Federal appeals panel says suspended lawyer Michael Avenatti should be resentenced

PASADENA, Calif. (AP) — A federal appeals panel has vacated a 14-year sentence for suspended lawyer Michael Avenatti, who rose to fame representing porn star Stormy Daniels against former President Donald Trump and was later convicted of bilking his California clients.

A three-judge panel for the 9th U.S. Circuit Court of Appeals ruled Wednesday that Avenatti's sentence was based on calculations of a greater loss than was actually suffered and sent the case back to a judge for resentencing, according to a copy of the decision.

The panel also discussed in the decision whether the sentence should run concurrently to prison time Avenatti is already serving for stealing book proceeds from Daniels — who sued to break a confidentiality agreement with Trump to stay mum about an affair she said they had — and for trying to extort Nike.

“Mr. Avenatti is encouraged by the ruling of the Ninth Circuit Court of Appeals today. He looks forward to the hearing ordered by the Court," H. Dean Steward, an attorney assisting Avenatti with his case, said in a statement.

The U.S. Attorney's office in Los Angeles, which prosecuted the case, declined to comment on the decision.

Avenatti, who was suspended from practicing law in California, has been representing himself. He pleaded guilty in 2022 to four counts of wire fraud and a tax-related charge despite not reaching a plea deal with federal prosecutors, saying he wanted to be accountable and spare his family further embarrassment.

Authorities said Avenatti negotiated and collected settlement payments on behalf of his clients, then funneled the money to accounts he controlled and spent it on his own lavish lifestyle.