Thread by @innercitypress

OK - US v. Avenatti, Stormy Daniels case, Day 2. Literary agent Luke Janklow still on the stand, cross-examined by Avenatti's taxpayer-funded Federal Defender. Inner City Press is covering the case matthewrussellleeicp.substack.com/p/in-stormy-da… and will live tweet, thread below

Federal Defender Dalack: So here you called Sally Richardson saying only $200,000 in first payment was "asinine publishing bulls*it."
Janklow: It's a colloquialism.
Federal Defender: And Mr. Avenatti wanted $300,000 up front.
Janklow: Yes.

Federal Defender: And you told Mr. Avenatti about "Fire and Fury." What's that?
Janklow: Another Trump book. It made a lot of money.
[Inner City Press: even with the free leaked PDF out there]
Federal Defender: You trusted Mr. Avenatti, right?
Janklow: Yes.

Federal Defender: So you were waiting for Mr. Avenatti to take this contract to Ms. Daniels and get it approved, right?
Janklow: Yes.
FD: Mr. Avenatti was a folk hero for you?
Janklow: It was an exciting moment.

FD: You were aware he was doing work with Ms. Daniels with respect to her case against President Trump?
Assistant US Attorney: Objection!
Judge Furman: Sustained.

FD: Why did the publisher need to be calmed down?
Janklow: They had not met the principal in person, on a video call with her.
Judge Furman: By principal, you mean Ms. Daniels?
Janklow: Yes.

Federal Defender Dalack: You say you rejected the proposed escrow clause out of hand. But you forwarded it to Mr. Avenatti, right?
Janklow: To show him how absurd it was.
Judge Furman: Mr. Dalack, again, please finish this line of questioning.

Federal Defender: You forwarded the contract to Mr. Avenatti with the signature, yes?
Janklow: Of course, with the signature.
Judge: This cross should end in the next few minutes.
FD: Yes, Your Honor. I offer into evidence LJ 157.
AUSA: Objection.
Judge: Sustained.

FD: Mr. Janklow, before Steve Cohen counter-signed, you wanted to consult with Mr. Avenatti, right?
Janklow: I don't remember.
Judge Furman: I'll give you a couple more questions and that's it.
FD: I'm wrapping up this chapter.

FD: May I have a brief sidebar??
Judge Furman: You may not. Please have a seat. We'll see you at [re-cross].
FD Dalack: Your Honor --
Judge Furman: I don't want to hear from you on this. Mr. Janklow you are excused.
Dalack: We may call him during our case.

Next witness: Justin Ellard.
AUSA: Where did you arrest the defendant?
Agent Ellard: In a mall in Hudson Yards.
AUSA: What is Hudson Yards?
Ellard: A relatively new real estate development in Manhattan.

AUSA: Did you seize anything?
Agent Ellard: Mr. Avenatti's briefcase. I conducted an inventory search. I found an iPad, a passport, things of that nature.
AUSA: What did you walk into court with today. What is it?
Agent Ellard: It is a gray colored MacBook Pro.

[And with that, Agent Ellard is done. Next witness will be by video.]
Judge Furman: I'm going to the jury a short break now, ten minutes max, so we'll take our lunch later than usual. Keep an open mind & do not discuss the case or do any research. See you shortly.

With jury out of the room:
Judge Furman: I don't think a single question Mr. Dalack asked this morning was relevant to this case.
Federal Defender: I had a whole other chapter to discuss with Mr. Janklow how poorly the book did - due to her own failings.

Federal Defender: Mr. Janklow took money from the publisher before he had a signed fee agreement with Ms. Daniels.
Judge Furman: I gave you warnings, you failed to take the hint.
Federal Defender Dalack: May I confer with Mr. Baum?
Judge: Do whatever you want.

They're back and...
Federal Defender Baum: A serious issue has arisen about our continued representation of Mr. Avenatti. We need a recess. He may want to represent himself.
Judge Furman: It is a qualified right until the trial begins. Sit down, Mr. Avenatti.

Judge Furman: I have received a communication by a lawyer for a third party, Justin Loupe. I am going to reject it.
Defense: We expect what Mr. Loupe would say would go beyond Ms. Daniels' cross examination.
Judge Furman: Get the witness unmuted, please.

Next witness is Jade Regnier, formerly employed at Avenatti's law firm.
AUSA: What was your role?
Regnier: As a paralegal I handed exhibits for class actions and contacting the members of the class action, that type of thing. As office manager I oversaw the staff.

AUSA: What is this document?
Regnier: A client agreement with Ms. Clifford, a/k/a Stormy Daniels.
AUSA: What does A-K-A mean?
Regnier: Also known as.
AUSA: This provision about a legal defense fund - was one set up for Ms. Daniels?
Regnier: Yes, by Mr. Avenatti.

AUSA: Was the money used only for Ms. Daniels?
Federal Defender: Objection!
Judge Furman: Overruled.
Regnier: No, it was not only use for Ms. Daniels.

