Avenatti cross-examines paraplegic former client

A man left a paraplegic while in jail testified Thursday he never saw a dime of a $4 million settlement his lawyer negotiated with Los Angeles County -- until the day that lawyer, Michael J. Avenatti, was accused by federal authorities of using the money to pay for his own gilded lifestyle.

"I trusted Michael. I trusted him with everything. He helped me get out of jail. He got a settlement for me," Geoffrey Johnson testified under questioning from a federal prosecutor.

Avenatti is accused of stealing $10 million from settlements for five clients. In a stunning turn of events, Avenatti announced during jury selection Tuesday that he intended to represent himself in the trial before U.S. District Judge James V. Selna in Santa Ana. Avenatti is charged with 10 counts of wire fraud, and several counts of bankruptcy and tax fraud. He faces a maximum sentence of more than 330 years in prison if convicted on all the charges. USA v. Avenatti, 19-CR-00061 (C.D. Cal., filed April 10, 2019).

On Thursday, Avenatti seemed to have no hesitation about sharply questioning his former client, who was placed in the jury box outside the presence of the jury at Avenatti's request to avoid drawing sympathy from the jurors.

Avenatti got Johnson to acknowledge that Avenatti arranged for another lawyer to get him out of jail and into a care facility. Johnson said he had no idea Avenatti's law firm paid for his medical care and his stay at the facility.

"Did you believe I was working tirelessly with my team to navigate a system that had cracks wide enough for whole populations to fall through?" Avenatti asked.

"Yes," Johnson replied.

"And did you appreciate me, and every bit of my time and energy?" Avenatti asked.

Johnson said yes. Johnson also acknowledged that Avenatti never asked him for money for the cost of the care facility. Avenatti set him up with a case manager who helped Johnson get the medical care he needed, which was also paid for by the law firm.

Johnson testified under questioning by prosecutors that he believed Avenatti was supposed to get 40% of any settlement under the contingency agreement they signed. In his opening statement Wednesday, Avenatti told the jury that additional services he provided clients weren't free.

Prosecutors emphasized in their questioning of Johnson that he had plans to buy a disabled access home when he received the settlement money and that he had to beg Avenatti for money for rent that went unpaid for six months.

Jurors were shown a series of text messages between Johnson, Avenatti and his former paralegal Judy Regnier. One such slide showed a host of texts Johnson sent to Regnier and Avenatti, most of which were met with no response. All asked if the firm could deposit into his bank account about $1,000 so that Johnson could pay his rent. Johnson's plans to buy a home were also interrupted; he testified that he assumed it was because the special needs trust he wanted to establish to hold the settlement funds was declined by the county.

Johnson's case against Los Angeles County settled for $4 million in 2015 but he was never told, he said. Johnson said he eventually was told he would receive quarterly payments once the money came through. Avenatti told him to keep quiet about the settlement because it was confidential, Johnson testified. The check from the county was dated Jan. 6, 2015.

Over the next four years, Johnson had repeated conversations with Avenatti and Regnier about getting the money. He said Avenatti told him he would send payments of less than $2,000 so that Johnson could remain eligible to receive Social Security benefits.

Then, on March 22, 2019, Avenatti appeared on his doorstep; it had been more than a year since Johnson last saw him, he testified. Avenatti told him the settlement money had come through and that the special needs trust was approved, Johnson testified.

"During that conversation on March 22, 2019, at your home, did the defendant tell you he had just been accused in a court proceeding that day of stealing your settlement funds?" Assistant U.S. Attorney Alexander C.K. Wyman pressed.

"No he did not," Johnson said.

Avenatti returned to his house the next day with a few forms for Johnson to sign, one of which was a referral form that stated Avenatti did a great job as his attorney and the second was what Avenatti said was a release from liability as to the county of Los Angeles, Johnson testified, but in reality, the release of liability was to Eagan Avenatti LLP.

Wyman asked Johnson if Avenatti ever told him he himself would help get a loan to buy Johnson's house.

"No," Johnson replied.

Wyman showed Johnson loan papers dated October 2017 that Johnson said he never signed.

Avenatti's former partners ended up giving Johnson $1.5 million of the settlement money last year. Avenatti seized on that to show the client was paid.

"Now sir, would you agree that if someone came before this jury and told them Michael Avenatti stole the entirety of Mr. Johnson's $4 million settlement check, that would be completely false, right?" Avenatti asked.

"No," Johnson replied.

Under redirect by Wyman, Johnson said he did not want to be financially dependent on Avenatti and that if he knew the settlement money had come in, he would have moved out of care facilities to buy a home.

"Who's the person you believed to be responsible for you never getting the money?" Wyman asked.

"Michael Avenatti," Johnson said.

Testimony was to resume at 9 a.m. Friday.