By Matthew Russell Lee, Patreon Song Radio
BBC - Decrypt - Podcast - Order Affidavit
SDNY COURTHOUSE, Jan 27 – 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 January 25, the cross examination of Janklow continues, 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:
Update: ran during the lunch break to the SDNY cafeteria, large ice water and saw... Avenatti and Federal Defender Baum at roundtable. Will aim to ask Avenatti some questions after the trial day. Now, UN noon briefing (banned from) then thread will resume
They're back. Assistant US Attorney: Ms. Daniels, did you author a book? Daniels: Yes, Full Disclosure. AUSA: Is this your publishing contract? Daniels: Yes. AUSA: What did the defendant tell you about taking some of your advance for himself? Daniels: Nothing.
AUSA: What did you do after you signed it? Daniels: Got really excited with my friends. I texted a photo of the contract to Michael. I didn't have access to a scanned but he asked me for it. AUSA: GX 16 and 16A.
AUSA: What is GX 301B? Daniels: My bank statements, for April 2018. AUSA: What is Stormy Entertainment? Daniels: It's my company. AUSA: When you got the payment where were you? Daniels: In a car with my bodyguard in California. It solidified I was a real author.
AUSA: Please read these messages. Stormy Daniels as Stormy, reading: Got the wire, can't feel my face. From smiling so much. AUSA: The defendant responded, We make a good team, smiley face, do you see that? Daniels: Yes.
AUSA: Where were you? Daniels: Making a commercial for an adult film company. I called Michael. He called me an American hero. He told me he would never take a penny from me for the book, that I'd worked for it and it was mine. AUSA: And what is this?
Daniels: My literary agent contract with Luke Janklow. AUSA: What percent was he supposed to get? Daniels: 15%. AUSA: Did you review this whole contract before testifying today? Avenatti: Leading! Judge Furman: Overruled.
AUSA: After you got paid in April what did you have to do? Daniels: I had to write my book, with the help of Kevin, a ghostwriter suggested by St. Martin's. I finished in July. AUSA: What's this audio clip? Daniels: He wanted me to check out who'd do my audio book
Daniels: Can we move this so there's not a glare? I don't want to touch it. [Referring to computer screen for exhibits] AUSA: Look at this. Was the second payment made, to your understanding? Daniels: I thought it had not been sent.
Daniels: I set up a second bank account because I was having problems with my husband and some money was production money and I wanted to keep it separate. AUSA: What did you write? Daniels: I did not get paid today and I am not f*cking happy.
AUSA: And here, what did you write? Stormy: That Denver is on it. AUSA: Who is Denver? Stormy: He was going my publicity at the time.
That night, I was going on the Jimmy Kimmel show to promote the book. AUSA: Did the defendant tell you he had your third book advance payment? Daniels: No he did not. AUSA: Show me where in these messages he told you he had your third payment. Daniels: I can't, because he didn't.
AUSA: And these messages, who are they between? Daniels: Myself and Michael Avenatti. I asked, what about reimbursement for my dragons, my bodyguards, and I asked, how much is in the legal fund?
AUSA: Can you point me where in this message the defendant told you that you were suppose to pay your dragons yourself? Daniels: Nowhere. [Note: Stormy called her security guards "dragons" and paid them $26,000, to be paid back by Avenatti from legal defense fund]
AUSA: Let's look at GX 42. What did you ask? Daniels: "Any news?" AUSA: And this? Daniels: I was asking about this second legal defense fund Michael set up and that I knew nothing about. My email and social media were blowing up with people asking me if I was broke
AUSA: What's this? Daniels: I asked, Are you threatening me now? Checks have bounced. I'm tired of finding sh*t out on Twitter. I'm not a liar. You have balls of steel. I will always respect you. But I have not been paid.
AUSA: And this, Michael's accounting of the crowd-funding, did it mention the book contract payments? Daniels: No. AUSA: What's this? Daniels: A post Michael wanted me to put on my social media. I did, adding a curse word. My fans know I have a potty mouth. AUSA: Now what did you ask?
Daniels: When is the publisher going to cough up my money? I'm about 2 second from blasting them publicly. AUSA: Do you know if the defendant ever actually sent a letter to the publisher about your payment? Daniels: I had no way to know.
Daniels: I wrote I was going to fire Luke. Why pay someone 15% to have them not respond? AUSA: Did the defendant ever tell you he had told Mr. Janklow and the published not to contact you? Avenatti: Objection! Lacks foundation! Judge Furman: Overruled.
Daniels: I told Michael, I am sending the publisher a certified letter. I am trapped in this house with my ex until I get paid and every day is one step closer to one of us going to jail.
