According to AP News, the Supreme Court declined to overturn lawyer Michael Avenatti's conviction for plotting to extort up to $25 million from Nike, upholding his 2 1/2-year prison sentence.
Avenatti, known for representing Stormy Daniels in litigation against ex-President Donald Trump, unsuccessfully argued against the conviction, contending it was based on an unconstitutionally vague fraud statute and that he was engaged in settlement negotiations with Nike.
The decision marks a setback for Avenatti, who faces multiple legal challenges, including charges related to stealing book proceeds and settlement funds from clients.
Michael Avenatti's Nike Case
The Nike case involving Michael Avenatti centered on an extortion scheme where Avenatti attempted to blackmail the athletic apparel giant for up to $25 million.
In March 2019, Avenatti was arrested and charged after threatening to release damaging information about Nike unless the company paid him a substantial sum.
The alleged information from a whistleblower claimed that Nike had been involved in illicit payments to amateur basketball players, violating NCAA rules.
Avenatti demanded a multi-million dollar payment to conduct an internal investigation or a $22.5 million payment for his silence.
Instead of complying, Nike reported the extortion attempt to federal authorities, leading to a sting operation and Avenatti's arrest.
In February 2020, Avenatti was found guilty of extortion, transmission of interstate communications with intent to extort, and wire fraud. CBS News reported that he was sentenced to 2.5 years in prison for using his position as an attorney to leverage confidential information for personal gain.
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