In Stormy Daniels Trial Avenatti Crosses St Martin's Beier Then Loses Rule 29 Motion, Lack of Witnesses
After a weekend of motions, things appear to moving to end game. Inner City Press will stay on the case
By Matthew Russell Lee, Patreon Song Radio
BBC - Decrypt - Podcast - Order Affidavit
SDNY COURTHOUSE, Jan 31 – Michael Avenatti's financial affidavit to get a publicly paid lawyer for his Stormy Daniels case, which Inner City Press formally sought to have unsealed for eleven months, were on July 27, 2021 ordered unsealed. Order.
Podcast here. Aug 13 podcast here.
On the weekend before trial there's was a request to delay it, on COVID policy and Constitutional grounds. It was denied.
The trial started on the morning of January 24. Inner City Press live tweet here. It continued in the afternoon, with Stormy Daniels' literary agency Lucas Janklow being cross examined about being introduced to Michael Avenatti at a hotel bar, by Anderson Cooper. Inner City Press live tweeted, thread here; stream here, video here
On the morning of January 31, Avenatti did two final cross examinations then was asked about his own case. Inner City Press live tweeted, thread here:
Assistant US Attorney: Are you "EB"?
Elizabeth Beier: I am.
AUSA: What did you mean in this email about not responding? EB: We were not responding to Denver Nicks, Ms. Daniels' publicist. AUSA: At any point did Mr. Avenatti make any legal threat about the payments to Ms. Daniels?
Avenatti: Objection! Asked and answered. Judge Furman: Overruled. EB: No, he never made any legal threat. Inner City Press @innercitypress ·
Elizabeth Beier: I called Ms. Daniels and she told me she was referring to the third payment, which we had already made. AUSA: What is this document? Beier: A check request for the last or fourth payment for Full Disclosure. Inner City Press @innercitypress ·
Cross examination: Avenatti: Did I ever ask St. Martin's to send me any money? Beier: No. Avenatti: You would not be aware of any communications I had with Mr. Janklow about legal action against St. Martin's? AUSA: Objection. Judge Furman: Sustained. Inner City Press @innercitypress ·
Avenatti: The thought of not paying the fourth payment was based on the terrible sales of the book, correct? Beier: We believed there was not enough publicity. Some 40,000 copies were sold. Inner City Press @innercitypress ·
Avenatti: How many did you expect to sell? AUSA: Objection. Judge Furman: Overruled. Beier: Four times that. 150,000. Inner City Press @innercitypress ·
Avenatti: How many books would have had to be sold for Ms. Daniels to get any royalties? Beier: Back of the envelope? 100,000. Avenatti: She'd get $4 per book, correct? Beier: That's each hardcover. Inner City Press @innercitypress ·
Avenatti: Is it fair to say St. Martin's lost a ton of money on this book? AUSA: Objection! Judge Furman: Overruled. Beier: We lost money. Avenatti: Hundreds of thousands of dollars, right? Beier: I expect that is correct. Inner City Press @innercitypress ·
Avenatti: Who is John Karle? Beier: He works in publicity for St. Martin's. Avenatti: Do you recall Denver Nicks contacted St. Martin's and said Stormy would not do any more publicity after the Don Lemon --
AUSA: Objection! Judge Furman: Sustained. Avenatti: Did you tell me and Mr. Janklow, "Great partners"? Beier: I don't remember that. Avenatti: On July 24, 2018, isn't it true that you thanked me and Mr. Janklow for our time and attention on the book? AUSA: Objection. Judge Furman: Sustained. Inner City Press @innercitypress ·
Avenatti: Who wrote the forward to the book? Beier: You did. Avenatti: Who took the time to record the audio of the forward? Beier: You did. Judge Furman: Mr. Avenatti, how much more do you have of this? Avenatti: Thirty to forty-five minutes. Inner City Press @innercitypress ·
Avenatti: Ms. Beier, do you remember in September 2018 there was a leak of the book? Beier: Yes. Avenatti: Do you remember there was a book signing scheduled for Ms. Daniels at the Museum of Sex here in NYC?
