Avenatti charged with misappropriating Stormy Daniels' money

Prosecutors allege that Michael Avenatti diverted nearly $300,000 owed to his former client to make Ferrari payments, cover airfare and more.
2:09 | 05/23/19

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Transcript for Avenatti charged with misappropriating Stormy Daniels' money
Now to new legal trouble for Michael avenatti. The high-profile attorney is now being charged with stealing hundreds of thousands of dollars from his most famous client, stormy Daniels. Tom llamas is here with more. Good morning, Tom. Reporter: Michael, good morning. At one point Michael avenatti was debating running for president. Now his career in sthamles accused of crimes and his next move is not to the white house but may be to the big house. I'm pulling an avenatti. When you do that you have a factual basis and evidence to back up your statements. Reporter: This morning, the indictments are mounting against celebrity attorney Michael now facing up to 300 years in prison if convicted. Federal prosecutors bringing new charges, accusing him of stealing from the client that put him on the map. Porn star stormy Daniels. My attorney and I are committed to making sure that everyone finds out the truth. Reporter: Avenatti representing Daniels when she tried to germinate her hush money agreement over Ang alleged affair against president trump. The notoriety led to a book deal for Daniel, a memoir titled "Full disclosure". There is a lot of publicity but didn't do it for that. This isn't what I want to be known for. Reporter: They say avenatti sent her literary agent a fraudulent letter and that it be sent to an account controlled by him. When he received the funds, the indictment state he used it to make a lease statement for a ferrari. To pay for hotel, airfare, meals, even dry cleaning. All for himself. When dams asked about the money, avenatti allegedly lied to her stealing $300,000 of her own money and only giving her half back. Now, avenatti did not want to comment on camera but tweeted out, I intend fighting these bogus legally baseless allegations and will plead not guilty to all charges. I look forward to the trial where I can begin to clear my name. The others include allegations he tried to extort Nike and defraud other client. What a tryst for him. Facing 300 year. 300 years.

This transcript has been automatically generated and may not be 100% accurate.

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