AUSA: What did you hear Mr. Avenatti say about how he and the firm would make money from representing Stormy Daniels?
Regnier: That they would make money from the lawsuit against President Trump.

AUSA: Now a stipulation: a representative of Zions would says, he or she is familiar with the record keeping of California Bank & Trust. [This could take a while]

AUSA: Ms. Regnier, did you review these charts and are they accurate?
Regnier: Yes.
AUSA: Show this to the jury.

AUSA: Mr. Avenatti asked you to send him this bank account information?
Regnier: Yes.
AUSA: Let's focus on this one.
Regnier: It's from Mr. Avenatti to Lucus Janklow, with wiring information.

AUSA: What did Mr. Avenatti say about spending Ms. Daniels' money on his personal expenses?
Regnier: He did not bring it up.
AUSA: What was the condition of his law firm?
Regnier: It was not good. The firm was essentially evicted from its offices.

AUSA: What did Mr. Avenatti ask you to pay from the law firm's money?
Regnier: His rent and his car payment. He did not have the money.
AUSA: Did you make payments to Lisa Storie Avenatti?
Regnier: Yes. She's Michael's current ex-wife.

AUSA: Did Mr. Avenatti tell you to use law firm funds to pay Mareli Miniutti?
Regnier: Yes.
AUSA: Who was she?
Regnier: Mr. Avenatti's then girlfriend.

AUSA: Why did the law firm change from California Bank & Trust to City National Bank?
Regnier: The law firm overdrew at California Bank & Trust.

Judge Furman calls lunch for the jurors then says: I'll give Mr. Avenatti half an hour to think about if he wants to make a clear and unequivocal request to represent himself. If he does, tell me after the break. But I will not take it up until after the trial day

Judge Furman again says that a defendant's right to represent him- or herself is a qualified right, after the trial begins, to be balanced with how a change would impact the trial. He adds, he does not want to waste the jurors' time. Live tweeting will resume

They're back.
Avenatti: I'm making a formal request to represent myself and cross examine Ms. Regnier.

Avenatti: There has been a breakdown of communication with my lawyers. I have superior knowledge about what she testified about. I've heard your Honor's rulings on my counsel's performance. I am still technically a member of the bar, I represented myself in Cali

Avenatti: Judge Selna allowed me to represent myself. Under my 5th and 6th Amendment rights, and under Faretta, I request to represent myself. I am ready to cross examine now.
Judge Furman: Do we take this up now?
AUSA: We prefer the end of the day.

Judge Furman: Let's deal with it now. You have a right to represent yourself. But it cannot be for delay. It must be timely. I'd like you to know that these Federal Defenders are able. There will be serious consequences if this is mishandled.

Judge Furman: There is no veiled threat here - the choice is yours. But you do not have the right to manipulate these circumstances. You cannot go back and forth.

Judge Furman: This is an important moment in the case. If you decide to represent yourself I will appoint your existing lawyers as stand-by counsel to help you.
[Note: Accused CIA leaker Josh Schulte is trying to fire his stand-by counsel: innercitypress.com/sdnylive86schu…

Judge Furman: You would not be permitted to essentially testify to the jury without taking the witness stand. You would not be permitted to abuse the dignity of the court [or of witnesses - Stormy?]

Judge Furman: Would you like time?
Avenatti: May I have 15 minutes?
Judge Furman: No. You have five minutes, or we'll take it up at the end of the day.

Judge Furman: How do you want to proceed?
Avenatti: I am prepared to proceed and represent myself. I have one question - I am asking that the jury be instructed that "Mister Avenatti has decided to assist in his defense."
Judge Furman: No, I'm not accepting hybrid

Judge Furman: Now I need to ask about your education, alcohol or drugs. Hospitalized for mental illness?
Avenatti: I was hospitalized for surgeries.
Judge Furman: Alcohol in the last 48 hours?
Avenatti: One drink last night.
Judge Furman: Clear mind?
A: Yes.

Judge Furman: Did you graduate from law school?
Avenatti: Yes. That was the end of my education.
Judge Furman: Tell me about the case before Judge Selna.
Avenatti: I invoked my pro se right just before the jury was sworn. The case resulted in a mistrial.

Judge Furman: Are you familiar with the Federal Rules of Evidence?
Avenatti: Yes.
Judge Furman: And with the Federal Rules of Criminal Procedure?
Avenatti: Less than Evidence, but yes.

AUSA: Mr. Avenatti cross examined this witness at length in California.
Judge Furman: There may be some gamesmanship here, but if I let him represent himself, there will be no going back.

Judge Furman: I find he is competent, I find that he may and will be representing himself.

Now jury is entering. Judge Furman will give new instruction:
Judge Furman: Jurors, Mr. Avenatti will represent himself for the duration of the trial. He will be the one making the objections, questioning witnesses and making a closing statement.

