In the case involving Daniels, prosecutors allege that Avenatti -- who helped negotiate the $800,000 advance for "Full Disclosure," which was published in September 2018 -- defrauded Daniels by instructing her literary agent to send two of the installments of the advance to an account controlled by him, rather than directly to Daniels.
When her agent told Avenatti that she couldn't do so without Daniels' authorization, Avenatti sent the agent a letter with a forgery of Daniels' signature, according to the indictment.
Avenatti then lied to Daniels, telling her the publisher hadn't made the payments, when in reality he used the money to cover payroll costs for his law firm, Eagan Avenatti LLP; a $3,900 lease payment for a Ferrari; and expenses including dry cleaning, airfare, hotels and car services.
In the late months of 2018 and through the beginning of this year, Daniels repeatedly asked about the missing payments, and Avenatti continued to lie to her, until Daniels made direct contact with her publisher, and the scheme began to unravel, according to the indictment.

How did he steal her identity?

A federal grand jury in Manhattan indicted celebrity attorney Michael Avenatti on Wednesday in two alleged schemes, charging him with fraud and aggravated identity theft involving his former client, Stormy Daniels, and with attempting to extort more than $20 million from sportswear giant Nike. Prosecutors charged Avenatti, 48, with stealing about $300,000 of Daniels' advance for her book contract, according to court papers, and using that money to pay employees of his law firm and a coffee business he owned.

In the case involving Daniels, prosecutors allege that Avenatti -- who helped negotiate the $800,000 advance for "Full Disclosure," which was published in September 2018 -- defrauded Daniels by instructing her literary agent to send two of the installments of the advance to an account controlled by him, rather than directly to Daniels.
When her agent told Avenatti that she couldn't do so without Daniels' authorization, Avenatti sent the agent a letter with a forgery of Daniels' signature, according to the indictment.
Avenatti then lied to Daniels, telling her the publisher hadn't made the payments, when in reality he used the money to cover payroll costs for his law firm, Eagan Avenatti LLP; a $3,900 lease payment for a Ferrari; and expenses including dry cleaning, airfare, hotels and car services.
In the late months of 2018 and through the beginning of this year, Daniels repeatedly asked about the missing payments, and Avenatti continued to lie to her, until Daniels made direct contact with her publisher, and the scheme began to unravel, according to the indictment.