"It's an absolute joke", Avenatti said in the video shared Thursday by the tabloid news site.
Avenatti also faces dozens of charges in southern California, where prosecutors on April 11 accused him of stealing millions of dollars from clients to pay for personal and business expenses, and lying to the Internal Revenue Service and a MS bank about his finances.
Avenatti rose to fame during his representation of Daniels, the adult-film actress who was a central figure in the hush-money scandal that resulted in Manhattan federal prosecutors charging Michael Cohen - President Donald Trump's former personal attorney - with campaign-finance violations for money he paid to silence women, including Daniels, who claimed affairs with Trump.
The indictment accuses Avenatti of forging his client's signature on a letter sent to her literary agent asking the agent to send Daniels's payments for her book Full Disclosure, in which she described her interactions with Trump, to an account Avenatti controlled.
Michael Avenatti-the attorney who, at one time, seemed to be a real thorn in Trump's side until finding himself embroiled in an alleged scheme to extort money from Nike-is in legal hot water once again.
Avenatti claimed his innocence on Twitter. She received millions of dollars worth of legal services and we expended huge sums in expenses.
Prosecutors said Avenatti eventually paid US$148,750 to Daniels after obtaining the money from another source, but lied when she asked where the second payment was by telling her the publisher "owes me a payment" and that he was "on it".More news: French police hunt suitcase bomber after blast in Lyon
Not so, said Berman in a statement.
In the latest federal indictment targeting the pugnacious Los Angeles attorney, prosecutors said Avenatti helped Daniels negotiate a book deal a year ago that included an $800,000 advance. At the time of the attorney-client split, Daniels said she wanted her new attorney to "review all legal matters" that she's been previously involved in.
"As for publisher - working them and threatening litigation", Avenatti responded, according to the indictment.
After assisting Victim-1 in securing a book contract, Avenatti stole a significant portion of Victim-1's advance on that contract.
Prosecutors said Avenatti spent some diverted money on monthly lease payments for a Ferrari, hotels, airfare, restaurant meals, vehicle service and business expenses. "Far from zealously representing his client, Avenatti, as alleged, instead engaged in outright deception and theft, victimizing rather than advocating for his client".
If convicted on all charges, Avenatti could face several hundred years in prison.
On Tuesday, Avenatti wrote on Twitter that he expected "an indictment to issue from SDNY in the next 48 hrs charging me in connection with my arrest in March. I will be fully exonerated once the relevant emails, contracts, text messages, and documents are presented", he said.More news: Iranian FM Slams Trump as 'Terrorist', Vows Tehran Will 'See His End'
Avenatti added in a later tweet that his agreement for representing Daniels "included a percentage of any book proceeds".
The charges were announced by US Attorney Geoffrey Berman in Manhattan.
The Daniels investigation is not related to those charges.
The statement alleges that Avenatti threatened "to use his ability to garner publicity to inflict substantial financial and reputational harm on the company if his demands were not met".
Geragos, identified by prosecutors as an unindicted co-conspirator, was not charged with any crimes.
Avenatti was hit with two criminal counts regarding Daniels' book deal, one for wire fraud and the other for aggravated identity theft.More news: Audi pulls plug from TT coupe; plans to cull R8