LOS ANGELES — Michael Avenatti, the attorney best known for representing porn actress Stormy Daniels in lawsuits against President Donald Trump, was arrested Monday on charges that he tried to extort millions of dollars from Nike and embezzled a client's money to pay his own expenses.
Greg Rossiter, global communications director for Nike, sent KGW a response to the news, saying the company "will not be extorted."
"Nike will not be extorted or hide information that is relevant to a government investigation," the statement reads. "Nike has been cooperating with the government’s investigation into NCAA basketball for over a year. When Nike became aware of this matter, Nike immediately reported it to federal prosecutors.
"When Mr. Avenatti attempted to extort Nike over this matter, Nike with the assistance of outside counsel at Boies Schiller Flexner, aided the investigation. Nike firmly believes in ethical and fair play, both in business and sports, and will continue to assist the prosecutors."
Avenatti, 48, was charged with extortion and bank and wire fraud in separate cases in New York and California. He was arrested in New York.
The allegations "paint an ugly picture of lawless conduct and greed," said Nick Hanna, the U.S. attorney in Los Angeles. Avenatti describes himself on Twitter as an attorney and advocate, but the accusations describe "a corrupt lawyer who instead fights for his own selfish interests."
In New York, U.S. Attorney Geoffrey S. Berman said Avenatti engaged in "a shakedown."
"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," Berman said.
The New York case accuses Avenatti of threatening to use his ability to get publicity to harm Nike. In the California case, he allegedly misused a client's money to pay his debts and those of his coffee business and law firm. Federal prosecutors said he also defrauded a bank by using phony tax returns to obtain millions of dollars in loans.
Avenatti allegedly threatened to hold a news conference last week on the eve of Nike's quarterly earnings call and the start of the NCAA tournament to announce allegations of misconduct by Nike employees. The attorney and a co-conspirator demanded to be paid $15 to $25 million and an additional $1.5 million for an Avenatti client to remain silent, the complaint said.
Shortly before the charges came to light, Avenatti tweeted that he planned to hold another news conference regarding Nike on Tuesday morning. Less than 45 minutes later, prosecutors announced the extortion case.
A person familiar with details of the Avenatti investigation told The Associated Press that a co-conspirator was celebrity attorney Mark Geragos.
CNN cut ties with Geragos just hours after he was named as a co-conspirator. A CNN representative confirmed that Geragos is no longer a contributor to the network but didn't specify why.
The Avenatti client is a coach of an amateur athletic union men's basketball program in California, according to court papers.
The AAU program coached by the client was sponsored by Nike for $72,000 annually, the complaint said.
An email requesting comment was sent to Avenatti's office, and phone and text messages were sent to his phone by The Associated Press.
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 has also made headlines in recent weeks as the attorney representing two women who have accused R&B star R. Kelly of sexual abuse.
Daniels said she was "saddened but not shocked" to learn of Avenatti's arrest.