US private attorney Michael Avenatti, who rose to fame representing porn film star Stormy Daniels against President Donald Trump, has been arrested while out on bail, according to Los Angeles Times.
“Los Angeles attorney Michael Avenatti engaged in fraud and money laundering to hide $1 million from one of his ex-wives and other creditors after his March arrest, federal prosecutors allege in newly filed court papers,” the LA Times reported.
“Avenatti, who is awaiting trial on three federal indictments, was arrested again late Tuesday in downtown Los Angeles and remained in custody Wednesday morning, according to Thom Mrozek, a spokesman for the U.S. attorney’s office in Los Angeles.”
Federal prosecutors are hoping a judge will revoke Avenatti’s bail at a Wednesday hearing in Orange County.
“In documents filed in federal court in Santa Ana, they allege that Avenatti received the $1 million in legal fees in April as part of a client’s settlement, but concealed the money from his second ex-wife Lisa Storie, his former law partner Jason Frank, tax authorities and other creditors,” the LA Times explained.
“Avenatti’s latest arrest took place at a California State Bar Court hearing where the bar was seeking to block him from practicing law while he faces fraud, extortion and other charges in the three federal indictments.
Prosecutors and the State Bar say he stole millions of dollars from his own clients.”