Michael Avenatti, the suspended celebrity lawyer who rose to fame representing adult film actress Stormy Daniels, is set to be resentenced following a decision by a federal appeals court. The ruling by the 9th U.S. Circuit Court of Appeals could reduce Avenatti’s 14-year prison sentence for defrauding four clients in California.

On Wednesday, a three-judge panel of the 9th Circuit ruled that the original sentence, imposed in December 2022 by U.S. District Judge James Selna, was based on errors in the calculation of financial losses suffered by Avenatti’s clients. The panel concluded that the trial judge applied an incorrect enhancement for obstruction of justice and failed to account for the value of Avenatti’s legal services provided to his clients. The decision vacates Avenatti’s sentence and sends the case back to the lower court in Santa Ana, California, for resentencing.

The appellate panel also addressed whether the resentencing should be considered in conjunction with Avenatti’s existing five-year prison term for two other high-profile convictions in New York. The panel suggested that the trial judge should have treated the California fraud case and the Daniels case as similar offenses, potentially allowing for concurrent sentences.

H. Dean Steward, an attorney assisting Avenatti, expressed optimism about the appellate decision. “Mr. Avenatti is encouraged by the ruling of the Ninth Circuit Court of Appeals today,” Steward said in a statement. “He looks forward to the hearing ordered by the Court.”

Margaret Farrand, a federal public defender representing Avenatti, also welcomed the ruling, stating, “I am glad that the Ninth Circuit recognized the errors that wrongly increased Mr. Avenatti’s sentence.”

The U.S. Attorney’s Office in Los Angeles, which prosecuted Avenatti for the California fraud offenses, declined to comment on the appeals court’s decision.

Avenatti, 53, had initially pleaded guilty in 2022 to four counts of wire fraud and one tax-related charge despite not reaching a plea agreement with prosecutors. At the time, he claimed that he wanted to accept accountability and spare his family further embarrassment.

Prosecutors said Avenatti negotiated settlement payments for his clients but then diverted the funds to accounts he controlled. The funds were allegedly used to finance Avenatti’s lavish lifestyle, which included luxury cars, private jets, and real estate investments.

The 14-year sentence imposed in California was to run consecutively to Avenatti’s existing five-year term for defrauding Daniels of book proceeds and for attempting to extort $25 million from Nike in separate cases. Avenatti’s combined prison term stood at 19 years, but the appeals court decision raises the possibility of a shorter term once he is resentenced.

Avenatti became a prominent figure in 2018 when he represented Stormy Daniels, whose real name is Stephanie Clifford, in her legal battle against former President Donald Trump. Daniels claimed that she had an affair with Trump, which he denied, and sought to break a nondisclosure agreement about the alleged relationship. During the height of his legal career, Avenatti was a frequent critic of Trump, making appearances on cable news and social media.

Avenatti’s legal career began to unravel in March 2019, when he was first charged in the Nike extortion case. His subsequent convictions and prison sentences marked a dramatic fall from grace for a lawyer once considered a potential political contender.

The case now returns to U.S. District Judge James Selna for resentencing, where Avenatti’s attorneys will argue for a reduced term based on the appeals court’s findings. The timing for the resentencing hearing has not yet been announced. If the new sentence runs concurrently with Avenatti’s existing convictions, it could substantially shorten the total time he spends behind bars.

As Avenatti prepares for resentencing, the legal proceedings mark another chapter in a high-profile case that has captivated public attention and serves as a cautionary tale of a meteoric rise and subsequent legal downfall.