Zion, Duke not mentioned as prosecution claims Avenatti’s debt caused him to extort Nike
Opening arguments began Wednesday in the potentially explosive case of “United States vs. Michael Avenatti” that involves alleged payments Nike made to high-profile grassroots basketball players.
Avenatti, 48, is the well-known attorney who represented adult-film actress Stormy Daniels in her lawsuits against President Trump in an attempt to void a non-disclosure agreement she had signed. Before his arrest, Avenatti was touted by some as a potential Democratic candidate for president.
This latest trial follows the federal corruption trial that led to the convictions on wire fraud in October 2018 of former Adidas executive James Gatto, would-be-agent Christian Dawkins and Adidas consultant Merl Code for funneling illegal payments to families of recruits in exchange for attending Adidas-sponsored schools Louisville, Kansas and N.C. State.
The phrases “Duke” and “Zion Williamson” did not come up at all on day one of the Avenatti trial in the Thurgood Marshall United States Courthouse, but Avenatti previously claimed without providing documentation that Nike paid Williamson and that Duke coach Mike Krzyzewski was not only aware of the payment, but has been part of such payments to players for years.
In September, Duke “found no evidence” Williamson’s eligibility was compromised, according to information provided exclusively to The News & Observer and Herald-Sun. The 6-foot-6, 284-pound Williamson was the No. 1 pick in the NBA Draft and recently made his NBA debut with the New Orleans Pelicans after sitting out since October following a procedure for a torn meniscus.
“I never heard from anyone associated with Duke in connection with my allegations or any investigation,” Avenatti told The News & Observer and Herald-Sun in September. “I was never asked a single question. I was never asked what information or documents that I was aware of. Who the hell conducted this investigation? Inspector Clouseau? The documents and the hard evidence do not lie. Zion Williamson was paid to attend Duke. Coach K has made and facilitated payments to players for years. And when the truth comes out — and eventually it will — Coach K and Duke’s reputation will be forever and rightfully tarnished.
“And if what I am saying is untrue, I challenge Coach K and Duke University to file a defamation lawsuit against me tomorrow and we can let the chips fall where they may.”
Another No. 1 pick in the NBA Draft was referenced in the trial. Government attorney Robert Sobelman said that Nike made payments to the “No. 1 pick from Arizona.” He did not mention Deandre Ayton by name, but in March Avenatti tweeted images of four documents he said showed Nike’s funneling $10,000 to Ayton’s mother, Andrea. The images were date-stamped June 2016, months before Ayton began his senior year of high school at Hillcrest Prep Academy in Arizona and before he was a one-and-done at Arizona.
Ayton played for Gary Franklin, director of the California Supreme Nike EYBL team that received a $72,000 annual sponsorship from Nike.
Avenatti is charged with attempting to extract millions of dollars from Nike and defrauding his client, Franklin, by threatening to disclose publicly his client’s confidential information and to use his ability to garner publicity to inflict financial and reputational harm on Nike if his demands were not met.
Franklin maintains that Nike paid his players through two employees, Carlton Dubose and Jamal James, via a system of fake invoices that Sobelman said made Franklin “uncomfortable” and “angry.” (Ayton, who has maintained his innocence, now plays for the Phoenix Suns.)
The government claims Avenatti sought to extort Nike for $25 million in exchange for keeping the payments secret.
“Michael Avenatti thought Nike would pay and pay a lot to keep it all under wraps,” Sobelman said as Avenatti sat silently in the court.
Sobelman sought to paint Nike as the victim in the case.
“This trial is about how Nike was victimized by the defendant,” he said.
One of Avenatti’s attorneys, Howard Srebnick, argued Avenatti was simply trying to “achieve the goals of his client” and that “Nike was worried about the truth coming out.”
“Nike had been successful in containing the truth,” he added.
A lawyer for Nike, Scott Wilson, later testified that the Securities and Exchange Commission is currently investigating Nike.
The trial continues Thursday.
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This story was originally published January 29, 2020 at 7:13 PM with the headline "Zion, Duke not mentioned as prosecution claims Avenatti’s debt caused him to extort Nike."