Judge Furman: Don't speculate why he has made this decision. We will proceed with the direct of Ms. Regnier.
AUSA: Let's look at the last paragraph of GX 2. Please read it.
Regnier: We've raised $592,000...
AUSA: Where were you working from?
Avenatti: Objection!

Judge Furman: Overruled.
Regnier: I was working from home. The law firm was evicted.
Avenatti: Your Honor, may I have a standing objection to this?
Judge Furman: You may.
AUSA: How long had the law firm not paid rent?
Regnier: 5 months.

Judge Furman: Cross examination.
Avenatti: Ms. Regnier, who is Luke Janklow?
Regnier: I have no personal knowledge.
Avenatti: Who is Sally Richardson?
Regnier: I have no idea.
Avenatti: What do you know about Ms. Daniels' book deal?
Regnier: Nothing.

Avenatti: What do you know about the book advance payments?
Regnier: No knowledge.
Avenatti: Did you communicate with Ms. Daniels?
Regnier: Never directly. And my emails were not responded to.
Avenatti: So, no response - true?
Regnier: True.

Avenatti: Who at our firm was responsible for communications with Ms. Daniels?
Regnier: You were.
Avenatti: Let's turn to --
Judge Furman: You're too close to the microphone.

Avenatti: So this contract says if we negotiated a book deal for Ms. Daniels we would be responsible for a reasonable fee, right?
Regnier. Right.
Avenatti: And my time would be billed at $850 a hour or more, right?
Regnier: Yes.

Avenatti: You used a program called TABS, right?
Regnier: Yes.
Avenatti: TABS was to see how much time was spent in the legal representation, right?
AUSA: Objection - relevance.
Judge Furman: Sustained.

Avenatti: Your Honor, could I have a sidebar?
Judge Furman: No(pe).
Avenatti: Mr. Regnier, we also used Quickbooks, yes?
AUSA: Objection!
Judge Furman: Overruled.

Avenatti: The Legal Defense Funds, it was set up with Crowd Justice, not GoFundMe as you said earlier?
Regnier: I don't remember.
Avenatti: You don't know what % of those money belonged to the firm, and what % to Ms. Daniels, right?
Regnier: I don't know that.

Avenatti: Who from the government interviewed you?
Regnier: Mr Sobelman, an FBI agent, others.
Avenatti: Did they ever ask you about the costs of the Daniels representation?
Regnier: No.

Avenatti: Do you remember the firm's verdict over $400 million?
AUSA: Objection!
Judge Furman: Overruled.
Avenatti: That the Daily Journal said we were number one?
AUSA: Objection.
Judge Furman: Sustained.

Avenatti: Are you aware of any money I put to an improper purpose?
AUSA: Objection!
Judge Furman (after a pause) Sustained.
Avenatti: You testified I put Ms. Daniels' funds to my personal use. Please state the date & payee.
Regnier: I don't have that information.

Avenatti: While you were at the firm you were paid well, were you not?
AUSA: Objection.
Judge Furman: Sustained.
Avenatti: You were the highest paid non attorney at the law firm, right?
AUSA: Objection.
Avenatti: Goes to bias.
Judge Furman: I'll allow it.

Avenatti: One year you got a bonus over $100,000, correct?
Regnier: Yes, but --
Avenatti: Move to strike everything after Yes as non-responsive. Didn't I pay to sent you and your husband to Cabo?
Regnier: You did.

Avenatti: Let's talk about contingency fee agreements - 25% to 45% of the recovery, right?
Regnier: Right.
Judge Furman: Please wrap up this line of questions.
Avenatti: I just have one more in this line, then I'll move on.

Judge Furman: How much more time?
Avenatti: An hour or an hour and a half. Ms. Regnier, you can remember at least $100 million in wins, no?
Judge Furman: Sustained. This is testimony.

Avenatti: Did you think our firm's legal work was of a high quality?
AUSA: Objection.
Judge Furman: Sustained.

Avenatti: There was another lawsuit against Keith Davidson, Ms. Daniels former lawyer, filed in CA?
Regnier: Yes.
Avenatti: And a lawsuit against a strip club in Florida, yes?
Regnier: I remember that.
Avenatti: A false arrest in Columbus, Ohio too?
Regnier: Yes.

Avenatti: And Ms. Daniels accused two long term friends of stealing from her, right?
AUSA: Objection.
Judge Furman: Sustained.

Avenatti: In preparing to testify today, did you make an effort to look at the electronic files concerning the firm's representation of Ms. Daniels?
Regnier: I looked at the documents provided to me, that's all.

At 3 pm on the nose, Judge Furman wishes the jurors a very pleasant evening. We'll stay to cover any lawyer arguments - then run down to see if we catch Avenatti talking and walking like yesterday. Watch this feed.

Update: Some delay in Avenatti-Watch out on Worth Street - Judge Furman has told him to go with court staff and get a COVID test, as required of witnesses and counsel who want to question or speak without masks.