Federal judge in New York wonders why Avenatti ‘co-conspirator’ wasn’t tried

While handing down Michael Avenatti's 30-month prison sentence Thursday, a federal judge in New York noted that Los Angeles attorney Mark Geragos suffered no consequences despite allegedly being Avenatti's co-conspirator and lying about representing the basketball coach at the center of the case.

Avenatti, who was found guilty of extortion by threatening to publicly accuse Nike Inc. of bribing young basketball players, faces two additional criminal trials. In New York, he is accused of defrauding his former client, pornographic film actress Stormy Daniels, out of a $300,000 book deal. In California, Avenatti is accused of defrauding other clients of his law firm. Jury selection in the California trial starts next week.

Explaining why he did not impose the eight-year sentence New York prosecutors were seeking for Avenatti in the Nike case, U.S. District Judge Paul Gardephe said Avenatti appeared truly remorseful and had suffered in a lockup facility early in the pandemic. "A variance is also necessary due to Mark Geragos. He was listed as an unindicted co-conspirator. He suffered no consequence. The government says, 'Geragos never met Franklin.' My answer is, 'He purported to represent Mr. Franklin,'" the judge added.

The reference was to Los Angeles youth basketball coach Gary Franklin, whom Avenatti was ostensibly representing when he approached Nike.

Geragos did not respond to a phone call and an email Thursday asking for his response to the judge's remarks.

Gardephe's words echo allegations now at the heart of a legal malpractice lawsuit filed by Franklin and his lawyer, Trent Copeland of Browne George Ross O'Brien Annaguey & Ellis LLP. Gary Franklin v. Mark Geragos, 20STCV37797. (L.A. Supt Ct., filed Oct. 1, 2020).

The lawsuit, filed in Los Angeles County Superior Court last October, alleges, among other things, that Geragos concealed a $1.5 million settlement offer Nike would have paid Franklin if Geragos and Avenatti hadn't used the coach's confidential client information in an attempt to "extort" the shoemaker for $20 million.

Copeland said Thursday that while he usually does not comment on pending litigation and did not want to elaborate on Geragos' alleged involvement in the Nike case, "What is available in the public record speaks for itself."

"Like federal Judge Paul Gardephe, who wondered aloud why the government chose not to include Mr. Geragos as a co-conspirator, as they had originally in their initial complaint, I too think it is puzzling," Copeland said. "But the standard of proof in a civil case is very different than it is in a criminal case and Mr. Franklin intends to pursue and vindicate his civil interest."

Last month, Franklin wrote a letter to Gardaphe, saying Geragos aided Avenatti in an attempt to extort millions of dollars from Nike.

Geragos denied the allegations in a phone interview a day later, pointing to an email filed as an exhibit in the criminal case that he says suggests Franklin and Copeland were trying to "extort" Nike.

"If the email is true and it's his, that would appear to most people to be an extortionate discussion," Geragos said.

Responding to Geragos that same day, Copeland said, "If Mr. Geragos persists in making wild, untrue allegations concerning my communications with a client, he is inviting another lawsuit."

The email Geragos pointed to appears to show Franklin discussing with Copeland allegations that Nike's senior management had committed a litany of crimes including racketeering, conspiracy, bribery, money laundering and fraud. Franklin has testified that Nike employees ordered him to pay tens of thousands of dollars to the parents and handlers of three prized NBA recruits.

The email goes on to say that all Franklin is looking for is "justice and restitution," and demands that Nike executives be fired and "in coordination with me" the company report the wrongdoings to the FBI and other authorities. The email also says Franklin and his youth basketball league, California Supreme, should receive financial restitution, and ends with a statement that he would go to the FBI on his own if his demands were not met.

The email was sent after Nike declined to renew a $72,000 sponsorship contract it had with California Supreme, according to Franklin's civil suit.

Franklin's lawsuit alleges Geragos told Nike executives by phone that he represented Franklin, but Geragos said he has never met Franklin.

Geragos was not mentioned by name in the New York indictment, but was identified as Avenatti's "co-conspirator," according to Franklin's civil lawsuit. A superseding indictment was filed in New York on Nov. 13, 2019, which removed allegations regarding the "co-conspirator" after Geragos voluntarily participated in two proffers with the government, also according to the civil lawsuit.

The next hearing in the civil lawsuit is scheduled for Aug. 23 before Los Angeles County Superior Court Judge Michael L. Stern.

Avenatti is suspended from practice and faces possible discipline as well as a move by the State Bar to declare him inactive.