Michael Avenatti, attorney and founding partner of Eagan Avenatti LP, second left, exits from federal court in New York, U.S., on Tuesday, May 28, 2019. Louis Lanzano | Bloomberg | Getty Images

Controversial lawyer Michael Avenatti searched the internet for the term "insider trading" and terms involving Nike stock options as he engaged in a scheme to shake down the athletic apparel giant for up to $25 million, federal prosecutors claim. The searches back up a claim that Avenatti intended to profit from a drop in Nike's stock price "if he followed through on his threats" to publicize damaging claims about the company, prosecutors said. Prosecutors said in a court filing that Avenatti searched for those terms "shortly" after a March 10, 2019, phone call with and an email from Jeffrey Auerbach, an advisor to a basketball coach who Avenatti has claimed secretly recorded conversations with Nike executives. The filing, which detailed why prosecutors believe they are entitled to introduce evidence of Avenatti's web searches and other evidence, came on the eve of jury selection for Avenatti's extortion trial Monday in U.S. District Court in Manhattan.

Jury selection began Monday, Jan. 27, 2020, in the trial of attorney Michael Avenatti, who is accused of trying to extort up to $25 million from Nike. Source: Elizabeth Williams

Avenatti's lawyers have opposed introduction of the search terms as evidence, noting that there is no evidence that Avenatti engaged in insider trading. Avenatti, 48, gained notoriety in 2018 with his representation of his then-client Stormy Daniels, a porn actress, in multiple cases involving President Donald Trump. Avenatti was arrested last spring in three separate federal cases. In addition to the Nike case, he is accused of swindling Daniels out of $300,000 in book proceeds and of stealing millions of dollars from other clients. Avenatti has pleaded not guilty in all three cases. Two weeks ago, his release bond was revoked after federal prosecutors in California said he had committed new financial crimes while free on bail. In the Nike case, Avenatti is accused of demanding as much as $25 million from the company in exchange for not going public with allegations by the coach, Gary Franklin, that the company made payments to top high school basketball players and their families. In their court filing, prosecutors wrote that soon after his call with Auerbach, Avenatti "used his iPhone to search for 'nike.put options,' to visit the website 'Nasdaq.com — Nike Inc. (NKE) Option Chain,' and to search for 'insider trading," prosecutors wrote.