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Avenatti hit with Nike extortion claims, other charges

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LOS ANGELES — A year ago, Michael Avenatti’s star was rising as the combative, media-savvy lawyer representing porn actress Stormy Daniels in her legal battles against President Donald Trump.

He hammered the president as a regular fixture on cable news and baited and bashed critics on Twitter while flirting with his own run for the White House.

Those days seemed like a distant memory as Avenatti was arrested Monday and federal prosecutors on both coasts announced charges that could send him to prison for the rest of his life.

Avenatti tried to shake down Nike for as much as $25 million by using his prominent position to threaten the company with bad publicity, federal prosecutors said. He was also accused of stealing a client’s settlement money to pay his own expenses and filing fake tax returns to get $4 million in loans from a Mississippi bank to fund a lavish lifestyle.

He was arrested at a New York law firm where he had gone to meet with Nike executives. It was just minutes after he tweeted that he planned to hold a news conference Tuesday to “disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered.”

“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,” said Geoffrey S. Berman, the U.S. attorney in New York.

Prosecutors in New York said their investigation began only last week while California investigators had been building a tax case against Avenatti for more than a year.

The allegations “paint an ugly picture of lawless conduct and greed,” said U.S. Attorney Nick Hanna in Los Angeles. Avenatti describes himself on Twitter as “fighter for good,” but the accusations describe “a corrupt lawyer who instead fights for his own selfish interests.”

Avenatti, 48, was ordered released on $300,000 bond after a brief court appearance Monday evening in New York. He did not enter a plea. Emerging from the courthouse, he said he expected to be cleared of the charges.

“For the entirety of my career, I have fought against the powerful. Powerful people and powerful corporations. I will never stop fighting that good fight,” he said. “I am highly confident that when all the evidence is laid bare in connection with these cases, when it is all known, when due process occurs, that I will be fully exonerated and justice will be done.”

Avenatti’s fame from the Daniels case made him a leading figure in the anti-Trump movement, with relentless cable news appearances, a hard-punching style and a knack for obtaining information about others’ wrongdoing.

His sharp reversal of fortune led critics to hit back on Twitter. Donald Trump Jr., whom Avenatti inaccurately predicted would be charged in the investigation into ties between his father’s 2016 presidential campaign and Russia, gloated.

“Good news for my friend @MichaelAvenatti, if you plead fast enough, you might just get to share a cell with Michael Cohen!” he wrote, referring to the former Trump lawyer set to go to prison next month for crimes that include orchestrating hush-money payments to Daniels. Trump Jr. mocked Avenatti by ending with the lawyer’s trademark hashtag #basta, an Italian word meaning “enough.”

Prosecutors said Avenatti and a co-conspirator initially approached Nike on behalf of a client who coached an Amateur Athletic Union basketball program sponsored by the company in California.

They claimed to have evidence of misconduct by Nike employees and threatened to hold a news conference last week on the eve of a company’s quarterly earnings call and the start of the NCAA tournament. Avenatti told Nike the company could either pay them $15 million to $25 million to investigate the allegations, or pay him more than $22 million for his silence, the criminal complaint said.

Two people familiar with the investigation confirmed the unidentified co-conspirator was Mark Geragos , a Los Angeles criminal defence lawyer known for his work with celebrities. The people spoke on condition of anonymity because the information was not made public by prosecutors.

Geragos, a CNN contributor, has a client list that has included Michael Jackson, Winona Ryder, Scott Peterson, Colin Kaepernick and most recently Jussie Smollett, the actor accused of fabricating a racist, anti-gay attack in Chicago. Geragos did not respond to messages seeking comment. Within hours, CNN cut ties with him.

While lawyers sometimes make demands to seek out-of-court settlements, it crosses the line to extortion if they threaten to go public with damaging information to get something of value or gain leverage in a civil dispute, attorney Neama Rahmani said.

“The Department of Justice historically has been very cautious when charging attorneys, so they likely have evidence that Avenatti seriously crossed this line,” said Rahmani, a former federal prosecutor.

Nike officials told investigators Avenatti claimed to know of rules violations by an amateur basketball team sponsored by Nike. Executives immediately reported the threats to federal authorities.

The company “firmly believes in ethical and fair play, both in business and sports, and will continue to assist the prosecutors,” Nike said in a statement.

Avenatti rose to national prominence by representing Daniels, whose real name is Stephanie Clifford, in a lawsuit to break a confidentiality agreement to speak about her alleged affair with Trump. He also made headlines in recent weeks representing two women who accused R&B star R. Kelly of sexual abuse.

Daniels said she was “saddened but not shocked” by the arrest. She issued a statement Monday on Twitter saying she fired Avenatti a month ago after “discovering that he had dealt with me extremely dishonestly.” She said she would not elaborate.

While Avenatti’s lawsuit effectively tore up the gag order that threatened financial penalties if Daniels spoke about the case, a defamation lawsuit filed on her behalf against Trump backfired, and a court ordered her to pay the president’s $293,000 in legal fees.

