Avenatti's former client testifies with sobs, tart retorts

Between sobs and tart retorts, a woman who says attorney Michael J. Avenatti stole millions of dollars of her settlement money to buy an airplane kept jurors' attention for a second day of testimony Tuesday.

"I didn't buy a jet," Alexis Gardner snapped when Avenatti asked her if she signed the settlement agreement that he negotiated with her ex-boyfriend, the NBA player Hassan Whiteside.

Even though that answer was stricken from the record by Senior U.S. District Judge James V. Selna, the effect it had on the jury hearing Avenatti's wire fraud trial was obvious. Nearly the entire courtroom erupted into laughter.

Gardner testified on Friday that Avenatti kept her in the dark about most details in the settlement, rushing her to sign legal papers without explaining the details. Prosecutors have said Avenatti used much of Gardner's money to buy a private jet.

Avenatti, who is accused of stealing at least $10 million from five clients to fund his own lavish lifestyle, is making the case that the clients didn't understand that help he was giving them before their settlement money arrived would be deducted from their eventual award. USA v. Avenatti 19-CR-00061 (C.D. Cal., filed April 10, 2019).

Avenatti, who is representing himself, tried to show the jurors that his former client was just bad at math. Avenatti established for the jury that Gardner told federal agents and prosecutors that she believed Avenatti owed her $3.6 million. Then he produced paper and a pen and asked Gardner to break down the figures. After deducting Avenatti's third of the settlement plus fees, Gardener came up with $2.5 million.

The lawyer told her to recalculate. Then she came up with $1.75 million.

Gardner acknowledged that she did not know how much Avenatti incurred in costs and expenses in pursuing her claims against Whiteside.

Avenatti asked Gardner about her testimony on Friday that he had instructed her not to tell anyone, including family members, about the terms of her settlement.

Gardner immediately broke down into sobs and crumpled to the floor. The judge had to call an early break as Gardner's sister knelt next to her.

On redirect, Assistant U.S. Attorney Brett A. Sagel pointed out that the retainer agreement never said Avenatti would be entitled to 33.3% of the settlement amount, and questioned why Avenatti would ask her to calculate that in.

"Probably to continue to confuse me," Gardner said. In the end, that $1.75 million figure she came up with during her calculations in front of the jury was never paid, Gardner testified.

Gardner said she asked Avenatti for a copy of her settlement agreement but he kept finding excuses not to give it to her or explain where her money went. Prosecutors say Avenatti didn't tell Gardner that the settlement money had arrived and instead made monthly $16,000 payments to his client to keep her from asking questions.