Celebrity attorney Michael Avenatti was sentenced to 168 months in prison for wire fraud and endeavoring to obstruct the administration of the Internal Revenue Code. He was also ordered to pay $10 million in restitution to four clients and the IRS. Avenatti received funds for his clients and placed them into client trust accounts, but then misappropriated the funds to finance an extravagant lifestyle. He then lied to clients about the terms of their settlement or whether he had received their funds. In one case, Avenatti drained a client’s trust account to fund his own coffee business; in another case, he used the bulk of a client’s settlement to purchase a private jet. Regarding the obstruction charge, Avenatti lied to IRS agents, and changed his company’s name, EIN, and bank information to avoid IRS levies.
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