ongoing complexity and sensitivity.

With the Ninth Circuit's ruling, Avenatti now faces a potentially reduced sentence, contingent upon the outcomes of the reassessment ordered by the court.

His attorney, Dean Steward, stated, "looks forward to the full hearing ordered by the court," indicating ongoing legal strategies to further mitigate Avenatti's penalties.

This decision could significantly impact Avenatti's future, potentially altering the length of his time in prison and influencing public and legal perceptions of the justice administered in high-profile embezzlement cases.

Written By:
Christina Davie

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