Attorney Michael Avenatti was arrested by Internal Revenue Service (IRS) agents on Tuesday evening during a break in a disciplinary hearing in Los Angeles. The arrest stems from allegations that Avenatti, known for his high-profile cases, scammed a client out of $840,000.
The arrest occurred around 6 p.m. outside the State Bar Court, where the State Bar of California has initiated proceedings against him, Fox News reported. “I can confirm that he was arrested by federal agents,” Avenatti’s lawyer Dean Steward said. “I anticipate a bail hearing at 2 p.m. tomorrow in Magistrate’s Court in Santa Ana. I haven’t seen the details of the warrant, but should have it later this evening.”
Avenatti, who was once referred to as “The creepy porn lawyer” by Tucker Carlson for his representation of Stormy Daniels in her legal battles against President Trump, did not return to court when the hearing resumed.
Just moments ago ex-Stormy Daniels attorney Michael Avenatti was taken out of the California State Bar Court in LA the custody of federal agents. pic.twitter.com/cU8sM4DUw1
Avenatti’s lawyers requested a sidebar with the judge and stated that he would be unable to return due to circumstances related to a criminal matter in Orange County. He faces accusations of fraud, tax evasion, and lying to investigators. Federal prosecutors also allege that he embezzled funds from clients. He has pleaded not guilty to the charges.
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Thom Mrozek, a spokesman for the U.S. Attorney’s Office in Los Angeles, told Fox News that Avenatti was arrested on suspicion of violating his pre-trial release. “I do expect him to appear in federal court in Santa Ana tomorrow,” he said, adding that documents related to the arrest were under seal.
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Tuesday’s hearing focused on allegations that Avenatti misappropriated $840,000 in settlement money owed to Gregory Barela, a former client. Barela repeatedly inquired about the funds, but Avenatti allegedly kept the money for himself. According to reports, he still owes Barela $710,000 but denies any wrongdoing. Avenatti’s legal troubles have been mounting. He was scheduled to travel to New York on Tuesday night for his criminal trial concerning an alleged plot to extort $25 million from sports apparel giant Nike. The attorney is facing multiple legal battles across the country.
This arrest adds another layer to Avenatti’s already complex legal situation. The outcome of these cases could significantly impact his future. The allegations of fraud and embezzlement are serious and could result in significant penalties if he is found guilty. The legal proceedings are expected to continue for some time as the various cases move through the courts.