WASHINGTON, May 28 (Reuters) - The U.S. Supreme Court
declined on Tuesday to hear a bid by imprisoned celebrity lawyer
Michael Avenatti to overturn his conviction for defrauding a
client and extorting athletic wear company Nike ( NKE ).
The justices turned away Avenatti's appeal after a lower
court upheld his 2020 convictions.
In another trial, Avenatti in 2022 was convicted of
defrauding a separate client, porn star Stormy Daniels. That
case was not at issue in the current appeal.
At the center of the Nike ( NKE )-related case was a threat, caught
on an audio recording, that Avenatti made in 2019 to stain the
athletic wear company's reputation and hurt its stock price by
exposing its alleged corrupt payments to families of college
basketball prospects. Avenatti was heard threatening to "blow
the lid" on Nike ( NKE ) at a press conference unless it paid up to $25
million for him to conduct a probe, plus $1.5 million to his
client, youth basketball coach Gary Franklin.
Prosecutors said Avenatti was looking to enrich himself and
pay down heavy debts tied to his law firm and a recent divorce.
He was convicted of extorting Nike ( NKE ) and of committing "honest
services fraud" against Franklin, in which someone in a position
of authority deprives a client or constituent of his right to
honest services. Avenatti was handed a 2-1/2 year prison
sentence.
For his part, Franklin testified that he did not want an
investigation and merely wanted Nike ( NKE ) to resume sponsoring his
team.
Nike ( NKE ) has denied wrongdoing.
The Manhattan-based U.S. 2nd Circuit Court of Appeals in
August 2023 rejected Avenatti's appeal of his convictions,
prompting his appeal to the Supreme Court.
Avenatti's lawyers in a Supreme Court filing argued that the
1988 statute criminalizing honest services fraud is so vague
that it violates the right of defendants to due process under
the U.S. Constitution's Fifth Amendment. They also urged the
justices to take up the case to declare that settlement
negotiations like Avenatti's communications with Nike ( NKE ) cannot
give rise to criminal extortion charges.
President Joe Biden's administration recommended that the
justices decline Avenatti's appeal.
Avenatti, 53, gained fame in 2018 while representing Daniels
in litigation against then-U.S. President Donald Trump. He was
convicted of defrauding Daniels out of a book contract and was
sentenced in June 2022 to an additional 2-1/2 years behind bars.
The 2nd Circuit upheld that conviction in March.
An attorney for Avenatti did not respond when asked if he
would be appealing his conviction involving Daniels to the
Supreme Court. Hush money paid to Daniels ahead of the 2016 U.S.
election is at the heart of Trump's criminal trial in a New York
state court.
In December 2022, Avenatti was sentenced to 14 more years in
prison after he pleaded guilty to cheating four other clients,
including a paraplegic man, out of millions of dollars.