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Avenatti, 50, represented Ms Daniels in lawsuits against then-president Donald Trump after she went public with allegations of an affair between them.
On Friday, jurors found him guilty of stealing nearly $300,000 (£225,000) from Ms Daniels.
He now faces up to 22 years in federal prison.
It marks the second time Avenatti has been convicted in federal court, a humbling fall from grace for a man once rumoured to be considering a 2020 presidential run.
The California lawyer became a familiar face on cable news and social media after he leveraged his representation of Ms Daniels into a platform as a top Trump critic.
Ms Daniels, whose real name is Stephanie Clifford, was paid $130,000 days before the presidential election by Mr Trump’s former lawyer, Michael Cohen, in order to keep quiet.
Avenatti represented her in her successful bid to throw out the non-disclosure agreement and helped negotiate an $800,000 (£591,000) advance for her 2018 book Full Disclosure.
But prosecutors showed that, unbeknownst to Ms Daniels, he forged her signature on the publishing contracts and directed almost $300,000 (£225,000) from her literary agent into his coffers.
Avenatti fired his court-appointed attorneys in the case and chose to represent himself.
In dramatic testimony last week, Ms Daniels faced off against him on the witness stand, saying: “He lied to me and stole from me”.
He was found guilty of wire fraud and aggravated identity theft.
Previously, Avenatti served time in prison over an attempt to extort $25m from Nike, but was released early due to the Covid-19 pandemic.