Michael Avenatti charged with 36 counts of fraud and tax offenses

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Starting 2015 until 2017, GBUS failed to pay around $3.2 million in federal payroll taxes including at least $2.3 million in trust fund taxes. GBUS collected the trust fund taxes from its employees’ paychecks. IRS initiated a collection action by filing a federal tax lien against GBUS. Avenatti allegedly tried to block the agency’s efforts to collect the taxes.

Furthermore, Avenatti is facing two counts of bank fraud. He allegedly submitted fraudulent loan applications that included tax returns not with the IRS.

Moreover, he is facing four counts of bankruptcy fraud charges for allegedly concealing his law firm’s assets from the Bankruptcy Court.

Avenatti says he is “not guilty”

In a statement, Acting U.S. Attorney Nick Hanna said the celebrity lawyers’ criminal conducts are linked together. He noted that the “money generated from one set if crimes appear in other sets—typically in the form of payments to lull victims and to prevent Mr. Avenatti’s financial house of cards from collapsing.”