Avenatti himself has been dogged with tax and financial troubles in recent years.

A U.S. bankruptcy court ordered his former firm to pay $10 million to a lawyer who claimed it had misstated its profits.

The bank fraud case involved $4 million in loans he got from The Peoples Bank in Biloxi, which prosecutors said he obtained by filing fraudulent tax returns claiming $14 million in income over three years. However, he never filed tax returns those years, nor paid the $2.8 million he reported on the forms. In fact, he still owed more than $850,000 to the IRS at the time for previous income.

Mark Pearson, the assistant agent in charge of IRS criminal investigations in Los Angeles, said Avenatti’s crimes supported a $200,000-a-month lifestyle, a car racing venture and pricey homes in the wealthy Orange County communities of Newport Beach and Laguna Beach.

Convictions on all charges carry up to 47 years in the New York case and 50 years in the California case, prosecutors said.

___

Melley reported from Los Angeles. Associated Press writers Jim Mustian in New York, Michael Balsamo in Washington and John Antczak in Los Angeles also contributed to this report.

Brian Melley And Larry Neumeister, The Associated Press














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RCMP recruitment failure has Alberta advocacy group calling for Provincial Police Service

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News release from Free Alberta Strategy  (A Strong And Sovereign Alberta Within Canada)

“Make no mistake, we are paying for these services that we aren’t receiving. Alberta’s taxpayers are paying tens of millions of dollars for nearly 400 vacant RCMP officer positions – for boots that are not on the ground.”

A recent report from the Royal Canadian Mounted Police (RCMP)’s independent Management Advisory Board had findings that are nothing short of alarming:

“Federal policing has now arrived at a critical juncture of its sustainability, which present risks for the national security and safety of Canada, its people, and its interests,” says the report.

After over a year of diligent study, the Board has been tirelessly firing off flares, signalling to all who will listen: the very foundation of our national public safety apparatus may be at risk of faltering.

This is doubly problematic because, as you well know, the RCMP is also responsible for boots-on-the-ground policing in large parts of the country, including many rural and remote areas – including in Alberta.

Rural crime has been a longstanding issue in Alberta, and social disorder continues to make headlines nightly.

Alberta Minister of Public Safety, Mike Ellis, took to social media platform X (formerly known as Twitter) to express his opinion:

“The independent report finds the RCMP has struggled in recent years to recruit and retain regular members, a problem that’s particularly acute in federal policing. This is not about the hard-working men and women on the frontline: they are doing everything they can. The reality is the RCMP do not have enough officers to police communities in Canada effectively.” 

Ellis has been ahead of this story for months now.

In March, Ellis stated that:

“… on average, Alberta has an RCMP officer vacancy rate of 20 per cent. This means that Alberta is only being served by 1,522 of the 1,911 RCMP officers that the federal government has authorized for Alberta.”

“Make no mistake, we are paying for these services that we aren’t receiving. Alberta’s taxpayers are paying tens of millions of dollars for nearly 400 vacant RCMP officer positions – for boots that are not on the ground.”

The consequences of this capacity crisis are far-reaching.

Not only does it jeopardize the safety of Albertans, but it also undermines the credibility of Canada’s federal police force on the international stage.

With limited resources and personnel, the RCMP’s ability to address pressing national and global security concerns is severely compromised.

The Management Advisory Board, created in 2019 by the federal government to provide external advice to the RCMP commissioner, set up a task force in the fall of 2022 to study the federal policing program.

Overall, the report says budget and personnel shortfalls have left the RCMP “operationally limited,” restricting the number of cases it can take on annually.

Here are some more highlights from the report:

“Canada and its people have already begun to see the repercussions of the federal policing program being stretched thin.”

“Federal policing’s overall eroding capacity may have implications for the credibility of Canada’s federal police force and its investigations on the international stage.”

“Ultimately, this may influence Canada’s overall approach and standing in international politics, including its ability to advance global priorities.”

Clearly, we cannot afford to wait any longer.

Municipalities can ease the burden on our national security services by establishing municipal policing.

Several cities in Alberta already have their own police authorities, and the provincial government is providing funding for others interested in exploring this option.

Grande Prairie is already in the process of establishing their own municipal police service.

No word on how many other municipalities have taken the government up on their offer.

Unfortunately, President of Alberta Municipalities Tyler Gandam (also Mayor of Wetaskiwin) is featured prominently on the National Police Federation’s “Keep Alberta RCMP” website.

Interestingly, the Keep Alberta RCMP website doesn’t mention the fact that the advisory board even exists.

It doesn’t mention the report.

The notion that our federal policing infrastructure teeters on the brink of instability while Gandam appears to be asleep at the wheel, is deeply disconcerting.

The safety and security of Albertans must remain our top priority.

We cannot afford to wait any longer.

The time has come for the province to take swift and decisive measures to bolster policing capabilities in Alberta.

