of a nalty's embezzlement scheme typically operated.he four cases of embezzlement alleged in the indictment, mr. avenatti received money on behalf of clients into client trust accounts, misappropriated the money and then lied to the clients about receiving the money or in one case claimed that the money had already been sent to the client. the first client victim detailed in the indictment filed a lawsuit alleging that the county of los angeles violated his constitutional rights and that he suffered severe emotional distress and severe physical injuries, including becoming a paraplegic. the victim who is identified as client one in the indictment obtained a $4 million settlement which the county of los angeles paid in january 2015 to a trust account controlled by mr. avenatti. but more than four years later client one is still waiting to receive his portion of the settlement. as it turns out, within months after receiving the settlement proceeds in early 2015, mr. avenatti had drained the entire $4 million payment from his trust account