Judge gives Avenatti prosecutors 2 weeks for discovery timetable

Federal prosecutors have two weeks to tell Michael J. Avenatti when he might receive client files seized after his arrest in March, part of an order Monday from a judge who is grappling with a growing discovery fight.

While assistant U.S. attorneys Brett A. Sagel and Julian L. André agree Avenatti has a right to files about five clients who are alleged victims in his 36-count federal indictment, they don't believe he has a right to other Eagan Avenatti LLP property now that a court-appointed receiver is managing the bankrupt firm.

Avenatti's lawyer, sole practitioner H. Dean Steward, said a full defense is impossible without the material, which includes time records, emails and other correspondence.

The U.S. attorney's office is reviewing everything through a standard process that tasks prosecutors not involved in the case with analyzing material for possible attorney-client privilege claims. Several items, such as a desktop computer, laptop, iPhone and iPad, can't be accessed because prosecutors don't have the passwords, and Avenatti won't provide them.

U.S. District Judge James V. Selna said Monday he'll likely issue an order to show cause why the devices shouldn't be given to a third party "and the password agreed only to the third party."

"Whether that content is to be turned over is a separate question to be litigated," Selna said. But, "I'll wait for the government's motion."

André said they need three months to finish the privilege review, which he said prioritizes review of information related to the five alleged victim clients. Selna initially gave them a week from Monday to report a timetable for the release of that information, then adjusted the deadline to July 22 at André's request.

In light of Steward's report that a grand jury currently is convened hearing evidence about Avenatti, Selna asked André if he anticipates brining a new superseding indictment or a separate indictment. A reticent André said, "there is no present intent" and said he's aware of the effect that would have on pretrial discovery.

"I don't think there's much I can add in this setting under Rule 6," Andre said, referencing the federal criminal procedure rule that governs grand jury proceedings.

Regarding a trial date, Steward warned Selna of voluminous discovery "which could be literally millions an millions of pages."

"I'm facing just a mountain of material that I think even Gibson Dunn would be intimidated by," Steward said.

André said not everything pertains to Avenatti's case. "This is not a scenario where we anticipate anyone is going to have to look through 75 million pages of documents," he said.

Selna said he'll schedule a trial date at the next status conference on Sept. 18. A hearing on the discovery issues related to the receivership of the law firm is scheduled Aug. 26. U.S. v. Avenatti, 19-CR0061 (C.D. Cal., filed April 10, 2019).