Beier: Yes. Inner City Press @innercitypress ·
Re-direct: AUSA: Are poor book sales a basis for withholding payment? Beier: No. AUSA: Did St. Martin's expect the third payment to go to the defendant? Beier: No. AUSA: No further questions. Inner City Press @innercitypress ·
Next US witness: SDNY staffer Medrano. AUSA: What is your focus as an investigative analysis at the SDNY? Medrano: White collar crimes. Judge Furman: It's 11 am, usually I'd give a break here but we are within 15 minutes of a possible longer break so let's push forward. Inner City Press @innercitypress ·
Avenatti launching cross examination of SDNY staffer Medrano Avenatti: Who decided that this timeline would end on Feb 19, 2019 at 2:09 pm? Medrano: The prosecution team. Avenatti: Do you read books? Medrano: Yes. Avenatti: Do you just read sections out of the middle? AUSA: Objection. Judge Furman: Sustained. Inner City Press @innercitypress ·
And now Judge Furman tells the jury, the US has rested its case. The defendant has no duty to put on a case. I need to discuss this with the parties. I'm checking with the cafeteria to see if you lunch can be brought early. Inner City Press @innercitypress ·
Jury leaves. Judge Furman: Is there a motion under Rule 29? Avenatti: There will be. But first, I intend to move to exclude the chart Mr. Medrano spoke about but didn't prepare. Judge Furman: I don't see any basis for that. Inner City Press @innercitypress ·
Avenatti: The government has given the jury to false impression that Ms. Daniels informed me she had retained Mr. Brewster before I terminated her as a client. That is false. And we've told the government. It is incumbent on them to correct the misimpression. Inner City Press @innercitypress ·
Judge Furman: It's called the adversary process. You can cross examine, you can put on a case. I don't understand what your application is. Avenatti: I move under Rule 29 because the US has not satisfied the elements. Inner City Press @innercitypress ·
Judge Furman: There is ample evidence in the record on which the jury could find you acted contrary to your duties. You can argue what you want to the jury. Next argument. Avenatti: The US is relying on Ms. Daniels saying I wouldn't take money from the book deal Inner City Press @innercitypress ·
Avenatti: I was entitled to a reasonable fee. I cannot be convicted for stealing money I was entitled to. Judge Furman: Your Rule 29 motions are denied. I don't understand why you are not prepared to tell me what exhibits you intend to ask to introduce. Inner City Press @innercitypress ·
Avenatti: We had 5 witnesses ready, but your Honor issued an order for them not to come. Judge Furman: That's not true. I told only one not to travel from California, due to the motion to quash. Judge Furman: Mr. Avenatti you have some obligation to be prepare to put on your case. Avenatti: Mr Loupe has flown back to New Orleans after your ruling --
Judge Furman: Mr. Avenatti, I did not MAKE any rulings. Inner City Press @innercitypress
Judge Furman: We'll take a break of 15 minutes. Then I expect you to be ready to speak to me about exhibits then who will testify tomorrow, or who will testify at all. Adjourned.
On January 30, the US wrote in on quantum meruit, and invited Avenatti to testify: "Although the defendant is wrong that he was entitled to take Ms. Daniels’s book payment under the law of quantum meruit, a mistaken belief about his legal rights could support a good faith defense. The Government is required to prove that the defendant had the requisite mens rea, including that he acted with a wrongful purpose. (See Letter Mot. on Willfulness, Dkt. No. 311). Good faith is a “complete defense to charges of wire fraud.” United States v. Dupre, 462 F.3d 131, 139 (2d Cir. 2006). The defendant therefore should be permitted to testify about his purported belief that quantum meruit permitted him to take Ms. Daniels’s money to support an argument that he acted in good faith. 3 The Court should carefully circumscribe the defendant’s testimony, however, and provide an appropriate instruction both at the time of the testimony and in the jury charge regarding the correct law, so as to avoid confusing and misleading the jury. First, while the defendant may describe the bases for his beliefs at a very high level, he should not be permitted to offer documentary evidence, delve deeply into legal theory that may confuse the jury and usurp the Court’s role." Full letter on DocumentCloud here.
