BILOXI, MS (WLOX) - Michael Avenatti, the lawyer best known for representing porn star Stormy Daniels in lawsuits against President Trump is being released from prison on a $300,000 bond Monday.
Avenatti is facing federal charges after allegedly defrauding a Biloxi bank. He’s also accused of trying to extort millions from Nike.
Prosecutors say Avenatti used fake tax returns to take out three separate loans from The Peoples Bank in Biloxi. This happened between Jan. 2014 and April 2016. According to the complaint, Avenatti submitted false documents, including false tax returns and balance sheets, in connection with the three loans he took out at the bank.
Avenatti obtained the three loans from The Peoples Bank in 2014: one for $850,500, one for $2,750,000, and one for $500,000.
The Peoples Bank President Chevis Swetman issued this statement in response to the allegations.
Avenatti was arrested Monday in New York on federal charges there and in and California. He is now facing up to 50 years in prison if convicted on the wire and bank fraud charges.
In total, the case alleges in part that Avenatti collected a $1.6 million settlement for a client and used it for his own interests.
To read the criminal complaint in full, click HERE.