Avenatti still faces 31 counts of wire fraud, bank fraud, aggravated identity theft, bankruptcy fraud and tax-related charges.

The embattled Avenatti still faces a host of other legal difficulties

The charges related to Daniels are the third criminal case brought against Avenatti.

On Twitter, Avenatti denied the charges. “No monies relating to Ms. Daniels were ever misappropriated or mishandled,” he said.

When asked to enter a plea in federal court in Santa Ana, California, Avenatti told the judge, "Not guilty to all charges."

Last month, prosecutors in the Southern District of New York alleged that Avenatti tried to extract more than $20 million from Nike

Is that good for Kelly or bad for Kelly? "It's not bad for him," says Greenberg. "It means prosecutors file weak cases. And we have four weak cases (against Kelly)." 

Bronfman told Garaufis at a hearing Thursday that she was aware of Avenatti’s presence at that meeting.

Michael Avenatti's new legal woes -- being accused of extortion and fraud -- could derail the case against R. Kelly ... that's what the singer's lawyer thinks.

"Mark Geragos is no longer a CNN contributor," a network spokesperson said Monday.

According to the complaint, Avenatti demanded that Nike pay his client $1.5 million because Nike was not renewing his client's contract and that Nike hired Avenatti to conduct an internal investigation. Avenatti's client is not named in the complaint.

Avenatti also represented Julie Swetnick, one of the several women who accused Supreme Court judge Brett Kavanaugh of sexual misconduct in a three-page sworn declaration to the Senate Judiciary Committee.

Avenatti did not appear at the court hearing and never filed opposing arguments in the case.

Stormy Daniels' lawyer, who is gearing up for a 2020 presidential run, also has personally owed at least $1.2 million in federal taxes, according to an expose in the Daily Beast.