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On January 25, the cross examination of Janklow continued, then an SDNY Special Agent and Avenatti law firm staffer. But in the middle, Federal Defenders said Avenatti may want to fire them and represent himself. Judge Furman said, Not so fast. Inner City Press live tweeted it, thread here
In the afternoon of January 25, Avenatti confirmed he wants to represent himself and Judge Furman granted it. He will cross examine Stormy Daniels, then. Inner City Press live tweeted it, thread here and below.
On the morning of January 26, podcast here, Avenatti cross examined Regnier than an FBI agent. Inner City Press live tweeted, thread here.
On the afternoon of January 26 Avenatti cross examined Sean Macias who hooked him up with Garagos, before those two double teamed Nike. Inner City Press live tweeted it, thread here.
On the morning of January 27, after the end of Macias and another SDNY witness, Stormy Daniels took the stand to begin direct examination. Inner City Press live tweeted it here.
On the afternoon, at the end, Avenatti began his cross examination. Inner City Press live tweeted the afternoon, here.
On January 29, Avenatti's cross examination continued, to two videos, thread here.
In the afternoon Avenatti got into, or tried to get into, Trump; afterward Inner City Press asked him about the case - and the Supreme Court. Thread here.
Avenatti-Watch a/k/a Foley Square Follies. here.
Judge Furman released his juror questions, asking each side to respond by January 19 at 10 am. The questions include: "Based on anything that you have read, seen, or heard about Mr. Avenatti, have you formed any opinions about Mr. Avenatti that might make it difficult for you to be a fair and impartial juror in this case? 10. Would you have any trouble following my instructions to put anything you may have read, seen, or heard about Mr. Avenatti out of your mind and decide this case based only on the evidence presented at trial? 11. Do you or does any member of your family or a close friend personally know or have past or present dealings with the alleged victim in this case, Ms. Clifford (also known as “Stormy Daniels”), or with any of her family members?...
"Do you know or have you heard of any of the following people or entities, which include the lawyers in this case, people who may testify at the trial, and other names that may be mentioned during the course of the trial? • Pamela Baez • Elizabeth Beier • Thomas Bolus • Clark Brewster • Christine Carlin • Michaela Catando (also known as Kayla Paige) • Dmitri Chitov • Dwayne Crawford • Jennifer Donovan • Anna Finkel • Mark Geragos • Jack Guiragosian • Holtzbrinck Publishers • Luke Janklow • Janklow & Nesbit Associates • Geoffrey Johnson • Global Baristas • Sean Macias • Macmillan Publishers • Susan McClaran • Benjamin Meiselas • Travis Miller • Mareli Miniutti • Erik Nathan • Denver Nicks • Kevin Carr O’Leary • David Padilla • Brandon Parraway • Pro Tech Security and Automation • Judy Regnier • Sally Richardson • Security and Automation LLC • St. Martin’s Press • Enrique Santos • Jessica Volchko • Juliet Vicari • Donald Vilfer 25. Are you familiar with anyone else present in the courtroom, including your fellow jurors, all Court personnel, and myself?"
On October 14 Judge Furman held a proceeding in the Stormy Daniels case and Inner City Press live tweeted it here and podcast here
On August 10 Avenatti's Federal Defenders filed a copy of the affidavit with multiple redactions. The form refers on nearly every question to an attachment, which is blacked out in absurd ways. It reads, for example, "I own stock in two closely held companies that may have value: (a) [REDACTED] located in [REDACTED] and (b) [REDACTED] located in [REDACTED]... I technically still have an interest in a private aircraft (model: HondaJet 420) that was seized by the IRS and is still in their possession. This interest is held through a single-purpose entity named [REDACTED]," and so forth.
