An FBI agent said in the complaint in NY that Avenatti had threatened to hold a press conference on the eve of Nike's quarterly earnings call to announce "allegations of misconduct by employees of Nike".
"I'll go and I'll go take $10 billion off your client's market cap".
ABC News has learned that the alleged unnamed co-conspirator referenced in the NY case against Avenatti is celebrity attorney Mark Geragos.
Then we learned Avenatti will face federal extortion charges.
Avenatti was to appear in court in New York City before Magistrate Judge Katharine H. Parker.
US prosecutors have charged attorney Michael Avenatti with extortion, wire and bank fraud.
The criminal defense attorney, who represented a number of notable figures including Empire's Jussie Smollett and former Congressman Gary Condit, was the co-conspirator referred to in the criminal complaint against Avenatti, according to the Wall Street Journal.
Law enforcement officials were set to detail charges against Avenatti at a press conference in Los Angeles later on Monday. It'd be a real shame if something happened to it. Attorney Michael Avenatti has been arrested and is being charged with extortion by the US Attorney for the Southern District of NY. He described how investigators had recorded a phone call in which Avenatti threatened a lawyer for Nike unless the company met his demands. The office says that Avenatti lied to a client about the timing and amount that was being paid in a settlement.
Avenatti was not immediately available for a comment. He also allegedly used fake tax returns to get a $4.1 million loan from a MS bank to fund his law firm and coffee business.
Meanwhile, Daniels, whose real name is Stephanie Clifford, tweeted on March 12 that she had hired another lawyer "to review all legal matters involving me". The day before Avenatti's March 2019 arrest, Robert Mueller's report into Russian interference in the 2016 presidential election, it was widely reported that there would be no further indictments handed down in the case. She said she would reveal more in the future about Avenatti's conduct.
The allegations related to Nike arose out of Mr. Avenatti's representation of a client identified in the complaint as the coach of an amateur men's basketball program in California, which prosecutors said had a sponsorship agreement with Nike.
Daniels released a statement on Twitter regarding Avenatti, saying she was "saddened but not shocked" at the news.