AUSA: If you could afford a new house, would you be living with your ex-husband? Avenatti: Objection! Relevance! Judge Furman: Overruled.
AUSA: Why did Michael ask you, When do you look at the property? Daniels: He knew I was looking at a house in Florida. AUSA: What were you going to do there? Avenatti: Objection! Relevance! Judge Furman: Overruled. Daniels: Live there?
AUSA: Where in this does it say that Mr. Avenatti had already received and spent your third book payment? Avenatti: Objection! Argumentative! Judge Furman: Overruled. Daniels: Nowhere.
AUSA: So Mr. Avenatti wrote to you there were 9000 e-book sales, and 24,000 hard copy with some out in the field, some indies may feel disloyal returning them. But what does this have to do with the advance you were owed? Daniels: Nothing.
Daniels: My third payment was 4 months late, with a fourth payment coming due. Now Michael said they were offering to pay both, but a smaller amount. He asked if I'd be open to it. I said, Hell no. AUSA: Why? Daniels: Michael told me they hadn't paid.
Daniels: I told Michael I was going to do an interview and say authors should never do business with MacMillan... F*ck them. And there are reporters asking me why your office got seized and my files. WTF is going on?
AUSA: What did Avenatti respond? Daniels: That it was his old firm that was seized, not the one that worked on my case. He wanted me to tell the press, "It's a big nothing-burger." AUSA: What did you mean when you wrote, Find my f*ucking money? [Laughter]
AUSA: How did the defendant reply? Daniels: "Word," with like seven exclamation points. AUSA: And what does that mean? Daniels: Agreement. Very enthusiastic agreement. AUSA: Are you into paranormal activities? Daniels: Yes. And I get paid for video chats. AUSA: I am almost done [!]
Did you say you hope the defendant gets raped in prison? Daniels: Yes. I felt violated. But I didn't mean it.
AUSA: One last topic: Attorney Client privilege. Did you waive it? Stormy Daniels: Yes, I have nothing to hide. I want everyone to know. AUSA: No further questions [2:49 pm]
Judge Furman: Cross examination. Avenatti: The US asked you if particular texts said I had taken your money. Do you recall that? Stormy Daniels: No. Avenatti: Ms Daniels, do you have a single message that says I would not take any money from your book deal? A: No.
Avenatti: Ms. Daniels, how was I supposed to get paid for all of the work that I and my law firm did for you over the course of a year? Stormy Daniels: From the legal defense fund and winnings against Donald Trump.
Avenatti: I never told you I would work for $1, right? Stormy Daniels: No, you did not. You never mentioned one dollars to me. Avenatti: Everything in your book is 100% true, right? Daniels: Yes. Avenatti: And your statements on Twitter are true, right? A: Yes.
Avenatti: You have claimed that you have a perfect memory, haven't you - and that you can see and speak to dead people, haven't you? Daniels: Yes. Avenatti: And to look into residences from the outside. And speak to a haunted doll -- Daniels: She speak to everyone.
Stormy Daniels: The doll has her own Instagram. Avenatti: Move to strike. Can I have GX 3? Where in this contract does it say me and my firms would advance all of the costs associated with your legal representation?
Stormy: My screen went black. I can't read it. Avenatti: Read paragraph 3 into the record. Judge Furman: That bring us to 3 pm. We'll end. Don't read anything online about the case. I am monitoring the weather forecast, it will probably be ok for everyone to get home tomorrow. See you tomorrow morning.
[Stormy Daniels leave the witness box and courtroom] AUSA: Mr. Avenatti has indicted he intends to cross examine Ms. Daniels for six hours. If there's time tomorrow we have Elizabeth Myer from St. Martin's and one more SDNY staff witness, Ms. Medrano.
Avenatti: The government has had consistent access to this witness over the past three years. I have not. Judge Furman: That's generally how trial work. Do you have an application? Avenatti: Yes. They asked of Ms. Daniels' financial condition. So the door is open
Avenatti: I seek approval to explore her financial situation despite your rulings. Judge Furman: I said no inquiry into back taxes and spousal payments. You can only get into finances as they relate to bias. You certainly can ask about the house.
Avenatti: I'd like all of Exhibit 5 in, the WhatsApp chain. They elicited testimony that Ms. Daniels was never not responsive. But that is borne out by Exhibit 5. So I make an application to admit it. Judge Furman: It is denied, as to the entirety.
Judge Furman: I don't think we'll get to the defense case, but for planning? Avenatti: I expect two or three days, closer to two. I have not decided whether or not to testify. I'm talking to people I trust and will do so over the weekend.
Judge Furman: If you do testify, let's think about the US could have a chance to object to improper testimony. Perhaps stand-by counsel could read out questions. In any event, see you tomorrow.
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.
Watch this site.
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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