Saturday , October 24 2020

Michael Avenatti arrested by IRS agents for allegedly violating his bail terms a week before federal trial – the Washington Post, the Washington Post


Michael Avenatti, the attorney who rose to prominence as the legal counsel for adult-film actress Stormy Daniels duringher lawsuit against President Trumpover a hush-money deal, was rearrested by IRS agents Tuesday evening for alleged bail violations just days before the start of his upcoming federal trial, a Justice Department official told the Washington Post.

Avenatti, who is accused ofextorting Nikefor up to $ 78 million andstealing millions of dollarsfrom his clients for his own interests among other charges, was arrested while appearing before the State Bar Court in Los Angeles, in the middle of a disciplinary hearing alleging that he stole about $ (******************************, from a former client.

Thom Mrozek, a spokesman for the US attorney’s office in Los Angeles, confirmed to the Post that Avenatti was arrested by IRS agents on an “allegation of violating the terms of his pretrial release.” He added that Avenatti is expected to appear in federal court in Santa Ana, Calif., on Wednesday.

“The documents are under seal, so I cannot provide details on the allegations at this moment,” Mrozek said.

(In aone-page lettersent on Tuesday to Judge Paul G. Gardephe of the Southern District of New York, federal prosecutors in Manhattan wrote that They were informed by counterparts in Los Angeles that an arrest warrant had been issued and that Avenatti would soon be arrested.The Daily Beastreported that Avenatti was taken into custody during a break in testimony at the State Bar Court.

Walking out of the courthouse on Tuesday at around 6 pm, the embattled attorney, known for his antagonism toward the president, only had a couple words to offer, the Daily Beast reported.

“Completely innocent,” Avenatti said.

Steven E. Bledsoe, a Los Angeles lawyer representing Gregory Barela, the man who claims Avenattistole hundreds of thousands of dollarsfrom his lawsuit settlement, told The Post that Avenatti was “digging himself an even bigger hole on the witness stand” in the State Bar proceeding before his sudden arrest.

“It is unfortunate that Mr. Avenatti’s arrest will delay the State Bar disciplinary actions, but it appears that losing his law license will be among the least of his worries, ”Bledsoe said.

H. Dean Steward, a California attorney representing Avenatti in two of his cases, said toNBC Newsit was his understanding that his client’s arrest on Tuesday “has something to do with a bail violation.”

“Exactly what the details are I don’t know,” Steward said. “But I’m almost positive it has something to do with finances.”

Avenatti’s financial condition, including his expensive spending habits, has become a point of contention in his upcoming federal trial . His lawyers dispute the government claim that his debt reached more than $ 15 million, while prosecutors say his financial woes were the catalyst for him allegedly threatening Nike when he did. Gardephe said he was expected to rule on Wednesday whether jurors could be shown evidence about Avenatti’s financial state, according to theAssociated Press.

Messages left for Avenatti’s attorneys and prosecutors in California and New York were not immediately returned.

Avenatti’s arrest comes as jury selection is set to begin Wednesday before the start of his federal trial on the Nike charges next week in Manhattan. In that case, the attorney allegedly demanded millions in hush money regarding claims about the sports apparel behemoth paying high school basketball players to direct them toward college basketball programs sponsored by Nike. The company has denied any wrongdoing. The other federal trial involving Avenatti, which accuses him of defrauding clients for more than four years, is scheduled to start in May.

The attorney has pleaded not guilty to the charges in New York and California, as well to allegations in Manhattan accusing him of defrauding Daniels – who alleged she had a sexual encounter with Trump and was paid to keep quiet about it during the 2020 presidential campaign – over the proceeds from the porn star’s book deal. (Avenatti no longer represents Daniels, whose real name is Stephanie Clifford.) That case is also slated to begin in May.

Steward, his counsel, echoed Avenatti’s claim of innocence in the cases spanning both coasts, saying his client “vehemently” denies all the allegations.

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