Friday, January 24, 2020
Washington Post, Michael Avenatti, Arrested by IRS agents and Accused of Violating Bail Terms, to Remain in Jail, Judge Rules:
Michael Avenatti, the attorney who rose to prominence as the legal counsel for adult-film actress Stormy Daniels during her lawsuit against President Trump over a hush-money deal, will remain in jail following his rearrest by IRS agents, a judge in Los Angeles ruled Wednesday after prosecutors alleged he continued to commit financial crimes while out on bail.
Avenatti — who is accused of extorting athletic apparel maker Nike for up to $25 million and stealing millions of dollars from those he once represented, including Daniels — was arrested Tuesday evening while appearing before the State Bar Court in Los Angeles, in the middle of a disciplinary hearing alleging he stole about $840,000 from a former client.
Prosecutors alleged in court filings made public Wednesday that Avenatti had “brazenly attempted” to hide his money and defraud people and entities to whom he was millions of dollars in debt — including a former law partner he owed $5 million, a former client he owed $2.2 million, and an ex-wife he owed $2.5 million in spousal and child support.
(Hat Tip: Ann Murphy.)