Inner City Press published the redacted affidavit on its DocumentCloud here and asked, Will the Court be accepting this?
On August 11, the correct answer was: No. "MEMO ENDORSEMENT as to Michael Avenatti (1) on [139] LETTER MOTION re: [139] LETTER MOTION addressed to Judge Jesse M. Furman from Robert Baum, Tamara Giwa & Andrew Dalack dated August 10, 2021 re: Letter Motion In Response to Court's Order to File Financial Affidavit. ENDORSEMENT: The Court is unpersuaded that privacy interests justify redacting the names and locations of the corporate entities in Paragraphs 14, 15, and 17 of ECF No. 139-1."
After hours on August 12, some redactions were removed: Avenatti's owned a plane through Passport 420 LLC; an unnamed "non-family-member acquaintance" paid a NY-based attorney in the Nike case, whose name is redacted. Unredacted: Avenatti owns stock in Tyrian Systems (aka Seek Thermal) of Santa Barbara, CA and Centurion Holdings I, LLC of St. Louis Missouri."
Not so fast. Inner City Press research in the hours after the removal of the improper redactions found that Centurion Holdings I, LLC is based in Arnold, Missouri - and "received a PPP loan of $60,477 in May, 2020." That's the Paycheck Protection Program; the funds came through the Central Bank of St. Louis.
Bigger, the aka: "Seek Thermal, Inc of 6300 Hollister Ave in Goleta, California received a Coronavirus-related PPP loan from the SBA of $1,365,062.00 in April, 2020." We'll have more on this.
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On August 27, Inner City Press filed a formal request that documents in the case not be sealed, full filing on Patreon here.
On November 12, Inner City Press made a third filing with Judge Furman, on a decision to unseal issued earlier in the day by SDNY Judge J. Paul Oetken after Inner City Press filed to similarly unseal Lev Parnas' co-defendant David Correia's financial infor: "we again ask, why should lower income and less high profile defendants in the SDNY -- and now David Correia -- have their financial information so disclosed while Avenatti's information is sealed in its entirety? The documents at issue should not be sealed and should be made available."
On August 28, 2020 Judge Furman entered an order: "The Court received the attached communication from Matthew Lee of Inner City Press “seeking leave to be heard and for the unsealing of the CJA Form 23, affidavit, and all associated documents” relating to this litigation. To the extent that Mr. Lee (who is admitted to the bar of the Southern District of New York) seeks leave to be heard, his application is GRANTED. The Court reserves judgment on the question of whether Defendant’s CJA Form 23 and related documents should be unsealed. SO ORDERED. Dated: August 28, 2020 New York, New York JESSE M. FURMAN." Docket No. 85, on Inner City Press' DocumentCloud, here.
On July 27, 2021, Judge Furman four times citing Inner City Press ordered Avenatti's affidavits unsealed: "Avenatti filed a letter brief arguing that the Initial Financial Affidavit should remain under seal. ECF No. 80 (“Def.’s Mem.”). Thereafter, the Court received submissions from Inner City Press, a media outlet that intervened to seek disclosure of the Financial Affidavits, ECF Nos. 85, 90, 99... The Defendant initially argued that the Government lacked standing “to assert any right on behalf of the public to access Mr. Avenatti’s sworn financial statements.” Def.’s Mem. 7 n.1 (citing United States v. Hickey, 185 F.3d 1064 (9th Cir. 1999)). Subsequently, however, the Court granted leave to Inner City Press to be heard on the Defendant’s motion, ECF No. 85, which indisputably does have standing to assert such rights." Full order here, filings due August 10. Watch this site.
This case is US v. Avenatti, 19-cr-374 (Furman).
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