It’s time for Alberta to seriously consider the establishment of an Alberta Provincial Police Service.

It has been one of the core tenets of the Free Alberta Strategy.

If you agree, please reach out to your municipality and ask them to take steps to protect your community.

Together, we can keep Alberta safe.

Regards,

The Free Alberta Strategy Team

P.S. We’re hoping you’ll consider contributing to our cause. Your generous donation helps us make a positive impact in our community. No need to worry about any hold-ups or threats here. We’re just passionate about making a difference, and your support goes a long way in helping us achieve our goals.

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Making Alberta a geothermal energy leader

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Eavor announces it’s the #1 geothermal energy startup company in the world – January 2024

Alberta is creating Canada’s first geothermal test site to advance drilling innovation, reduce emissions and create jobs.

Geothermal energy uses naturally occurring heat within the earth to heat water and buildings and generate power, with few emissions or environmental impacts. Alberta has vast pockets of heat below ground, making the province Canada’s geothermal leader, but testing and developing new technologies can be a barrier for many companies. Unlike the United States, Japan and other countries, Canada does not currently have an open-access test site to help spur innovation.

Alberta is taking the first steps to create a new Alberta Drilling Accelerator. This groundbreaking facility would be the first of its kind in Canada, establishing Alberta as a global hub for geothermal technology. This will drive new innovations in geothermal and other clean energy projects that can reduce emissions and power communities around the world.

To kick-start the project, the Alberta government is investing $750,000 to conduct a feasibility study led by Calgary-based Eavor Technologies and other stakeholders. The study is the first step in assessing the proposed facility. It will include identifying a site, business planning, research on the governance model, an economic impact analysis and stakeholder engagement that will lay the groundwork for the initial planning stages of the project.

“Alberta has been a global energy leader for more than a century, renowned for our skilled workforce, innovation and one of the largest oil and gas reserves on the planet. The proposed Alberta Drilling Accelerator presents enormous potential to help our province lead the next wave of energy projects here at home and around the world that reduce emissions, create jobs and enhance energy security.”

Rebecca Schulz, Minister of Environment and Protected Areas

The Alberta Drilling Accelerator would help companies test out and develop new geothermal drilling techniques or technologies to reduce emissions and drive growth across the clean energy sector. It would be an open-access, technology-agnostic drilling test facility capable of drilling in challenging environments, including deep depths, high temperatures and different rock types.

The accelerator also would help speed up the development of carbon capture, utilization and storage; helium; critical minerals; and other clean technologies and commodities that rely on Alberta’s drilling sector. All of this helps attract investment and bring new technologies to scale in Canada.

“With cumulative geothermal investment poised to reach $1 trillion by 2050, a geothermal arms race is very much underway to commercialize novel drilling techniques that accelerate geothermal development – exhibited by testing facilities in the United States, China and Iceland. As Canada’s first geothermal test bed, the Alberta Drilling Accelerator will help bring geothermal technologies to scale, supporting companies like Eavor. We commend the Government of Alberta for this bold initiative.”

John Redfern, president and CEO, Eavor Technologies

“We are proud to witness Eavor, a CDL-Rockies alumni company, create new opportunities for innovators like themselves to advance the adoption of energy transition technologies like geothermal. The Alberta Drilling Accelerator will further solidify Alberta’s position as a leader in the global sustainable energy landscape.”

Heather Marshall, site lead for CDL-Rockies and Haskayne ScaleUp, University of Calgary

If the feasibility study shows the facility is economically and environmentally viable, and if the project is approved by the Alberta government, the facility will start taking shape at the selected site and drilling could start as early as 2025.

“Canada is home to the most advanced drilling technology in the world. Not only do our members support the responsible development of oil and gas, but we are integral in the extraction of new energy resources like geothermal and critical minerals. Our workers are at the epicentre of Canada’s energy transformation. Our people, technology and processes are leading the way towards a more diverse energy future. The Alberta Drilling Accelerator is a government-enabled policy approach to expand Alberta’s drilling capacity and reach its full potential as the world’s most diverse and technologically advanced producer and exporter of sustainable energy and critical minerals.”

Mark Scholz, president and CEO, Canadian Association of Energy Contractors

“The Alberta Drilling Accelerator is a testament to Alberta’s innovative and entrepreneurial spirit. Leveraging our oil and gas sector expertise, Alberta is poised to become the global leader in developing new geothermal technologies that will play an integral role in reducing emissions while supporting job creation.”

Alison Thompson, chair, Canadian Geothermal Energy Association

Quick facts

  • The Canadian Association of Energy Contractors estimates that one active drilling rig, whether drilling for natural gas or geothermal, creates approximately 220 direct and indirect jobs and
    $1 million in tax revenue.
  • In 2019, Eavor received $2 million in provincial funding through Emissions Reduction Alberta and Alberta Innovates for the world’s first closed-loop geothermal system.

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