NEW YORK _ Celebrity attorney Mark Geragos feared that Michael Avenatti "crossed a line" in fraught negotiations with Nike that devolved into extortion, prosecutors say.
The feds revealed new details about the tense talks with the shoe giant in response to Avenatti's claim last month that Geragos was deeply involved in the case. Avenatti is accused of extorting Nike of more than $20 million, threatening to go public with allegations the company secretly paid basketball prospects.
"Contrary to the defendant's repeated assertions, (Geragos) has advised the Government that he did express to the defendant that he was concerned that the defendant had 'crossed a line,'" Assistant U.S. Attorney Daniel Richenthal wrote on Sunday.
The legal filing came as Manhattan federal Judge Paul Gardephe rejected Avenatti's effort to have two extortion charges against him dismissed because the allegations were too vague.
Avenatti asked Nike attorneys in March 2018 for a lump-sum payment made directly to him, alarming Geragos, according to the new filing. Geragos cautioned Avenatti he had to convey any money offer to their client, who claims that Nike executives pressured him to pay young basketball players beginning in 2016.
Geragos "was concerned about and uncomfortable with the situation ... which Geragos believed may have become extortionate," prosecutors wrote.
Despite the warning, Avenatti then demanded a lump sum payment of $22.5 million directly to him, rather than the client, prosecutors wrote.
Geragos "raised his concern and lack of comfort multiple times thereafter with the defendant, and insisted that the defendant must inform his client ... of Nike's offer, which the defendant said he would do (but did not, as demonstrated by evidence)," according to prosecutors.
The feds claim that Avenatti tried to shake down the shoe company in part because he was $15 million in debt. Avenatti has said that figure is "ludicrous and absurd."
Geragos, a Los Angeles lawyer who has represented celebrities like Colin Kaepernick, Michael Jackson and Winona Ryder, has not been charged in connection with the Nike case.
Avenatti faces separate charges in the same courthouse for allegedly defrauding his most famous client, Stormy Daniels, stealing a nearly $300,000 book advance. He's also accused of ripping off clients in Los Angeles, failing to pay taxes, bank fraud and lying during bankruptcy proceedings.
"'Allegations' mean nothing," Avenatti said in a text. "Once the actual evidence is presented in the Nike trial, I will be fully exonerated because I did nothing wrong."
